DJP Prepares New Scheme for Calculating Tax Base on Other Value

The Directorate General of Taxes (DJP) under the Ministry of Finance (Kemenkeu) plans to follow up on the implications of Article 4 of Minister of Finance Regulation No. 131 of 2024 ("Permenkeu 131/2024"). This regulation specifies that the Tax Base (DPP) on other value, set at 11/12 of the selling price, does not apply to taxable goods and services whose DPP amount has been calculated through a separate ministerial regulation.

Hestu Yoga Saksama, Director of Tax Regulations at DJP Kemenkeu, stated that the DJP is considering developing a new scheme for calculating the DPP on other values for selling prices of taxable goods and services through separate regulations.

"We are trying to align the rules to refine existing calculation schemes or create new regulations because the current rules generally use special rates," said Yoga.

It is known that the government issued Permenkeu 131/2024 to regulate the use of DPP on other values at 11/12 of the selling price, keeping the effective Value Added Tax (VAT) rate at 11%. The authority to set DPP on other values is stipulated in Article 8A paragraph (2) of Law No. 42 of 2009, which amends Law No. 8 of 1983 on Value Added Tax on Goods and Services and Sales Tax on Luxury Goods ("Law 8/1983").

"We will issue transitional regulations and other specifics," he concluded.