Minister of Finance Regulation of Republic of Indonesia Number 172/PMK.010/2016 dated 14 November 2016
LAND AND BUILDING TAX REDUCTION IN MINING/GEOTHERMAL OPERATION IN THE EXPLORATION STAGE
Taxpayers of the payable Geothermal Land and Building Tax (PBB) listed on Notification on Tax Due (SPPT) that is still in the Exploration Stage can be granted a reduction of Land and Building Tax (PBB). The Land and Building Tax (PBB) reduction is granted 100% (one hundred percent) of the payable of Geothermal Land and Building Tax (PBB). Taxpayers that can be granted the reduction of Geothermal Land and Building Tax (PBB) are the Taxpayers that meet the following conditions:
- having a Geothermal License after the enforcement of Law No. 21 year 2014 on Geothermal;
- submitting the Tax Object Notification Letter (SPOP); and
- attaching a letter of recommendation from the Minister that conducts governmental in the field of geothermal that states the object of the Geothermal PBB is still in Exploration Stage.
The reduction of PBB each year for maximum period of five (5) years, commencing from the Geothermal license is published.
The period can be extended for a maximum period of 2 (two) years and can be provided as long as there has been a recommendation letter from the Minister of governmental affair that conduct business activities in the field of geothermal that states the object of the Geothermal Land and Building (PBB) is still in Exploration Stage.
Tax Office will issue the Notification on Tax Due (SPPT) that states the amount of Land and Building Tax (PBB) reduction. The inclusion of the reduction amount in Notification on Tax Due (SPPT) is treated as proof of Land and Building Tax (PBB) reduction granted.
Land and Building Tax (PBB) reduction is granted to Notification on Tax Due (SPPT) starting in Fiscal Year 2017.