Foreign Film Importers Owe Rp 30b in Import Tax1 min readReading Time: < 1 minute
Importers of foreign films owe Rp 30 billion ($3.4 million) of import tax on film royalties and could have to pay up to 10 times the owed amount, a customs official said on Thursday.
Customs audits on 1,759 films imported in the last two years showed the shortfall, which arose from importers not reporting their royalties.
“They owe Rp 30 billion in total, not including fines. Each importer could face fines ranging from 100 percent to 1,000 percent depending on how much they owe,” said Thomas Sugijata, customs and excise director general at the Finance Ministry.
Based on the tax law, importers pay 23.75 percent of the film’s customs value, including import tax, value added tax and income tax. Previously, royalties were not calculated because distributors argued that the amount would only be known after the film had been released.