Car Taxes in Indonesia
Find out about the different taxes for car owners in Indonesia...
Samsat (Sistem Administrasi Manunggal di bawah Satu Atap) is the government agency responsible for cars and roads. Car registration and the payment of car and road taxes take place at Samsat offices.
Only 20 percent of Indonesians own cars, so they are considered luxury items. Car dealerships are forced to pay high duties on imported vehicles which increases the price of new import cars.
Expatriates who wish to import a car into Indonesia pay 300 percent of the car's value in custom duties. The only exception is embassy and consulate staff. Only foreigners with residence visas can own a car in their own name.
There are two car taxes:
- Vehicle registration tax (also known as transfer of title tax)
- Annual vehicle ownership tax
These two taxes are not to be confused with VAT which is separate.
Vehicle registration tax / Transfer of title tax
Vehicle registration, or transfer of title tax (Bea Balik Nama) is a one-time tax and costs 10 percent of the sales price of the vehicle. In Jakarta, however, this tax can be up to 20 percent.
To transfer a car's title, Indonesians must show their national identity card (KTP), and foreigners their passport and residence visa (either KITAS visa or KITAP visa). After a change of ownership is processed, the owner is issued a title in their own name (Buku Pemilik Kendaraan Bermotor).
Along with the title, the owner is issued a Vehicle Registration Number (Surat Tanda Nomor Kendaraan). An annual fee is paid to re-register the number.
Annual vehicle ownership tax
The annual vehicle ownership tax (Pajak Kendaraan Bermotor) is about two percent of the vehicle's assessed value.
In Jakarta, people who own a second car are also subject to a progressive tax in a government bid to reduce the number of cars on the roads. The tax on a second vehicle is up to ten percent of its assessed value per year: the exact rate depends on the car's value.
Passenger vehicles with engines of more than four cylinders, as well as vehicles that weigh more than 1,500 Kg - for example SUVs - incur an additional surcharge.
The sale of a car, or a transfer of car ownership is subject to VAT, as of June 2011 it is ten percent of the selling price.
The Indonesian government has a road insurance fund which includes life insurance for traffic accidents. The annual fee is called the Compulsory Contribution Fund for Traffic Accidents or Sumbangan Wajib Dana Kecelakaan Lalu Lintas Jalan.
As of June 2011, the fee is approximately Rp150,000 a year.