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Jakarta, Ideatax -- What is international trade tax? Maybe you have heard or read literature about this term, but don't understand its meaning. As the name suggests, this trade tax refers to a type of tax or state revenue originating from export and import activities.
As is known, the aim of international trade is, among other things, to expand market segmentation, meet the country's needs and increase the country's foreign exchange. In this case, trade taxes are one of the instruments used by the government to regulate and optimize state revenues from cross-border economic activities.
Understanding the tax system in international trade is important, so that you can apply the right policies and support economic growth. For that, let's explore further!
Definition According to Law no. 23 of 2013
In Law Number 23 of 2013 concerning the State Revenue and Expenditure Budget for Fiscal Year 2014, it explains the types of taxes imposed on international trade activities. In this Law, International Trade Tax is defined as all forms of state revenue whose source comes from import or import duties and export or export duties.
As one of the most dominant sources of state income, taxes are extended to the global sector by implementing an international tax system. This tax not only increases state income, but also increases international cooperation with other countries.
Types of International Trade Taxes
Trade taxes that are applied internationally are imposed on several trade activities such as exports, imports, bartering, consignment, packing deals, and border crossing. The types can be divided into two, namely:
1. Imported Goods Tax or Import Duty
This type of International Trade Tax is charged for all types of goods entering Indonesia with tax rates varying between 0% - 40%. The details are as follows:
|
Types of Imported Goods |
Tax Rates |
|
Strategic basic needs such as sugar, rice, defense equipment and machinery. |
0% - 5% |
|
Semi-finished goods |
5% - 20% |
|
Luxury goods and types of goods that are not included in strategic basic need |
>20% |
2. Export Goods Tax or Export Duty
This type of export duty tax is charged for all types of goods sent abroad. The provisions regarding export duties are regulated in PP Number 55 of 2008 and their implementation is contained in PMK Number 1/PMK.010/2022.
So, by understanding international trade taxes and its provisions, you as an import and export business player can design smarter financial strategies, minimize risks and increase business competitiveness in the global market.
But, remember you also need the views of experts in the field of taxation to effectively manage the tax aspects of your business. Consulting with Ideatax, managing your business taxes is carried out professionally and in accordance with applicable regulations.
Why Ideatax? We combine experience in consulting and tax authorities to provide comprehensive solutions for clients.
Please contact us for further service information.
