Table of Contents for Tax Regulation PMK 11 of 2025, Discussing the Latest Rules on VAT

Kapanlagi.com - The government has just launched the Minister of Finance Regulation (PMK) Number 11 of 2025, which brings a breath of fresh air to the world of taxation, especially Value Added Tax (VAT). This regulation replaces PMK 121/2015 and introduces several significant changes that will affect the way taxes are calculated for business actors.

With PMK 11 of 2025, VAT calculation is now based on a specific tax base, and it provides legal clarity in determining VAT rates. Although the general VAT rate remains at 11%, there are several sectors and types of goods that will be subject to different rates, adjusted to market dynamics and the types of transactions that occur.

For business actors, both large and small, this change certainly poses a new challenge in calculating the taxes that must be paid, especially for transactions involving the delivery of certain goods and services. Now, it's time for them to delve deeper into these changes and adjust their accounting systems to align with the new regulations that will take effect on February 4, 2025.

1. What Is PMK 11 of 2025 and Its Purpose?

In a bold move to refine the taxation system, the government has just enacted the Minister of Finance Regulation (PMK) Number 11 of 2025, which replaces PMK 121/2015. This regulation brings a breath of fresh air in the calculation of value-added tax (VAT), with adjustments that are fairer and more precise for all parties.

One notable change is the reduction of the VAT rate for several types of goods and services that were previously subject to high rates, while the general rate is set at 11%. Interestingly, for certain transactions, such as free provisions or through intermediaries, the tax calculation is now based on 11/12 of the agreed selling price.

This step is taken to create legal certainty for business actors, as well as to ensure transparency in every VAT calculation, so that no sector feels burdened by unfair rates.

2. Changes to the Tax Base Provisions in PMK 11 of 2025

The Minister of Finance Regulation (PMK) 11 of 2025 comes with a new breakthrough that changes the way we view the tax base (DPP) in various transactions. Previously, the DPP was calculated based on the selling price or fair market value, but now there is a significant adjustment: tax will be calculated using 11/12 of the selling price or transaction value.

For example, for transactions involving the provision of goods free of charge, the tax imposed is no longer based on the full selling price, but rather 11/12 of the selling price after deducting gross profit.

This change certainly brings a breath of fresh air for business actors, as tax calculations become lighter and reduce the burden they have to bear. In addition, the adjustments for auction transactions also make tax calculations more accurate, providing additional benefits for business players.

3. What is the Impact of PMK 11 of 2025 on VAT Calculations?

The implementation of PMK 11 Year 2025 brings a breath of fresh air for entrepreneurs by simplifying the calculation of VAT. Now, the tax base (DPP) is more structured and clear, making the tax calculation process more efficient. Although the VAT rate remains at 11%, for certain specific transactions, the DPP is calculated in a more advantageous way, which is 11/12 of the selling price.

Previously, the tax calculation for goods or services provided free of charge was often complicated and confusing. However, with this new regulation, entrepreneurs can shift their focus from burdensome calculations to business development.

For example, for a transaction worth Rp5,000,000, the tax payable can now be lower compared to before, providing more benefits for business actors, especially those who frequently transact at lower values. This is a positive step that will encourage growth and innovation in the business world.

4. VAT Calculation with Specific Rates and Amounts Based on PMK 11/2025

PMK 11 of 2025 brings a breath of fresh air to the taxation world by overhauling the calculation of VAT and establishing special provisions for various goods and services.

Now, items such as agricultural products, used vehicles, as well as jewelry and gemstones are subject to varying VAT rates; for example, used vehicles are only charged 1.1% of the selling price, while the rate for jewelry depends on the type of transaction.

Not only that, the service sector also receives attention with clearer rates, such as in tourism services and advertising, where certain types of advertisements are charged a rate of 10% multiplied by 11/12 of the 11% VAT rate.

With these more detailed regulations, business actors can more easily calculate the taxes that need to be paid, reducing confusion, and creating a more efficient and fair taxation system for all parties.

5. The Role of PMK 11 of 2025 in Enhancing Tax Compliance

PMK 11 of 2025 is predicted to be a breath of fresh air for tax compliance in Indonesia, providing the much-needed clarity for business actors in understanding the basis for tax imposition and how to accurately calculate VAT.

With this change, entrepreneurs will no longer be trapped in the uncertainty that often disrupts tax calculations, especially related to certain goods and services transactions.

In addition, adjustments in the calculation of DPP and VAT rates are expected to give them the opportunity to focus more on business development without worrying about tax calculation errors.

The legal certainty offered by this PMK will enhance the confidence of business actors while reducing the risk of violations due to the ambiguity of previous regulations.

With the implementation of PMK 11 of 2025, Indonesia is taking further steps towards a more transparent and efficient tax system, which in turn will support healthier economic growth.

6. FAQ about PMK 11 Year 2025

1. What is PMK 11 Year 2025?

PMK 11 Year 2025 is a regulation that governs changes in the calculation of Value Added Tax (VAT), especially those using a tax base with other values.

2. How to calculate VAT with the new rate?

VAT is calculated at a rate of 11%, but some transactions use a tax base (DPP) calculated at 11/12 of the selling price or transaction.

3. What is the impact of PMK 11 Year 2025 on business actors?

PMK 11 Year 2025 provides legal certainty and facilitates entrepreneurs in calculating VAT, with clearer and more detailed rates and provisions.

(kpl/rmt)