MoF Regulation No. 141/PMK.03/2015 dated July 24, 2015

TYPES OF OTHER SERVICES AS MENTIONED IN ARTICLE 23 PARAGRAPH 1 LETTER C NUMBER 2 LAW NO. 7 YEAR 1983 CONCERNING INCOME TAX AS SEVERAL TIMES AMENDED LAST RECENTLY BY LAW NO. 36 YEAR 2008

1.    Compensation regarding to other services except for services already subject to income tax article 21, as mentioned in article 23 paragraph 1 letter c number 2 Law No. 7 Year 1983 concerning income tax as last amended by Law No. 36 Year 2008, will subject to 2% of income tax withholding from gross amount excluding VAT.

2.    Excluding from this income tax withholding are compensation of other services which already subject to final income tax under tax law and regulation.

3.    Gross amount are:

a.    Catering services are all revenue under any name and any kind which is paid, available for payment or already due for payment by government, domestic corporate tax subject, event organizer, permanent establishment or representatives of foreign company to domestic taxpayer or permanent establishment, and

b.    Other services except catering are all revenue under any name and any kind which is paid, available for payment or already due for payment by government, domestic corporate tax subject, event organizer, permanent establishment or representatives of foreign company to domestic taxpayer or permanent establishment, not including:

1)   Payment of salary, wages, honorarium, benefit and other payment related to jobs which is paid by taxpayer to its employees, under contract with taxpayer;

2)   Payment to supplier for procurement/purchases of goods or materials related to its services;

3)   Payment to third parties which is paid through services provider, related to its services; and/or

4)   Payment to service provider for reimbursement on cost already paid by service provider to third parties relates to its services.

4.    The above payment in point b are excluding from gross amount as basis for income tax withholding, as long as there are any evidence such as:

a.    Work contract and payment list of salaries, wages, honorarium, benefit and other payment related to jobs;

b.    Purchase invoice on procurement/purchases of goods or material;

c.    Billing from third parties along with written agreement and

d.    Billing and/or payment evidence paid by service provider to third parties.

5.    When there are no evidences, gross amount as basis for income tax article 23 withholding is all payment to service provider excluding VAT.

6.    Other type of services are:

a.    Appraisal

b.    Actuary

c.    Accounting, bookkeeping and financial statement attest job

d.    Legal

e.    Architecture

f.     City planning and landscape architecture

g.    Design

h.    Drilling in oil and gas mining, except conducted by permanent establishment

i.     Supporting services in geothermal and oil and gas mining industry

j.     Mining and supporting services other than geothermal and oil and gas mining business

k.    Supporting services in airlines and airport

l.     Forestry

m.  Waste processing

n.    Outsourcing services

o.    Brokerage and/or agency

p.    Securities, except conducted by stock exchange, Indonesia central custodian securities and Indonesia securities clearing and guarantee

q.    Custodian/safe keeping/deposit, except conducted by Indonesia central custodian securities

r.     Dubbing and/or voice over

s.    Film mixing

t.     Making of promotion material for film, advertising, poster, photo, slide, negatives, banner, pamphlet, billboard and folder

u.    Services related to software or hardware or computer system including services, maintenance and repair

v.    Service in making and/or managing website

w.   Internet services and its connection

x.    Storage, processing and/or data, information and/or program distribution

y.    Machinery, equipment, electricity, telephone, water, gas, AC and/or TV cable installation, except conducted by taxpayer whose business is construction and has license and/or certification as construction entrepreneur

z.    Machinery, equipment, electricity, telephone, water, gas, AC, TV cable and/or building services/repair/maintenance, except conducted by taxpayer whose business is construction and has license and/or certification as construction entrepreneur

aa. Vehicle and/or land, sea and air transportation maintenance services

ab. Tolling services

ac. Security and investigation

ad. Event organizer

ae. Time and/or location provider in mass media, outdoor media or other media for information distribution and/or advertising

af. Pest control

ag. Cleaning services

ah. Septic tank suction

ai. Pool maintenance

aj. Catering

ak. Freight forwarding

al. Logistic

am. Document arrangement

an. Packaging

ao. Loading and unloading

ap. Laboratory and/or testing except conducted by education institution for academic research

