Land and Building Tax Reduction in Mining/Geothermal Operation in the Exprolartion Stage
| MoF Regulation No. 213/PMK.03/2016 dated 30 December 201612/30/20160 Comments0 CommentsMinister of Finance Regulation of Republic of Indonesia Number 172/PMK.010/2016 dated 14 November 201611/30/20160 CommentsLAND 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); andattaching 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. 0 CommentsGovernor of Jakarta Special Capital Region Regulation No. 193 Year 2016 dated 13 October 201610/31/20160 Comments100% EXEMPTION ON DUTY ON TRANSFER OF LAND AND BUILDING RIGHTS DUE TO SALE AND PURCHASE OR GRANTING THE FIRST RIGHT AND/OR 0% TAX IMPOSED ON DUTY ON TRANSFER OF LAND AND BUILDING RIGHTS DUE TO INHERITANCE OR GRANTS WITH MAXIMUM TAX OBJECT SALE VALUE OF RP 2 BILLIONS Governor delegate his authority to grant 100% exemption on duty on transfer of land and building rights (BPHTB) due to sale and purchase or granting the first rights and/or 0% tax imposed on transfer of land and building rights due to inheritance or grants with maximum tax object sale value of Rp 2 billions to individual taxpayer to service head or his appointed official. Only individual taxpayer may obtain this tax facility with following condition:For overdue BPHTB which has not been paid in fiscal year that application is submitted.For one land and/or building object valid once in lifetime for each individual taxpayerIndonesian citizen who domiciled in Jakarta at least in 2 consecutive years since issuance date in his ID card Application for 100% exemption should be attached with following documents:Statement consist of citizenship ID number (NIK), name and address of taxpayer, address of tax object and description of applicationcopy of ID cardcopy of taxpayer registration number (NPWP)a statement stated taxpayer never owned land and/or building due to sale and purchase or obtained new rights on land and/or building legalized by notary or land deed official (PPAT)proxy letter if delegate to other personcalculation of BPHTB stated in local tax payment form (SSPD) of BPHTBfor sale and purchase transaction should be attached with original notary or PPAT deed on transfer of rights, copy of land certificate and copy of land and building tax annual tax return and its payment form.For obtaining the first rights should be attached with statement of granting first rights from city land administration office, other written documents from government institution relating to conversion of land and/or building rights and copy of land and building tax annual tax return and its payment form. Application for 0% tax imposement should be attached with following documents:Statement consist of citizenship ID number (NIK), name and address of taxpayer, address of tax object and description of applicationcopy of ID cardcopy of taxpayer registration number (NPWP)a statement stated taxpayer never owned land and/or building due to inheritance or grants legalized by notary or PPATproxy letter if delegate to other personcalculation of BPHTB stated in local tax payment form (SSPD) of BPHTBstatement of inheritance or grantsoriginal notary or PPAT deed on transfer of rights due to inheritance or grantsstatement of granting rights due to inheritance from city land administration officecopy of land certificatecopy of land and building tax annual tax return and its payment form. Application and all its attachments will be reviewed by service head or its official. Incomplete documentation will be returned with description of incomplete documents. Site visit may be conducted to verify validity with its corresponding documents. When there is inconsistency with documentation, application will be denied. When all documentation are valid and complete, service head will issue exemption letter and validate SSPD BPHTB. Service head must issue decision letter within 3 days after application letter was received, otherwise it will be considered approved. Unpaid BPHTB before the effective date of this regulation may be granted exemption as long as all requirements under this regulation are met. Should any evidence found within 5 years after exemption date which violated this regulation, exemption letter may be cancelled and BPHTB will be payable by issuing local tax underpayment assessment letter (SKPDKB). Taxable base is tax object sale value on the year such information are found. This regulation will be effective on its promulgation date. 0 CommentsGovernment Regulation No. 40 Year 2016 dated 17 October 2016 10/31/20160 CommentsINCOME TAX ON REVENUE FROM TRANSFER OF REAL ESTATE UNDER PARTICULAR COLLECTIVE INVESTMENT CONTRACT SCHEME Revenue received by taxpayer from transfer of real estate to special purpose vehicle (SPC) or collective investment contract (KIK) under particular KIK scheme are subject to final income tax. Particular KIK scheme is investment KIK scheme in form of real estate investment trust (DIRE) with or without SPC. Income tax rate for such transfer is 0.5% from gross transfer amount which consist of:Total amount received by taxpayer from SPC or KIK for non related party transactionTotal amount should be received by taxpayer from SPC or KIK for related party transaction For non related party transactions:Such Income tax payable should be paid by taxpayer before legal documents are signed by official.Official can only sign legal documents when income tax already paid by taxpayer and below requirements are settled by taxpayer.Taxpayer who transfer the real estate must submit notification