Transport and Logistic Working Group Meeting with Directorate General of Taxation

On 17 May 2019, few representatives of the EuroCham Transport and Logistic Working Group met with Mr. Rusdi Yanis, Section Head of Tax Regulation I of Directorate General of Tax. The meeting took place at EuroCham office and discussed the newly implemented Minister of Finance Regulation No. 32/PMK.010/2019. Under this new regulation the government applies an expansion of the types of services whose exports can be subjected to zero percent VAT. One service that also receives this tax incentive is freight forwarding, which in the context of export can also be zero rated if complying to the stipulated requirements to prove the transaction is based on a written agreement, and that a prove of payment can be presented to the Directorate General of Tax. However, there are still remaining challenges for the implementation of this new tax facility by global logistics companies, especially related netting mechanism normally adopted by multinational companies to prove their transactions. During this meeting, EuroCham encouraged the Directorate General of Tax also to organize a separate socialization event to a larger audience within EuroCham member companies.

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