Tax incentives for international visitors to Indonesia

The Indonesian government will introduce tax incentives for international tourist visitors to Indonesia, effective April 1, 2010. To be put into operation at a number of Indonesia's international airports including Bali, the incentives will offer cash refunds for tax expenditures by tourist against certain pre-set limits. Foreign passport holders purchasing items during their visit to Indonesia can obtain a tax-refund on PPN (V.A.T) providing the merchandise is exported out of Indonesia, the value of the purchase(s) exceed Rp, 500,000 (US$50) and the purchase was made within a period of one month of their departure date. Rebates will be processed at special counters prepared at major international airports operated by the tax department.

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