letter to head of tax office regarding such transaction attached with following documents:Copy of effective statement on DIRE registration issued and legalized by Financial Service Authority (OJK)Statement from OJK which stated taxpayer transfer the real estate to SPC or KIK under particular KIK schemeStamped duty statement which stated taxpayer transfer the real estate to SPC or KIK under particular KIK schemeCopy of tax payment form (SSP) on revenue from real estate transferObtain tax clearance from tax office 4. Official who sign legal documents must report to DGT regarding this transaction. Further procedures for this transaction will be issued by Minister of Finance. This regulation will be effective on promulgation date. 0 CommentsGovernment Regulation No. 41 Year 2016 dated 17 October 201610/31/20160 CommentsINCOME TAX ARTICLE 21 TREATMENT ON INCOME RECEIVED BY EMPLOYEE FROM EMPLOYER WITH PARTICULAR CRITERIA Employee who receive income from employer with particular criteria with maximum amount of Rp 50 millions in one year are subject to 2.5% final income tax article 21. Employer with particular criteria is:Corporate taxpayer who engage in footwear and/or textile and textile product industryEmploy minimum 2.000 employeesBear income tax article 21 for its employeesExport at least 50% of its last year total salesHave mutual employment agreementRegister its employees under healthcare and social security agency and workers social security agencyDoes not obtain or utilize income tax facility under article 31A tax law no. 36 year 2008 or article 29 government regulation no. 94 year 2010. Employees who may get such facility must be listed in periodic income tax return article 21 and/or 26 period July 2016 and January 2017. When any employees receive more than Rp. 50 millions within one year, the excess amount will be subjected to 15% final income tax up to December for the corresponding year. Such employees who receive more than Rp. 50 millions are subject to income tax article 21 article 17 tax law no. 36 year 2008 for the following fiscal year. Final income tax article 21 will be valid for tax period from July 2016 to December 2017. Further regulation regarding this regulation will be issued by Minister of Finance. This regulation will be effective on its promulgation date. 0 CommentsGovernment Regulation No. 34 Year 2016 dated August 8, 2016 8/31/20160 CommentsINCOME TAX ON INCOME FROM TRANSFER OF LAND AND/OR BUILDING RIGHTS AND SALE PURCHASE AGREEMENT ON LAND AND/OR BUILDING ALONG WITH ITS AMENDMENT Income from transfer of land and/or building rights or sale purchase agreement are payable to final income tax. Including transfer of rights are sales, swap, grants, in heritage or any other kind of transfer. Income from sale purchase agreement are seller whose name is in agreement for the first time it was signed or buyer whose name is in the agreement before any amendments. Income tax rate for transfer of rights are as follow:2.5% from gross amount for taxpayer in property business except for transferring basic house or basic flat;1% from gross amount for taxpayer which business are transferring basic house or basic flat;0% for transferring land and/or building to government, special assignment state owned enterprise or regional state owned enterprise.Gross amount means:Amount based on official decision for transferring to governmentAuction amount for transferring in auctionFair value when such transfer involving related partiesActual amount received for sale purchase excluding related parties transactionMarket value for transferring through swap, rights release, rights transfer, grants, in heritage or any other transfer transactions.For sale purchase agreement, gross amount means:Actual amount received for non related parties transactionsFair value for related parties transactionsCriteria for basic house or flat are the same as criteria for such properties which exempted from VAT. Taxpayer, either individual or corporate, who receive income from rights transfer of land and/or building, must pay the income tax before any legal documents such as deed, deal, agreement or minutes of auction is signed by official. Official will only sign the legal document after receiving copy of tax payment form or any equal document, and must send monthly report of signed documents to DGT. Such official including land deed official, auctioneer or other official who has authorization by rule and regulation. Taxpayer in property business, income tax will be payable at the time of payment, either partial or whole, by buyer. Such payment including down payment, interest, charges and any additional payment made by buyer and must be paid at the latest 15 days after end of month. Taxpayers who transfer the rights to government, income tax will be collected by state treasurer and then deposit it to the bank by using tax payment form on behalf of taxpayer. State treasurer must submit land and/or building transfer to DGT. Taxpayer whose name is recorded in sale purchase agreement before any amendment must pay the income tax and give copy of tax payment form to the seller, so seller may sign the legal document. Seller must report the amendment to DGT. Exempted from income tax payment are:Individual whose income is below non taxable income and gross transaction amount is under IDR 60 millions which not part of partial transaction.Individual who transfer land and/or building as grant to blood related family member, religious, education and social entity including foundation, cooperatives or individual