Before you can import your goods into Indonesia, you will face the customs first. At customs, the official will check the completeness of your documents and taxes. Then how do you calculate the tax on imported goods in Indonesia?
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Like all other sovereign countries, Indonesia also levies taxes on some goods imported into Indonesia. You need to understand the types of import taxes in Indonesia and how to calculate them.
Types of Import Taxes in Indonesia
In order to calculate tax to import goods into Indonesia, you need to calculate all of the types of it. There are several types of taxes you need to know about in Indonesia, including:
1. Import Duty / Bea Masuk
First, Import Duty is a government tax levied on imported goods. In Indonesia, there are two systems for calculating it. Among them are calculations with specific rates (units) and advalorum rates.
Initially, you need to convert the currency value into Rupiah. Besides that, add the total cost of your goods along with the shipping cost and insurance. In addition, do not forget to check the percentage of import duty that will be charged on your goods.
This is how the import duty is calculated:
percentage of import duty x (Cost of Goods + freight + insurance)
2. Value Added Tax (VAT) / Pajak Pertambahan Nilai (PPN)
Apart from import duty, there is also VAT (Value Added Tax). VAT is a duty levied on the sale and purchase of goods and services carried out by individual taxpayers or companies.
To calculate VAT, you need to estimate it as follows:
(costs of goods + freight + insurance) x the percentage of VAT
3. Income Tax / Pajak Penghasilan (PPh)
What is more, income tax is a tax imposed on certain companies that conduct trade activities related to export, import or re-import.
Just like VAT, Income Tax is also calculated as follows:
(costs of goods + freight + insurance) x the percentage of Income Tax
Import Tax Calculation Procedures in Indonesia
Before calculating the import tax, make sure to know these first.
Know the HS Code of the Product to Import to Indonesia
In fact, knowing the HS code of the productis important. This is necessary because there are percentages of taxes that needs to be paid based on the HS code.
Look at the tax details.
Once you have found the HS code for your product, look at the tax column. See the percentage of taxes you will get charged from your import transactions.
Let’s look at a sample study case below.
Study case for calculating import tax in Indonesia
For this case, I will use the HS Code of the metal table as the picture below.
1. Calculating Import Duty
Ms. Clarissa wants to import 200 metal tables to Indonesia at a price of 150 USD / piece. With shipping cost of 2800 USD and insurance of 920 USD.
As shown in the picture above, the import duty rate for importing metal tables is 10%. With an exchange rate of 1 USD to Rupiah is Rp. 14,000,- , here is the calculation.
percentage of import duty x Total value
= 10 % X (Goods Value + freight + insurance)
= 10% x ((150 USD X 200 tables) + 2800 USD + 920 USD ) x Rp. 14.000
= 10 % x 33.720 X Rp 14.000
= Rp. 47.208.000,-
So, Ms. Clarissa needs to pay is Rp. 47,208,000, -. for import duty.
2. Estimating VAT
Now we will calculate the value added tax.
As calculated before, the total goods value (Goods Value + Freight + Insurance) of Ms. Clarissa metal table imports is Rp. 472,080,000.
Meanwhile, the import duty payable is Rp. 47,208,000, –
And for the importation of metal tables, there is a 10% charge VAT.
So, it can be calculated as follows:
(Total value + Import Duty) x VAT percentage
(Rp. 472.080.000,- + Rp. 47.208.000,-) x 10%
(Rp. 519.288.000,-) x 10%
= Rp. 51.928.800,-
Therefore, the VAT Ms. Clarissa needs to pay is Rp. 51.928.800,-
3. Determine the Income Tax
Subsequently, the next thing to calculate is the income tax
The percentage of income tax of imported metal tables to Indonesia is 10%. Then it can be calculated as follows:
(Total value + Import Duty) x percentage of Income Tax
(Rp. 472.080.000 + Rp. 47.208.000,-) x 10%
(Rp. 519.288.000) x 10%
= Rp. 51.928.800
In sum, the income tax she should pay is Rp. 51.928.800,-
4. Figure Out the Total Import Tax
Finally, the total tax Ms. Clarissa needs to pay is :
Import Duty + VAT + Income Tax
= Rp. 47.208.000 + Rp. 51.928.800+ Rp. 51.928.800
= Rp. 151.065.600,-
She is required to pay a total tax of Rp. 151,065,600 -.
There we have calculated the tax to import goods to Indonesia. Definitely, this is not an easy task to do.
Besides calculate it yourself, feel free to see our tax calculator as it is very simple and easy to use. You just have to input some details of your goods. In a second, you can get the result.
