The Minister of Finance (“MoF”) has issued a new Regulation No. 33/PMK.010/2021 (“PMK-33”) regarding the amendment of MoF Regulation No. 237/PMK.010/2020 (“PMK-237”) concerning the Taxation, Customs, and Excise Facilities in Special Economic Zones (SEZ).

The main points of PMK-33 are summarized as follows:

• The Business Entity shall have approval as the Business Entity to build and/or manage the SEZ from the provincial government, regional government, ministry/non-ministry state institution, and also the National Council (“Dewan Nasional”).
• To obtain tax facilities, the business entity in SEZ must apply through the SEZ Application System. In the previous regulation, it was done through the Indonesia National Single Window (INSW).
• IT inventory must be used by Business Entities with businesses that have more than one category.
• Value Added Tax and/or Sales Tax on Luxury Goods is not charged for:
  1. delivery of certain Tangible Taxable Goods from other places in the Customs Territory (TLDDP), Free Zones, and Bonded Storage (TPB) to Business Entities and/or Business Actors;
  2. import of certain Tangible Taxable Goods to SEZ by Business Entities and/or Business Actors;
  3. import of consumer goods into Tourism SEZ by Business Entities and/or Business Actors;
  4. delivery of certain Tangible Taxable Goods between Business Entities, between Business Actors, or between Business Entities and Business Actors;
  5. delivery of Taxable Services and/or Intangible Taxable Goods including rental services for land and/or buildings in SEZ by Business Actors and/or Business Entities to other Business Actors and/or Business Entities in the same SEZ or other SEZ
  6. delivery of certain Taxable Services and Intangible Taxable Goods by Entrepreneurs from TLDDP or other than TLDDP to Business Entities/Business Actors; and
  7. utilization of Taxable Services and/or Intangible Taxable Goods from outside the Customs Territory within SEZ by Business Entities and/or Business Actors.This PMK-33 is applied since 1 April 2021.