Govt. Introduces Updated Provisions on PPN and/or PPnBM Exemptions and Non-Impositions for Certain Taxable Goods and/or Services from Outside Indonesian Customs-and-Excise Areas

In order to adjust the framework for the granting of facilities for Value-Added Tax (pajak pertambahan nilai– “ PPN ”) and Luxury-Goods Sales Tax (Pajak Penjualan atas Barang Mewah– “ PPnBM ”) (collectively referred to as “ Taxation Facilities ”) originally set under Law No. 7 of 2021 on the Harmonization of Tax Regulations (“ Law 7/2021 ”), the government has issued Regulation No. 49 0f 2022 (“ Regulation 49/2022 ”), which sets out a number of updated provisions that address the following areas: 1) Exemptions to PPN impositions; and 2) Non-imposition of PPN or PPN and PPnBM upon the following: a) Importation and/or deliveries of certain taxable goods and/or services (collectively referred to as “ Taxable Objects ”); and 2) Utilization of certain taxable services deriving from outside of Indonesian customs-and-excise areas (“ Customs Areas ”). [1]