Tax Consultant
Shipping Tax
in Gresik
Indonesian shipping companies operate under a distinctive final tax regime that differs significantly from standard corporate taxation. Domestic shipping lines are subject to PPh Article 15 final tax at 1.2% of gross revenue, while international shipping faces a 2.64% final rate — rates that replace regular corporate income tax entirely for qualifying operators. Beyond income tax, shipping companies must manage VAT on freight services (11% domestic, 0% export/import), customs duties on vessel imports, crew income tax across jurisdictions, and potential tax holiday incentives for new vessel investments under the national shipping development program. The interaction between final tax regimes, VAT on international freight, and import duty exemption facilities creates a specialized compliance environment that requires deep maritime industry knowledge. Arunika Consulting delivers tailored tax solutions for shipping companies navigating Indonesia's maritime tax landscape.
Local Context for Shipping Tax in Gresik
Rp 4.980.000
Operational-cost context for Shipping Tax businesses in Gresik.
KPP Madya Gresik
Compliance context is tied to the local tax administration area.
Cement & Building Materials, Petrokimia, Smelter & Manufacturing Berat
Connects Shipping Tax with related local sectors.
Tax Risk Profile: High Risk
See Other Perspectives
This topic is also discussed from akuntansi & teknologi perspective.
Tax Challenges for Shipping Tax
Domestic vs International Route Classification
Domestic shipping is subject to 1.2% final tax, while international shipping faces 2.64% — misclassification of mixed routes can lead to significant underpayment or overpayment.
International Freight VAT
Export freight is 0% VAT, import freight is subject to 11% VAT as the consignee's input tax — tracking VAT treatment across different shipping legs adds administrative complexity.
Tax Holiday Qualification
New vessel investments may qualify for 5-20 year tax holidays, but requirements around Indonesian flag registration, minimum tonnage, and pioneer route status are stringent and require careful documentation.
Crew Income Tax Across Jurisdictions
Ship crews working international routes face multi-jurisdiction tax obligations, requiring proper tax equalization policies and treaty application for foreign crew members.
Vessel Import Taxation
Importing vessels and spare parts involves customs duties, VAT, and PPh 22 import tax — while exemptions are available through Masterlist applications, the process is complex and time-sensitive.
Arunika Solutions
PPh 15 Final Tax Compliance
Management of 1.2% final tax for domestic shipping and 2.64% for international routes with complete supporting documentation, voyage records, and correct revenue allocation.
- Accurate final tax
- Timely reporting
- Audit-ready records
VAT Shipping Management
Correct tax invoice issuance for domestic freight (11%), exports (0%), and related shipping services, with proper reconciliation of input VAT across ports and routes.
- Correct invoice codes
- Optimal VAT credit
- Seamless compliance
Vessel Investment Tax Planning
Strategic advisory for tax holiday and tax allowance applications on new Indonesian-flagged vessel investments, including pioneer route qualification assessment.
- Maximum tax holiday
- Zero import duty
- Investment efficiency
International Crew Tax Management
Comprehensive PPh 21/26 management for Indonesian and expatriate crew with tax equalization policies, treaty application, and proper reporting for multi-jurisdiction voyages.
- Crew tax compliance
- Treaty benefits applied
- Expat tax handled
Related Regulations
Shipping Income Tax
1.2% final income tax for domestic shipping
Vessel Import Tax
Income tax on vessel and spare part imports
Shipping Tax Allowance
Tax allowance for national shipping fleet investment
Related Industries
Nearby Areas for Shipping Tax
Frequently Asked Questions
Frequently Asked Questions
What is the final tax rate for Indonesian shipping companies?
Under PPh Article 15, domestic shipping lines pay a final tax of 1.2% of gross revenue, while international shipping companies pay 2.64%. This final tax replaces the standard 22% corporate income tax, providing significant simplification. Requirements include a valid SIUPAL license and Indonesian-flagged vessels. Foreign shipping companies with a permanent establishment in Indonesia are also subject to the 2.64% final rate.
Can new vessel investments qualify for tax holidays?
Yes. The shipping industry qualifies as a pioneer sector under PMK-130/2020 for tax holiday incentives. Investments of at least IDR 500 billion may receive 50% tax reduction for 5 years, while investments above IDR 1 trillion may qualify for 100% tax holiday for 10-20 years. Requirements include Indonesian-flagged vessels, national company operation, and minimum tonnage thresholds.
How is VAT applied to international shipping freight?
Export freight services are subject to 0% VAT, meaning no output VAT is collected but input VAT on related expenses remains creditable. Import freight is subject to 11% VAT collected at the border, which the consignee can claim as input tax credit. Shipping companies must carefully document whether each freight contract covers domestic, export, or import legs to apply the correct VAT treatment.
What tax incentives are available for vessel imports?
Vessel imports by Indonesian shipping companies may qualify for import duty exemption (0%), VAT not collected, and PPh 22 import tax exemption through the Masterlist facility administered by BKPM and the Ministry of Transportation. The vessel must be used for commercial shipping, be Indonesian-flagged, and not be transferred within a specified period. The Masterlist application requires detailed technical and commercial documentation.
Do foreign shipping companies need to register for Indonesian tax?
Yes, foreign shipping companies operating routes to or within Indonesia are generally considered to have a permanent establishment (BUT) and must register for an NPWP. They are subject to PPh Article 15 final tax at 2.64% on gross revenue from Indonesian-source shipping income. Many tax treaties may reduce or eliminate this rate — treaty benefits should be verified before filing.
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