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Tax Incentives for Indonesian Visitors

Indonesian Lawmakers Considering VAT Refunds for Tourist Visitors.


Bali News:
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(7/15/2006)

The authoritative e-newsletterIndonesian Digest from Ibu Wuryastuti Sunario reports that Value Added Tax (VAT) refunds may soon be available for visitors shopping during their Indonesian holidays:

"In a bid to boost tourist arrivals to Indonesia, visitors may soon be given refunds on VAT on purchases made in the country, said Director General for Taxations, Darmin Nasution. Its application now only awaits the enactment on the Revised Bill on Taxations that is now before Parliament, reports the Kompas daily.

The Law provides that VAT refunds will be given on minimum purchases of Rp. 500,000 (approximately US$ 55) upon departure from designated airports, after passengers have filled in the necessary forms, attached with the appropriate receipts. Shops where forms are available will be identified by special signs. When the Bill is passed by Parliament, then follow-up details on procedures will be stipulated in a Decision by the Minister of Finance, said Darmin Nasution.

In the latest development, Parliament has returned the Bill to the Government for failure to follow the correct procedure, since the Bill was submitted by the Minister of Finance and not by the President as Head of Government. Presumably once the correct procedure is followed, then debates on the articles may proceed."



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