Luxury Tax on Importing Yachts Regulation Indonesia

The government explained that the PPnBM relaxation on luxury import foreign yacht was intended to encourage the development of tourism activities, especially marine tourism.

We've been talking about this for years now...

Refer to earlier commercial Bali yacht rules here 20 November 2018

Luxury Yacht Tariff To Be Cut in 2019?

with further updates August of that same year:

Change of Tax Policy – Foreign Yachts & Alcohol

Here we are, 2020, and these regulations have officially been signed...

This new boating rule could make for interesting developments in Indonesia Yacht Tourism

How will this affect importing yachts to Bali; furthermore changing boat flag to an Indonesian yacht registration?

Will it effect local yacht tourism operators in Bali?

What is PPnBM (luxury import tax) and why does it matter?

The PPnBM relaxation on foreign imported yachts is laid out in Government Regulation (PP) No.61/2020 concerning taxable goods (BKP) which are classified as luxury (other than motorized vehicles) subject to PPnBM. Previously that levy was above 75% - easily detering anyone from important their yacht into Indonesia to operate commercially.

In the new boating regulation, the government explained that

"PPnBM relaxation on the yacht is aimed at encouraging the development of tourism activities, especially marine tourism. Considering that the yacht is a luxury BKP, so to encourage the marine tourism industry, the submission by the producer or the import of the yacht for the tourism business needs to be exempted from the imposition of PPnBM," wrote the explanation of PP No.61/2020 quoted by Bisnis.com, Tuesday (3 November 2020).

Of course, there are caveats and other circuitous legal wranglings; if the yacht is not used for tourism activities or is transferred to another party, then the yacht PPnBM will be considered a gap in payment and must be paid. The payment period is 1 month after finding a discrepancy in the allocation of the fiscal facility.

Further details such as:

Meanwhile, if within 1 (one) month the PPnBM payable is not paid or is underpaid, the Taxpayer (WP) will be subject to sanctions in accordance with the provisions of laws and regulations in the field of taxation.

Indonesia Yacht Tourism Regulations Legal Documents Snapshot:

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Category: Yacht Tourism, Gov't Policy

Date: 6 November 2020