Yacht imports and transfers used to suffer 75% luxury tax – but now, yachts to be used for tourism business can be imported or transferred with no luxury tax. An exemption is needed prior to filing the customs import notice or title transfer. If not, the 75% tax applies. If paid, there is a way to get a refund in some circumstances.
An on-line application must be filed through the Director General of Tax and the applicant must prove that it is engaged in tourism activities. Annual income tax returns for the last two years and value added tax returns for the last three periods must be submitted.
Once submitted, the Director General of Tax will issue an electronic Luxury Tax Information Letter (SKB PPnBM). The SKB PPnBM is then submitted along with the customs import notice (PIB) to the branch of the Customs and Excise Service Office at the port of import.
Don’t forget that the tax invoice prepared by the importer or transferee MUST mention that a luxury tax has been approved.
And, be careful, if the Tax Office finds that the yacht isn’t being used for tourism during the four years following import or title transfer, the SKB PPnBM will be revoked and the 75% luxury tax will become due.
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