Minister of Finance regulation No. 198/PMK.010/2019 regarding Value Added Tax and Luxury Goods Sales Tax Treatment on Import of Taxable Goods Exempted from Collection of Import Duty
- February 12, 2020
- Posted by: Administrator
- Category: Tax News
On 23 December 2019, the Minister of Finance (“MoF”) issued regulation No. 198/PMK.010/2019 regarding Value Added Tax and Luxury Goods Sales Tax Treatment on Import of Taxable Goods Exempted from Collection of Import Duty (“PMK-198”). PMK-198 is the seventh amendment of MoF regulation No. 231/KMK.03/2001 as most recently amended by MoF regulation 137/PMK.0l0/2018.
The new change in PMK-198 is as follows:
The import of Taxable Goods which is exempted from import duty and granted non-collection of Value Added Tax and/or Value Added and Sales Tax on Luxury Goods, is also applied to goods in the context of a Coal Mining Concession that is entered into by a Contractor in the Coal Concession with the following conditions:
- The contract was signed before 1990;
- The contract includes provisions regarding the granting of exemption or relief of import duties on imported goods in the framework of the Coal Mining Cooperation;
- The contract does not contain provisions regarding the period for granting exemption or relief of import duties; and
- The imported goods are State Property.
This PMK-198 is effective since 31 December 2019.