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Indonesia Provides Luxury Tax Exemption for Most Goods

18 June 2015

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Approved Changes

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Indonesia

On 8 June 2015, the Indonesian government published Regulation 106/PMK.010/2015, providing a luxury goods sales tax exemption for most goods in order to stimulate consumption. Except for cars, yachts and aircraft, luxury goods will no longer be subject to the tax, which ranges from 10% to 125% depending on the nature of the good. As a partial offset, the government also issued Regulation 107/PMK.010/2015 the same date, which increases the import tax by 10% on the exempt luxury goods. The exemption applies 30 days from the date the Regulation was published, and the increased import tax applies 60 days from...