2 February, 2016
Minister of Finance (“MOF”) Regulation No. 191/PMK.010/2015, dated October 20, 2015, regarding the Re-evaluation of Fixed Assets for Tax Purposes for Applications Submitted in 2015 and 2016. Pursuant to this Regulation, taxpayers may re-evaluate fixed assets for special tax treatment by submitting an application to the Director General of Tax between October 20, 2015 and December 31, 2016. Such special tax treatment is in the form of a Final Income Tax imposed on the difference between the re-evaluated value/estimate of the re-evaluated value of the fixed asset and the remaining value of the original fiscal book. The rate of such income tax will be 3%, 4% or 6%, depending on the date the application is submitted by the taxpayer. This Regulation stipulates that the re- evaluated value of fixed assets shall be determined by a licensed public appraiser office or a licensed appraiser. This Regulation came into effect on the date of its enactment.
MOF Regulation No. 193/PMK.03/2015, dated October 20, 2015, regarding the Procedure for the Granting of Non-Collection of Value Added Tax (“VAT”) on the Import and/or Delivery of Certain Transportation Vehicles and the Delivery of Taxable Services Related to Certain Transportation Vehicles. This Regulation implements Government Regulation No. 69 of 2015 regarding the Import and Delivery of Certain Transportation Vehicles and the Delivery of Taxable Services Related to Certain Transportation Vehicles that are Exempted from VAT. Attachment I of this Regulation lists transportation vehicles that are exempted from VAT on their import and/or delivery. Attachment II sets out the procedure for the issuance of SKTD, a document that must be obtained to receive the VAT exemption for the import and/or delivery of certain transportation vehicles. This Regulation came into effect on the date of its enactment and is enforceable retroactively to October 17, 2015.
MOF Regulation No. 198/PMK.010/2015, dated November 6, 2015, regarding the Second Amendment of MOF Regulation No.179/PMK.011/2012 regarding Excise Tariffs on Tobacco Products. This Regulation was issued to help meet the tax receipt target for tobacco products. The excise tariffs stipulated in this Regulation are applicable starting January 1, 2016. Attachment I of the Regulation sets sales price limits and the pertinent excise tariffs for tobacco products. Attachment II sets the same for imported tobacco products. This Regulation came into effect on the date of its enactment.
MOF Regulation No. 200/PMK.03/2015, dated November 10, 2015, regarding Tax Treatment for Taxpayers and Taxable Entrepreneurs using Certain Collective Investment Contract Schemes for the Purpose of Enhancing the Finance Sector. Pursuant to this Regulation, the transfer of real estate to a Special Purpose Company (“SPC”) or certain Collective Investment Contract (“CIC”) is exempted from Article 4 (2) Income Tax that is applied to the transfer of land and/or building title. Subject to further conditions under this Regulation, dividends received by the CIC from the SPC are not subject to Article 23 Income Tax. This Regulation is part of the government’s economic policy package enacted to boost investment growth in the real estate sector. To obtain such tax treatment for received dividends, the CIC must submit several documents as stipulated in this Regulation to the tax office when filing its annual tax return. This Regulation came into effect on the date of its enactment.
For further information, please contact:
Dyah Soewito, Partner, Soewito Suhardiman Eddymurthy Kardono
dyahsoewito@ssek.com
