Search

Tax Glossary

BMAD (Anti-Dumping Import Duty)

Anti-Dumping Import Duty (BMAD) is an additional levy on imported goods whose export price is below the normal value in their country of origin and that cause material injury to a like domestic industry. Its legal basis is Article 23B of Law 17/2006 amending Law 10/1995 on Customs, with implementing rules in Government Regulation 34/2011. The Indonesian Anti-Dumping Committee (KADI) conducts investigations to confirm a dumping margin, injury, and causal link before the Minister of Finance fixes a rate by ministerial regulation (PMK). BMAD is calculated as a percentage of customs value (CIF) on top of the MFN duty. Rates are producer-specific and apply for a maximum of five years, subject to sunset review.

Tax Updates

PER-2/BC/2026 Overhauls Indonesia's Excise Goods Reprocessing and Destruction Rules, Effective 16 April 2026

Indonesia's Customs and Excise Directorate (DJBC) issued PER-2/BC/2026 as the new technical rule on excise refunds via reprocessing or destruction of excisable goods. The regulation revokes PER-34/BC/2013 and its amendments.

Tax Glossary

Cigarette Tax (Pajak Rokok)

Cigarette Tax (Pajak Rokok) is a regional levy in Indonesia imposed on cigarette excise at a single rate of 10 percent of the excise amount. Receipts belong to provincial governments and are further shared with districts and cities at a 70:30 ratio (districts/cities : province). The Directorate General of Customs and Excise collects it alongside cigarette excise from manufacturers and importers, then channels it to provincial regional general treasury accounts proportionally by population. The primary legal basis is Article 36 of Law Number 1 of 2022 on Financial Relations between the Central and Regional Governments (UU HKPD), with technical procedures in PMK Number 26 of 2026, effective 12 May 2026. PMK 26/2026 requires regional governments to earmark at least 50 percent of receipts, with 37.5 percent of the total mandated as contribution to the National Health Insurance Program (JKN).

Tax Glossary

Low-Risk PKP (PKP Berisiko Rendah)

A Low-Risk PKP (Pengusaha Kena Pajak Berisiko Rendah) is a Taxable Enterprise designated by Indonesia's Directorate General of Taxes as a low-risk profile and therefore entitled to advance refunds of excess VAT payments. The legal basis is Article 9(4c) of the VAT Law, implemented by PMK 28 of 2026, effective 1 May 2026. Eligible categories include public companies listed on the Indonesia Stock Exchange, state-owned and regional-owned enterprises, majority-owned BUMN subsidiaries, main customs partners (MITA), Authorized Economic Operators (AEO), registered manufacturers, large pharmaceutical wholesalers, certain medical device distributors, and consistent exporters of goods or services. The status is valid for 2 tax years and must be applied for through the Coretax system. The main benefit: VAT refunds are processed through document research instead of a full audit, with disbursement within one month of a complete application.

Tax Glossary

VAT (Value Added Tax / PPN)

VAT (Pajak Pertambahan Nilai / PPN) is a tax levied on every supply of taxable goods (BKP) and/or taxable services (JKP) within Indonesia's customs area. Governed by Law No. 8/1983 on VAT, last amended by Law No. 7/2021 (UU HPP). The standard VAT rate is 11% since 1 April 2022, rising to 12% from 1 January 2025. PPN is an indirect tax: the economic burden falls on the final consumer, while the registered taxpayer (PKP) acts as a collector, remitting the difference between Output Tax (PK) and Input Tax (PM) to the state.

Tax Guides

Indonesia Anti-Dumping Duty (BMAD) Guide: Legal Basis, Mechanism, and Calculation

BMAD is an additional import levy on goods sold below normal value that injure domestic industry. This guide covers legal basis, KADI investigation, how to calculate combined duties, and practical steps for importers.

Tax Updates

PMK 14/2026 Imposes Anti-Dumping Duties on BOPET Imports from India, China, Thailand

Indonesia's MoF imposes anti-dumping duties on BOPET imports from India, China, and Thailand. Rates between 2.6 and 7.1 percent apply from 4 April 2026 through 29 October 2029.

Tax Guides

Indonesia PPh Article 22 Guide: Types, Rates, Collectors, and Filing

Complete guide to Indonesia's PPh Article 22 income tax: legal basis, transaction types collected at source, designated collectors, tariffs, and how to file via Coretax DJP.

Tax Guides

Indonesia Cigarette Tax Guide: 10% Rate, Collection Mechanism, and JKN Allocation

Tax Updates

PMK 26/2026 Overhauls Indonesia Cigarette Tax Rules with 37.5% JKN Earmark

Indonesia's Minister of Finance has issued PMK 26/2026, replacing PMK 143/2023. The new rule keeps the 10% cigarette tax rate but tightens regional spending: provinces and districts must earmark at least 50% of receipts, with 75% of that share (or 37.5% of total) channelled to the National Health Insurance (JKN) program.

Tax Guides

Low-Risk PKP Guide: Criteria, Coretax Application, and the Accelerated VAT Refund

Low-Risk PKP status (Pasal 9 ayat (4c) UU PPN) lets a taxpayer claim VAT refunds through document research instead of a full audit. This guide covers eligibility, the legal basis, the Coretax application flow, a worked example, and a practical FAQ under PMK 28/2026.

Tax Guides

Indonesia VAT Tax Base (DPP) Guide: Types, Calculation, and Examples

The tax base (DPP) sits at the heart of Indonesia's VAT calculation. This guide walks through DPP types under the VAT Law and HPP Law, when "other value" DPP applies, the specific-amount mechanism, and worked examples for VAT-registered businesses (PKP).

Tax Glossary

Article 22 Income Tax (PPh 22)

PPh 22 (Article 22) is a tax collection on payments for goods supply and import activities, levied by government treasurers, certain business entities, and importers. Governed by Article 22 of the Income Tax Law and PMK No. 92/PMK.03/2019. Rates vary: 2.5% on general imports with an Importer Identification Number (API); 7.5% without API; 0.25% on certain industry raw material purchases; 0.45-1.5% on fuel station purchases, agricultural products, and others. PPh 22 is generally non-final and creditable.

Tax Guides

SP2DK Guide: How to Respond to Indonesia's Tax Clarification Letter After PMK 111/2025

Complete guide to Indonesia's SP2DK (tax clarification letter). Covers the legal basis, the three supervision categories under PMK 111/2025, the 14-day response window, the seven-day extension right, case examples, and how to respond through Coretax.

Tax Updates

Indonesia Reopens Status for Qualified Taxpayers and Low-Risk PKPs: 1-10 June 2026

PMK 28/2026 voids every Qualified Taxpayer and Low-Risk PKP designation issued under PMK 39/2018. Eligible taxpayers must reapply through Coretax between 1 and 10 June 2026 to keep the accelerated refund facility.

Tax Guides

Advance Tax Refund Guide under PMK 28/2026: Eligibility, Mechanism, and How to File via Coretax

PMK 28/2026 restructures advance refund procedures into three tracks: Qualified Taxpayer (KUP Law Art. 17C), Specific Requirements Taxpayer (KUP Law Art. 17D), and Low Risk PKP (VAT Law Art. 9(4c)). All applications go through Coretax and are processed via a review mechanism.