Ongoing Discussion on Income Tax and VAT in International Freight Forwarding Services

On 29 November 2017, EuroCham Transport and Logistics Working Group met to coordinate ongoing efforts on taxation for freight forwarding services. Previously, EuroCham has submitted joint recommendations on income tax for freight forwarding services to the Government’s Working Group IV and DG Tax, with the Indonesian Logistics and Forwarders Association (ALFI) and the Indonesian Association of Express Delivery, Postal, and Logistics (ASPERINDO). The ongoing joint assessment still need to be followed up considering until today there is no improvement on the implementation of policy which is based on Minister of Finance Regulation No. 141/2015.

The meeting also revises few points of the joint position papers with ALFI on VAT for International Freight Forwarding services in accordance with the latest regulation on Freight Forwarding Services, Minister of Transportation PM. 49/2017. Separately ALFI has started again advocacy efforts to the DG Tax. The final version of joint proposals with ALFI will also be delivered to the Government's Working Group IV, the Fiscal Policy Agency and the DG Tax.

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