Feb

08

New Value Added Tax (VAT)

The COVID-19 pandemic has left lasting damage, not only to public health, but to the economy as well. A lot of effort will be required to recover both aspects, both by the government and by individuals. One of the steps that the government has taken to accelerate economic growth during this pandemic is issuing a new tax regulation in the form of Law No. 7 of 2021 regarding Tax Regulation Harmonization (Law No. 7 of 2021) on 29th October 2021 which revised many tax provisions, including the Value Added Tax (VAT) which was previously regulated in No. 42 of 2008 regarding Third Amendment to Law No. 8 of 1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxury Goods (Law No. 42 of 2008).

The previous VAT provision as stipulated in Law No. 42 of 2008, was 10%, which has been used since its issuance in 2008. However, Law No. 7 of 2021 revised the provision to 11%, which will come into effect starting in 1st April 2022 and 12% later on 1st January 2025. According to Article 4, the Value Added Tax objectives are:

  1. delivery of Taxable Goods within the Customs Region carried out by business actors;
  2. import of Taxable Goods;
  3. delivery of Taxable Services within the Customs Region carried out by business actors;
  4. utilization of Intangible Taxable Goods from outside the Customs Area inside the Customs Area;
  5. utilization of Taxable Services from outside the Customs Region within the Customs Area;
  6. export of Tangible Taxable Goods by Taxable employers;
  7. export of Intangible Taxable Goods by Taxable employers; and
  8. Export of Taxable Services by Taxable Business actors.

The VAT is calculated by multiplying the tariff by the Tax Imposition Basis including Selling Price, Replacement, Import Value, Value Export, or other value.

During these times, there are many more adjustments in many fields that the government will make. We are always up to date and ready to help you with whatever issue you have. If you need help or consultation, feel free to contact us via info@schinderlawfirm.com.

Author: Suryani Lin

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Dear valued Visitor,

Data is a valuable currency in this new world. In the midst of digital transformation, the Indonesian government has taken the final decision to pass the Pelindungan Data Pribadi (PDP) Bill by September 2022. The PDP Law applies to all businesses established in Indonesia and puts the consumer in control. The task of complying with this regulation falls upon businesses.

The PDP Law affects a variety of business operations, including how your sales team prospect and how marketing initiatives are managed. Businesses have had to reassess their business procedures, applications, and forms. Additionally, all businesses that work with personal data should designate a Data Protection Officer (DPO) or data controller to oversee PDP compliance.

In line with this spirit, it gives us great pleasure to announce and share with all our esteemed clients and business associates that Schinder Law Firm is prepared to assist your company to understand the impacts of the Personal Data Protection Law (PDPL) and take the required measures to comply with the law. Our Privacy, Data Protection, and Cybersecurity practice group is a pioneer in providing data privacy law services in Indonesia. Personal data protection services include but are not limited to:

  • Assessing the existing systems, processes, and controls, etc.
  • Providing provide gap assessment on the existing systems, processes, and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDP Law
  • Developing policies, best practices, and procedures
  • Advising on the security of personal data and managing data breaches
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role, and responsibilities of a data protection officer
  • Advising on cross-border transfers of personal data
  • Carrying out data protection impact assessments and data protection audits
  • Recommending other necessary corrective actions in order to comply with the PDP Law
  • Training on the PDP Law tailored to clients’ businesses

We look forward to many more opportunities in the year ahead with your continued support and trust. For consultation, please send us a WhatsApp or Email.

Warmest regards,
Naz Schinder
Managing Partner

Keep Up with the New Law in Indonesia: Personal Data Protection

  • Assessing the existing systems, processes and controls, etc.
  • Providing provide gap assessment on the existing systems, processes and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDPL.
  • Developing policies, best practices and procedures.
  • Advising on security of personal data and managing data breaches.
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role and responsibilities of a data protection officer.
  • Advising on cross-border transfers of personal data.
  • Carrying out data protection impact assessments and data protection audits.
  • Recommending other necessary corrective actions in order to comply with the PDPL.
  • Training on the PDPL tailored to clients’ businesses.
Privacy, Data Protection and Cyber Security
We help our clients to understand the impact of the Personal Data Protection Law (PDPL) on their companies and take the required measures to comply with the law.