Regulation Update
Government-borne STLG for Vehicles Extended, The Main Focus is For LCGC

Wednesday, 09 February 2022

Government-borne STLG for Vehicles Extended, The Main Focus is For LCGC

The government has extended the government-borne Sales Tax on Luxury Goods (STLG) facility for car purchases, which previously expired on 31 December 2021, until the tax period of September 2022.

Although it has been extended, the government has changed the object of the facilities which are now focused on low-cost and environmentally-friendly vehicles or Low-Cost Green Cars (LCGC).

This provision is contained in the Minister of Finance Regulation Number 5/PMK.010/22, which came into effect on 2 February 2022 and at the same time revoked the previous government-borne STLG provisions, namely PMK Number 31/PMK.010/2021 which was amended by PMK Number120/PMK.010/2021.

Based on the regulation, apart from referring to passenger capacity and cylinder contents, the provision of a government-borne STLG facility must also meet other criteria. Several additional criteria that were not included in the previous regulation were aspects of CO2 emission levels and fuel consumption.

Government-borne STLG For LCGC

Based on the criteria above, the government divides the provision of facilities into two types of vehicles.

The first type, for energy-efficient and affordable cars, aka LCGC, with the following criteria.

Number

Type of Vehicles 

Criteria

1

Spark Ignition Engine

  • Minimum fuel consumption of 20km/liter
  • Has a maximum CO2 emission level of 120 g/km (For a maximum cylinder capacity of 1,200 ccs)

2

Compression-Ignition Engine (diesel/semi-diesel)

  • Minimum fuel consumption of 21.8 km/liter, or
  • Has a maximum CO2 emission level of 120 g/km (For a maximum cylinder capacity of 1,500 ccs)    

The number of facilities provided will be layered for nine months, from the tax period of January to September 2022. The details are as follows:

  • In the January-March 2022 tax period, the amount of the incentive will be 100% of the value of STLG payable.
  • In the April-June 2022 tax period, incentives will be given at 662/3% of the STLG payable.
  • In the July-September 2022 tax period, the incentives provided are 331/3% of the STLG payable.

Government-Borne STLG for Non-LCGC

Meanwhile, the second type of vehicle that also received incentives are those with a passenger capacity of under 10 people and a maximum cylinder capacity of 1,500 ccs with the following specific criteria:

Number

Type of Vehicles

Criteria

1

Spark Ignition Engine

  • Fuel consumption above 15.5 km/liter, or
  • Has a CO2 emission level below 150 gr/km   

2

Compression-Ignition Engine (diesel/semi-diesel)

  • Fuel consumption above 17.5 km/liter, or
  • Has a CO2 emission level below 150 gr/km    

This type of vehicle previously has been included in the recipient of the facility. However, this time the incentive is only valid for three months, starting from the January-March 2022 tax period with an incentive amount of 50% of the STLG payable.

Other Criteria

To be able to get a government-borne STLG facility, both types of vehicles must meet several criteria, such as:

  1. The level of local components is at least 80% of the total components.
  2. The amount of the selling price (on the road price) with the following conditions:
  •  For types of environmentally friendly and low-cost vehicles, a maximum of IDR 200 million
  • For this type of vehicle with a passenger capacity of 10 people and a maximum cylinder capacity of 1,500 ccs, it is worth between IDR 200 million - IDR 250 million.

Making Tax Invoice and Realization Report are Mandatory

In addition to having to meet the specified criteria, in utilizing the government-borne STLG facility, the VAT-Registered Persons who produce and deliver the car is also required to make a Tax Invoice.

Tax Invoices must be made in accordance with applicable regulations, by including transaction code 01 and a description of the type of goods, the legal basis for providing facilities and the value of STLG payable.

The VAT-Registered Persons are also required to make a report on the realization of the government-borne STLG, by reporting the Tax Invoice that has been made in the VAT Periodic Tax Return and making a detailed list of vehicles through the website www.pajak.go.id.

Submission of the list of vehicle details is carried out no later than three working days after the end of the tax period.

If the VAT-Registered Persons do not make a tax Invoice and realization report, then they cannot take advantage of the government-borne STLG facility.
 



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