Hello, is there anything we can help?
The Minister of Finance, Sri Mulyani, said that until the first semester of last year, the government had provided import duty incentives amounting to 2.39 trillion for importation activities in bonded zones (Kontan, 2023). In addition to import duties, there are value-added tax incentives and import tax incentives that become the appeal of the bonded area. In this article, we will review further issues related to bonded zones, especially in taxation.
Three regulations that become the law for the implementation of bonded zones are Government Regulation Number 32 of 2009 as amended by Government Regulation Number 85 of 2015; Minister of Finance Regulation Number 131/PMK.04/2018 as amended by Minister of Finance Regulation Number 65/PMK.04/2021; and Director General of Customs and Excise Regulation Number PER-19/BC/2018. The consideration of PMK 65 of 2021 mentions that the government's objective in implementing bonded zones is to increase the competitiveness of domestic industries, maintain the investment climate, increase employment, and stimulate national economic recovery.
For information, a bonded area is a bonded storage provider to store imported goods and/or goods originating from other places within the customs area to be processed or combined before being exported or imported for use. Meanwhile, bonded storage is a building, place, or area that meets certain requirements and is used to store goods for a specific purpose by obtaining a suspension of import duty. Thus, a bonded area is a collection of bonded stockpiles organized by bonded area entrepreneurs.
Bonded Zone Facilities
There are two VAT facilities provided for the entry of goods into bonded zones:
- The VAT facility uncollected on the import or delivery of taxable goods to the Bonded Zone Entrepreneur, or Pengusaha Kawasan Berikat (PDKB), which is imported into the Bonded Zone.
- The VAT facility uncollected on the import or delivery of taxable goods to foreign tax subjects, where the goods are imported into the Bonded Zone for further processing and then exported.
In addition to value-added tax facilities, there are other facilities in the form of suspension of import duties and excise exemptions provided for the entry of goods in bonded zones.
For the import of goods from outside into the customs area, tax facilities are provided in the form of suspension of import duties, excise exemptions, and uncollected taxes in the context of imports, such as import VAT and Income Tax Article 22 on imports.
Furthermore, the importation of goods from bonded storage areas and special economic zones to bonded zones is subject to taxation facilities in the form of suspension of import duties, excise exemptions, tax exemptions in the context of importation, and VAT and STLG exemptions.
Goods that receive bonded zone facilities
However, not all goods receive taxation facilities. Only certain goods receive taxation facilities in bonded zones, including the following:
- Goods used as raw materials, auxiliary materials, packaging and packaging aids, sample goods, capital goods, fuel, office equipment, and/or for the purposes of research and development of companies in Bonded Zone;
- Finished or semi-finished goods to be added with production results;
- Goods that are reimported into bonded zones from temporary export activities;
- Goods resulting from production that are reimported; and
- Goods produced in other bond zones.
Implementation of bonded zone
Bonded zone is organized by the organizers or bonded zone entrepreneurs, not the government. The government, as a regulator, is only authorized to regulate and issue licenses for the bonded zones implementation.
There are specific criteria for locations of bonded zones. Bonded zones must be located in industrial or cultivation areas in accordance with government plans. In addition, the bonded area must be at least 10,000 m3 in one stretch.
Bonded zones can be organized by more than one organizer. The determination of bonded zones and the granting of bonded zone licenses are given by the head of the customs regional office or the head of the customs service office on behalf of the Minister of Finance.
There are several requirements that must be met by companies that intend to become bonded area organizers, including:
- Having a business identification number;
- Have a trade business license, area management business license, industrial business license, or other license related to the implementation of the area;
- Have valid status in the results of confirmation of taxpayer status (KSWP);
- Have proof of ownership or control of an area, place, or building that has clear boundaries along with a map of the location of the place and a layout plan/plan that will be used as a Bonded Zone; and
- Has been confirmed as a taxable entrepreneur.
The application for the bonded zones implementation is submitted through the national single window which has been integrated with the online single submission. If you have questions, suggestions or require further assistance related to bonded zones, Ideatax is ready to assist you.
Related Regulations
- Government Regulation Number 32 Year 2009 as amended by Government Regulation Number 85 Year 2015;
- Minister of Finance Regulation Number 131/PMK.04/2018 as amended by Minister of Finance Regulation Number 65/PMK.04/2021;
- Director General of Customs and Excise Regulation Number PER-19/BC/2018