who run small and micro business, as long as such grant is no related to business activity, jobs, ownership or controlling interest between the parties.Enterprise who transfer land and/or building as grant to religious, education and social entity including foundation, cooperatives or individual who run small and micro business, as long as such grant is no related to business activity, jobs, ownership or controlling interest between the parties.Transfer of inheritance assets.Enterprise which transfer land and/or building as result of merger, acquisition or business expansion which got minister of finance approval to use book value.Taxpayer who transfer building in term of build operate transfer agreement, build transfer operate or utilize government land and/or buildingTaxpayer who is not a tax subject for transferring land and/or building.Ministry of Agrarian and layout plan /head of national land will only issue decision letter of granting rights, acknowledgement rights and transfer rights, after receiving tax payment form except for the above mentioned exemption. Any official or seller who does not comply this regulation will get sanction according to rule and regulation. Detail procedures for this regulation will be set by Minister of Finance. At the effective date of this regulation, all regulation under Government Regulation No. 48 year 1994 which last amended by Government Regulation No. 71 year 2008 are still valid as long as has no contradiction to this regulation. Government Regulation No. 48 year 1994 which last amended by Government Regulation No. 71 year 2008 is no longer valid. This regulation will be effective 30 days after its promulgation.0 CommentsDGT Circular Letter No. SE-30/PJ/2016 dated 15 July 20167/31/20160 CommentsTAX AMNESTY IMPLEMENTATION GUIDELINES Preparation for implementing tax amnesty 1. Regional tax office and tax office will set receiving and follow up of statement of assets declaration for tax amnesty team. 2. Registration and granting Taxpayer Registration Number (NPWP). a. Individual or corporate taxpayers who submit statement of declaration must have NPWP. b. They must register to tax office when they do not have NPWP. c. When taxpayers get deleted status (DE), they must reactivate their NPWP. d. When taxpayers get non effective status (NE), tax office must reactivate their NPWP. e. Service section in tax office will follow up the reactivation process or issuance of new NPWP. f. When taxpayer register for NPWP in particular location in Indonesia, tax officer may issue new NPWP or reactivate their NPWP. 3. Updating list of taxpayer which undergoing a preliminary evidence examination or investigation. a. When regional tax office conduct a preliminary evidence examination or investigation the team must prepare and submit list of such taxpayer to law enforcement directorate at the time of notification letter for examination sent to taxpayer, or issuance of investigation warrant or notification letter from prosecutor regarding a complete criminal case investigation result. b. When law enforcement directorate conducts a preliminary evidence examination or investigation the team must prepare list of such taxpayer which undergoing a preliminary evidence examination or investigation or investigation file is complete. c. Law enforcement directorate must record or update list of such taxpayer. 4. Updating collection and non current status. a. Directorate of examination and collection must submit list of taxpayer under collection to directorate of information and communication technology transformation (TTKI) at issuance of Minister of Finance decision letter regarding exit prohibition or revocation of such letter or detention warrant or revocation of detention warrant. b. Directorate of TTKI must record and update list of such taxpayer. c. Collection section in tax office must update tax in arrears data in DGT information system. 5. Procedures for implementing tax amnesty and its documentation are available at the attachment of this Circular Letter. 6. Tax amnesty monitoring and evaluation activity. a. Chief of DGT will monitor receiving and follow up of statement of declaration activity through dashboard application. b. Head of regional tax office and tax office will monitor and conduct internal control through monitoring application. c. Regarding suspension and termination of examination, preliminary evidence examination and investigation, section head of examination in tax office; section head of administration of preliminary evidence investigation, collection, intelligence and investigation in regional tax office; section head of administration in directorate of examination and collection; section head in sub directorate of preliminary evidence examination directorate of law enforcement; section head in sub directorate of investigation must monitor such taxpayer through monitoring application every day. d. Regarding settlement of revocation of reconsideration on tax court verdict, section head of reconsideration in directorate of objection and appeal must monitor such taxpayer through monitoring application everyday. e. Regarding administration sanction annulment proposal to regional tax office, section head of collection must monitor such taxpayer through monitoring application everyday. f. Regarding tax decision and assessment cancellation proposal which issued after statement of declaration is submitted by taxpayer; section head of monitoring and consultation in tax office must monitor such taxpayer through monitoring application; section head of objection, appeal and reduction in regional tax office must monitor such taxpayer through monitoring application everyday. g. Regarding follow up of court verdict which received after statement of declaration is submitted by taxpayer; section head of monitoring and consultation in tax office, section head of objection, appeal and reduction in regional tax office and section head in directorate of objection and appeal must such taxpayer when follow up the court verdict. 