What Is Maclon Services: Here's The Explanation

What Is Maklon Services (image @ cookies_studio - Freepik)

YOGYAKARTA - Sometimes a person or a business entity makes products with their own brand, which is believed to have the ability to develop greatly. However, without qualified energy sources, and special knowledge, to realize this inspiration must be heavy. So what is macron services?

In the business world, there are companies that specialize in facilitating the manufacture of materials for clients who do not have the ability or production resources. This industrial business sector is called a maklon service.

Through the services of a maklon, a person or something business entity no longer needs to worry about creation factors, such as building factories, buying production equipment, and paying labor wages.

The maklon term comes from the Dutch language, which is "maakloon", which in English can be referred to as a manufacturing fee. The word maakloon after that was absorbed into Indonesian into maklon.

The requirements for maklon services include being stated in the Value Added Tax Law (VAT), Income Tax Law (PPh), Regulation of the Minister of Finance (PMK) No. 32/PMK. 010/2019, and PMK No. 141/PMK. 03/ 2015.

Referring to Article 2 Paragraph(4) PMK 141/PMK. 03/ 2015, which is interpreted as a macron service, namely:

"Services are provided in the context of completing a certain item whose work process is carried out by the service provider (sub-contracted), the specifications, raw materials, semi-finished goods, and/or auxiliary materials/assistments that will be partially or completely processed are provided by service users, as well as ownership of finished goods in service users."

The main maklon service has 2 identities. Initially, service users are required to provide specifications, raw materials, semi-finished goods, as well as/or auxiliary materials/assistments that will be partially processed or fully provided by service users. This is because the character of the industry that offers maklon services entirely only provides services for producing.

Second, ownership of finished objects made through maklon services lies in service users. This means that the marketing and sales rights are all held by maklon service users. Therefore, industries that produce cannot sell, or distribute it without a permit or convention first.

Tax Aspects In Maklon Services

Similar to the usual kind of service, maklon services are one type of taxable service (JKP). That is, the submission is subject to VAT levies. Not only that, as a business entity, the provider of maklon services also does not escape the obligation to pay PPh Article 23.

1. VAT

Create VAT, when referring to the new provisions in taxation, is the Law on Harmonization of Tax Regulations, up to the applicable VAT rate, which is 11%. However, there is a special treatment for macron services whose production results are used for export purposes, aka service users, located outside the customs area.

VAT facilities provided by the government are 0% VAT. Exports of macron services that receive 0% VAT rates are required to fulfill some of the requirements, including:

This 0% VAT rate is different from the VAT facility being acquired or the means of not being subject to VAT. The main comparison is that in the 0% VAT facility for the submission of BKP and/or JKP by taxable entrepreneurs (PKP), VAT is still owed.

That is, the submission is still subject to VAT, but given facilities in the form of imposition of 0% tariff. Consequently, PKP is still obliged to make tax invoices.

Not only that, PKP which carries out exports must report it in the VAT Period Notification Message (SPT). The macron service that obtains 0% VAT facility must create a tax invoice called the JKP export notification message. This notification message must be accompanied by an attachment in the form of an invoice, as a unit. This invoice, is a document whose treatment is equalized to the tax invoice.

2. PPh Article 23.

In return, in connection with maklon services, 2% of the total gross tax was cut, no VAT was listed. The gross amount defined is the total amount of income with the name and in whatever form is paid, is provided to be paid or the payment has matured.

An example of calculating PPh Article 23 for maklon services is the following. For example, PT ABC is binding on a contract with PT DEF to produce clothes with the brand PT ABC, sourced on models and specifications set by PT ABC.

In the contract, it was agreed that PT ABC would provide the main raw materials and bonus materials. The compensation agreed upon for the contract is Rp. IDR million, not listed for bonus material payments.

Until, the PPh Article 23 cut for the above transaction, namely, for payments made by PT ABC to PT DEF, Article 23 of PPh for maklon services of 2% multiplied by Rp. 100 million, is Rp. 2 million.

So after knowing what maklon's services are, see other interesting news on VOI, it's time to revolutionize news!