The Jakarta provincial government has officially designated parking services as taxable objects under Regional Regulation (Perda) Number 1 of 2024. This decision introduces a 10% tax rate on parking activities across Jakarta, reshaping the financial landscape of parking services.
Parking services, as defined in Article 2 of the regulation, fall under the category of Specific Goods and Services Tax (PBJT). Article 44 further specifies that PBJT applies to the sale, delivery, or consumption of certain goods and services, which include food and beverages, hotel services, and arts and entertainment.
“The PBJT rate for food and/or beverages, hotel services, parking services, and arts and entertainment services is set at 10%,” the regulation states, as quoted on Tuesday (19/11/2024).
Article 48 provides a detailed breakdown of taxable parking services. It covers the provision or operation of parking spaces as well as valet parking services.
This includes parking spaces managed by the government, the Jakarta provincial government, and other local authorities when their management is outsourced to private operators. Office-managed parking areas, which are exclusively for employees and charge fees, also fall under this regulation.
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However, the regulation includes specific exemptions for certain types of parking services. These exemptions consist of five key categories. Firstly, parking facilities directly managed by the government or the Jakarta provincial government are excluded from the tax.
Additionally, parking services operated by offices solely for their employees, facilities run by embassies, consulates, and foreign diplomatic missions under the principle of reciprocity, are exempt.
The regulation also excludes motor vehicle storage services with a capacity of up to 10 four-wheeled vehicles or 20 two-wheeled vehicles. Parking facilities that exclusively serve businesses trading in motor vehicles are similarly exempt from the tax.
This new framework highlights the government’s aim to streamline tax collection while clarifying which parking services are taxable and which are not. The regulation, while creating new revenue streams, also ensures fair treatment for specific sectors and entities.
