Procedures Tightened, Luxury Tax Incentives for Electric Vehicles Extended Until the End of 2025
Through Minister of Finance Regulation (PMK) Number 135 of 2024, the government has extended the STLG incentive for electric vehicles until December 31, 2025.
Previously, the government fully covered 100% of the STLG payable under this facility, which was set to expire on December 31, 2024, as stipulated in PMK Number 9 of 2024. With the issuance of PMK Number 135 of 2024, PMK Number 9 of 2024 is no longer in effect.
Read: Ministry of Finance Extends 0% Import Duty on Electric Vehicles Until 2025
Stricter Rules for CBU Electric Vehicle STLG Incentives
In addition to extending the validity period, the government has tightened the procedures for granting incentives, particularly for the import of fully built-up (CBU) electric vehicles.
From now on, every import declaration document required for the facility must be validated through the Indonesia National Single Window System (INSW).
As per previous regulations, CBU electric vehicle importers must meet two requirements to qualify for the incentive: submitting an import declaration document and providing a report on the realization of STLG borne by the government.
STLG Incentives for CKD Electric Vehicle Transfers
In addition to imported electric vehicles, this incentive also applies to the transfer of electric vehicles produced from Completely Knocked-Down (CKD) units.
The STLG facility for CKD vehicle transfers comes with several conditions, including:
- The VAT-registered person (PKP) selling the vehicle must issue a tax invoice under the regulations.
- The PKP seller must also submit a report on the realization of STLG borne by the government.
The tax invoice issued for CKD electric vehicle transfers must include transaction code 01, details such as brand, type, variant, and chassis number, along with the statement: "STLG borne by the government in accordance with PMK No. 135 of 2024."
Meanwhile, the realization report for government-borne SLTG on CKD electric vehicles can be in the form of a tax invoice reported in the VAT return by the PKP.
|
No |
Transaction |
Requirement |
Government-borne STLG |
|
1 |
Import of CBU Electric Vehicles |
|
100% |
|
2 |
Transfer of CKD Electric Vehicles |
|
100% |
Cancellation of STLG Facility
If the requirements are not met, taxpayers will not be able to utilize the STLG facility. For example, if an importer of CBU electric vehicles does not use the import declaration as required or fails to report the realization.
Similarly, PKP transferring CKD electric vehicles will not be able to access the facility if they do not issue the tax invoice according to the regulations or fail to submit the realization report. In such cases, the import or transfer of the electric vehicle will still be subject to STLG as per the applicable provisions. (ASP/KEN)