7. All receiving and follow up of statement of declaration team member and official who get access to monitor tax amnesty must keep confidential all data and information of the taxpayer. 8. All team members in tax office and regional tax office are not allowed to bring any communication devices, recorder, camera or any other tools to record or take picture of any document or upload any document in social media other then DGT application system. 9. All team member in tax office and regional tax office especially head of sub team and team member who directly contact with taxpayer will wear uniform. 10. Head of tax office will provide specific room or specific container to keep statement of declaration. 11. When there is emergency situation or technical problem, tax office still can accept statement of declaration. 12. Head of tax office will brief all his subordinates regarding tax amnesty policy. 13. Head of tax office will responsible on keeping tax amnesty file before sending it to KPDDP Makassar. 0 CommentsDGT Circular Letter No. SE-32/PJ/2016 dated 18 July 20167/31/20160 CommentsPROCEDURES FOR IMPLEMENTING AND ADMINISTERING OF GRANTING EXEMPTION FROM VAT ON IMPORT AND/OR TRANSFERRING PARTICULAR STRATEGIC TAXABLE GOODS FACILITY Taxable entrepreneur which eligible for getting exemption from VAT are:Taxable entrepreneur who Importing machinery and manufacturing equipment in one package excluding spare parts, either build in or knock down, which will be used for producing taxable goods belong to such taxable entrepreneur.Taxable entrepreneur who receive machinery and manufacturing equipment in one package excluding spare parts, either build in or knock down, which will be used for producing taxable goods belong to such taxable entrepreneur.Taxable entrepreneur must get statement of dispensation on VAT strategic taxable goods before importing and/or receiving such goods. Taxable entrepreneur must apply such document to DGT through head of tax office. Head of tax office must make a decision at the latest 5 days after receiving a complete application. Head of tax office may annul the statement of dispensation when there is:Mistyping and/or miscalculation.Any data and/or information which show the taxable entrepreneur is not eligible for obtaining such facility.When there is mistyping and/or miscalculation taxable entrepreneur may ask for annulment and reissuance of statement of dispensation attached with original statement of dispensation and reason for annulment. Head of tax office must reissue new statement of dispensation within 2 days after receiving a complete request. When there is a new data and/or information which shows the taxable entrepreneur is not eligible for the facility, head of tax office may issue statement of annulment of statement of dispensation ex officio.0 CommentsMoF Regulation No. 101/PMK.010/2016 dated 22 June 20166/30/20160 CommentsADJUSTMENT ON NON TAXABLE INCOME Non taxable income will be adjusted as follow: a. IDR 54,000,000 for individual taxpayer b. Additional IDR 4,500,000 for married taxpayer c. Additional IDR 54,000,000 for wife whose income is combined with her husband d. Additional IDR 4,500,000 for every family’s dependent related by blood and marriage in direct linage also adopted child, with maximum 3 people for each family. Detail procedures for this calculation will be set by DGT regulation. This regulation will be effective for 2016 fiscal year. At the effective date of this regulation, Minister of Finance Regulation No. 122/PMK.010/2015 will be void and no longer valid. 0 CommentsPresidential Instruction No. 5 Year 2016 dated 7 June 20166/30/20160 CommentsGRANTING REDUCTION AND/OR RELIEF OR EXEMPTION ON DUTY ON TRANSFER OF LAND AND BUILDING RIGHTS AND LEVY ON BUILDING CONSTRUCTION PERMIT FOR LOW INCOME SOCIETY This instruction address to Governor of Jakarta Capital City Special Region and all regents/ mayors to:Take necessary steps to accommodate low income society by reducing and/or relieving or exempting duty on transfer of land and building rights and levy on building construction permit based on every region financial condition.Set necessary procedures and technical guidance by issuing regional regulation in accordance with law and regulation.Governor of Jakarta Capital City Special Region will report regularly to president through Minister of Domestic Affair.Regents and mayors will report regularly to governor as representative of central government and governor will pass it to president through Minister of Domestic Affair.0 Comments<<Previous | ArchivesDecember 2016 November 2016 October 2016 August 2016 July 2016 June 2016 May 2016 April 2016 March 2016 CategoriesAll General Tax Income Tax Art 22 Income Tax Art 25/29 (Corporate) Income Tax (General) Land And Building Tax Tax Amnesty Tax-and-custom Tax And Customs Value-added-tax RSS FeedOur Advisors For further professional assistance, please contact : Hidajat Hoesni hidajath@falcon-sc.com Cecylia Setiadi cecylia@falcon-sc.com Vinanda Angga vinandak@falcon-sc.com Source : www.pajak.go.id |