On 13 September 2021, the Minister of Finance (“MoF”) issued a new Regulation No. 120/PMK.010/2021 (“PMK-120”) as Second Amendment of MoF Regulation Number 31/PMK.010/21 concerning Luxury Goods Sales Tax on Delivery of Taxable Goods Categorized as Luxurious in the Form of Certain Vehicles Borne by the Government for Fiscal Year 2021.

The essential points of PMK-120 are as follows:

1. PPnBM which is payable on the delivery of automotive vehicles in the form of sedan or station wagon and automotive vehicles for transportation of fewer than 10 (ten) persons including the driver, other than a sedan or station wagon whose cylinder content capacity is up to 1.500 (one thousand five hundred) cubic centimeters (cc) and already meeting specific criteria, shall be 100% (one hundred percent) borne by the Government.
2. PPnBM which is payable on the delivery of automotive vehicles for transportation of fewer than 10 (ten) persons including the driver other than a sedan or station wagon with cylinder content capacity of more than 1,500 (one thousand five hundred) up to 2.500 (two thousand five hundred) cc and already meeting specific criteria shall be 50% (fifty percent) borne by the Government.
3. PPnBM which is payable on the delivery of automotive vehicles for transportation of fewer than 10 (ten) persons including the driver other than a sedan or station wagon, with 2 (two) axle drive (4×4) system with cylinder content capacity of more than 1,500 (one thousand five hundred) cc up to 2,500 (two thousand five hundred) cc and already meeting specific criteria shall be 25% (twenty-five percent) borne by the Government.

Entrepreneurs that have already created the September period Tax Invoices for the delivery of automotive vehicles shall replace the Tax Invoices using the new rates above. Any excess VAT payment, on the other hand, must be returned to the Customers.

This facility of PPnBM borne by the Government will apply from September to December 2021.