Staff members are accredited as diplomatic staff hence they are exempted from Value Added Tax (PPN) for import or domestic purchase of taxable goods – excluding land and buildings - and services, provided the transaction value exceeds IDR 2,5000,000. To request VAT exemption for such transactions, international staff must be registered with a Tax Identification Number (NPWP).
For property rentals, staff members are also eligible to be exempted from VAT, provided the landlord is a registered company or is able to issue a valid tax invoice (faktur pajak), In such cases, the UN will be able to process a tax exemption for the VAT of the rent. This process on average will take approximately 3 months to complete as there are two different ministries involved in the process, Sekretariat Negara and BADORA.
For private landlords who cannot produce a tax invoice, UN will not be able to process a tax exemption as private landlords cannot charge VAT. Any income tax or withholding tax as a result of the rent shall be borne by the landlord.
Please liaise with your respective Administrative office prior to processing tax exemption.