Background
At the end of 2024, the Minister of Finance of the Republic of Indonesia issued the Minister of Finance Regulation (Peraturan Menteri Keuangan / PMK) Number 131 of 2024 addressing Value-Added Tax (VAT) treatment on imports of taxable goods, delivery of taxable goods and services, and the utilization of intangible taxable goods from outside the customs area within the customs area. This regulation includes exceptions for calculating VAT using alternative tax bases, such as other values and certain rates detailed in a separate PMK.
The government issued PMK Number 11 of 2025 to provide legal certainty in VAT calculations, outlining provisions on using other values as a tax base and certain rates.
Summary of the Regulation
This regulation sets guidelines for using other values as a tax base and certain VAT rates.
Other values used as the tax base are set as follows:
For personal use of taxable goods and/or services: 11/12 of the selling price or replacement value after deducting gross profit.
For gratuitous provision of taxable goods/services: 11/12 of the selling price or replacement value after deducting gross profit.
For feature film delivery: 11/12 of the estimated average revenue per film title.
For taxable goods in the form of inventory/assets not initially intended for sale, remaining at the time of company dissolution: 11/12 of the fair market value.
For taxable goods delivery through intermediaries: 11/12 of the price agreed between the intermediary and the buyer.
For taxable goods delivery through auctioneers: 11/12 of the auction price.
For gratuitous provision of taxable goods in the form of assets not initially intended for sale: 11/12 of the fair market value.
For labor provision services delivery not meeting specific criteria and the bill is detailed in the tax invoice: 11/12 of the total bill requested, or that is supposed to be requested.
For advertising services delivery: 11/12 of the total bill requested.
For intangible taxable goods utilization in the form of imported feature films: 11/12 of IDR 12,000,000 per copy.
For taxable goods delivery in the form of phone credit and new SIM card: 11/12 of the value billed.
For taxable service delivery in the form of payment transaction services related to token distribution: 11/12 of the commission or administration income.
For certain Liquefied Petroleum Gas (LPG) delivery: calculated using a specific formula below.
Where t is the applicable tax rate
Certain VAT rates are set as follows:
For certain LPG deliveries at the agent's delivery point, the VAT rate is 1.1/101.1 of the difference between the agent's selling and retail prices.
For certain LPG deliveries at the depot delivery point, the VAT rate is 1.1/101.1 of the difference between the depot selling and retail prices.
For certain agricultural products (as per PMK 64 of 2022), the VAT rate is 1.1% of the selling price.
For used motor vehicles (as per PMK 65 of 2022), the VAT rate is 1.1% of the selling price.
For gold jewelry deliveries by a taxable gold manufacturer to another gold jewelry manufacturer or trader, the VAT rate is 10% multiplied by 11/12 of the VAT rate.
For gold jewelry deliveries by a taxable gold manufacturer to the end consumer, the VAT rate is 10% multiplied by 11/12 of the VAT rate.
Affected Regulations
PMK Number 75/PMK.03/2010 regarding Other Values as the Tax Base (State Gazette of the Republic of Indonesia Number 158 of 2010) as amended by PMK Number 121/PMK.03/2015 regarding the Third Amendment to PMK Number 75/PMK.03/2010 regarding Other Values as the Tax Base (State Gazette of the Republic of Indonesia Number 950 of 2015).
PMK Number 102/PMK.011/2011 regarding Other Values as the Tax Base on the Utilization of Intangible Taxable Goods from Outside the Customs Area within the Customs Area for Imported Feature Films and Imported Feature Films Delivery, as well as the Article 22 Income Tax Collection Base on Import Activities of Imported Feature Films (State Gazette of the Republic of Indonesia Number 405 of 2011).
PMK Number 6/PMK.03/2021 regarding Calculation and Collection of Value-Added Tax and Income Tax on Delivery/Income in Connection with the Sale of Phone Credits, New SIM Cards, Tokens, and Vouchers (State Gazette of the Republic of Indonesia Number 42 of 2021).
PMK Number 173/PMK.03/2021 regarding Procedures for Payment, Settlement, and Administration of Value Added-Tax or Value-Added Tax and Luxury-Goods Sales Tax on Taxable Goods and/or Taxable Services Delivery from and/or to Free Trade Area and Free Ports (State Gazette of the Republic of Indonesia Number 1316 of 2021).
PMK Number 62/PMK.03/2022 regarding Value-Added Tax on Certain Liquefied Petroleum Gas Delivery (State Gazette of the Republic of Indonesia Number 362 of 2022).
PMK Number 63/PMK.03/2022 regarding Value-Added Tax on Tobacco Products Delivery (State Gazette of the Republic of Indonesia Number 363 of 2022).
PMK Number 66/PMK.03/2022 regarding Value-Added Tax on Subsidized Fertilizer Delivery for the Agricultural Sector (State Gazette of the Republic of Indonesia Number 366 of 2022).
PMK Number 79 of 2024 regarding Tax Treatment in Joint Operations (State Gazette of the Republic of Indonesia Number 769 of 2024).