aq. Parking management

ar. Land sounder

as. Land preparation and/or processing

at. Nursery

au. Plant maintenance

av. Harvesting

aw. Agricultural, plantation, fishery, livestock and/or forestry product processing

ax. Decoration

ay. Printing/publication

az. Interpreter

ba. Transportation/expedition services except regulated in income tax law article 15

bb. Port services

bc. Pipeline services

bd. Daycare services

be. Training and/or courses

bf. Money delivery and filling to ATM

bg. Certification

bh. Survey

bi. Tester

bj. Other services paid by using state budget or local government budget

7.    When payment receiver has no taxpayer registration number, tax withholding rate will become 100% higher than normal rate

Supporting services in geothermal and oil and gas mining are:

a.    Primary cementing, placing cement between pipe and well

b.    Remedial cementing, placing cement for:

1)   To plug empty formation

2)   To plug water zone production

3)   Repayment for fail primary cementing

4)   Closing well

c.    Sand control services

d.    Matrix acidizing services

e.    Hydraulic services

f.     Nitrogen and coil tubing services

g.    Drill steam testing services

h.    Reda repair services

i.     Installation and maintenance services

j.     Replacement of equipment and material

k.    Mud logging services

l.     Mud engineering services

m.  Well logging and perforating services

n.    Stimulation and secondary discovery services

o.    Well testing and wire line services

p.    Offshore navigation control equipment services related to drilling

q.    Drilling maintenance services

r.     Mobilize and demobilize drilling services

s.    Directional drilling and surveys services

t.     Exploratory drilling services

u.    Location stacking/positioning services

v.    Preliminary research services

w.   Land acquisition services

x.    Land drilling preparation services

y.    Rig installation services

z.    Main drilling and rig drilling services

aa. Main drilling with small bore machine

ab. Additional hole drilling services

ac. Well handling and transportation access services

ad. Service line and communication services

ae. Water system services

af. Rigging up and/or rigging down services

ag. Human resources supply and other resources such as tools, equipment and others

ah. Diving and welding services

ai. Completion process services for preparing well for use

aj. Pump fees services

ak. Unplugging bore equipment services

al. Oil testing services

am. Business legal handling services

an. Auction services

ao. Seismic reflection studies services

ap. Geomagnetic, gravity and other surveys services, and

aq. Other services related to drilling, production and/or closing oil and gas mining

Mining and supporting services other than geothermal and oil and gas mining are all services in general mining such as:

a.    Drilling

b.    Land clearing

c.    Stripping and drilling

d.    Mining

e.    Loading and transportation system except public transportation

f.     Mining material handling

g.    Mine reclamation

h.    Mechanical, electrical, manufacture, fabrication and digging/land moving services

i.     Mobilize and demobilize services

j.     Business legality handling services

k.    Funding services

l.     Land acquisition

m.  Stockpiling services

n.    Other similar services in general mining

Supporting services in airline and airport services are:

a.    Aeronautical including

1.    Airplane landing, placement, storing and other services relating to airplane landing

2.    Avio bridge services

3.    Airline services

4.    Ground handling

5.    Other supporting services in aeronautical

b.    Non-aeronautical, including

1.    Airline catering and airplane pantry cleaning services

2.    Other supporting services in non-aeronautical

Tolling services are services render in finishing certain product by service provider which specification of all or part of product, raw material, half finish material and/or supporting material provided by service user who also the owner of finish goods.

Event organizer services are business activities by event organizer entrepreneur including exhibition, convention, music concert, parties, seminar, product launching, press conference and other activities held by event organizer.

Freight forwarding services are business activities on behalf of the owner to handle all/part of necessary activities for delivery and receiving goods by land, sea and/or air, including receiving, storing, sortation, packing, marking, measuring, weighing, document handling, transportation document issuance, calculation of transportation cost, claim, insurance on goods delivery also settle billing and other charges related to delivery until the goods are arrived in destination.

At the effective date of this regulation, Minister of Finance Regulation no. 244/PMK.03/2008 is void and no longer valid.

This regulation will be effective 30 days after its promulgation.