Wednesday, January 26, 2011

Public private partnership projects can get tax holiday

JAKARTA. There is exciting news for potential investors of infrastructure projects with joint funding scheme, aka the government and private public private partnership (PPP).
Deputy of Infrastructure Ministry of National Development Planning (VAT) / Bappenas Dedy Priatna say, almost all infrastructure projects of government and private cooperation has great potential for the stimulus package of income tax exemption for a specified period or tax holidays.

The potential was raised after the government issued Government Regulation (PP) No. 94 Year 2010 on Taxable Income Calculation and Payment of Income Tax in Current Year. The rules, published late December 2010 that provides the legal basis for the Minister of Finance to issue a tax exemption facility within a specified period (tax holiday).

But according to Dedy, currently out of five PPP projects that will be tendered the government this year, new projects Steam Power (power plant), Central Java are certainly going to get the tax holiday facility. The value of this project reaches U.S. $ 3 billion (see box). As for other PPP projects Dedy not sure whether to get a tax holiday facilities.

Investors are increasingly interested

"This policy is necessary to attract and encourage investors into other sectors or projects that had not been much demand and high risk, such as utilization of geothermal energy or geothermal," said Ded last weekend.

For your information, other than power plant in Central Java, other PPP projects that will dilego government this year is the project ampo Land Port, Bali U.S. $ 30 million, rail projects Manggarai Soekarno-Hatta worth U.S. $ 735 million. Then the toll road project in Medan-Kuala Namu airport U.S. $ 475 million, as well as drinking water project in East Java Umbulan worth U.S. $ 200 million.

Dedy rate, the new policy on sector-related taxation of income tax relief for prospective investors are going to be a stimulus and attract investors to invest in Indonesia. "Obviously going to attract investors because of this logic, taxes related to production costs. If charged at the beginning they (investors) when the investment will build here, it will not be competitive. If acquitted, there are advantages for them," said Dedy length.

He is optimistic, the new policy or regulation in the taxation sector will provide a fresh breeze to prospective investors. Therefore, this policy has been long awaited by owners of capital, especially foreign investors.

However, Dedi agree that not all infrastructure projects should get a stimulus package of tax holiday. Therefore, the income still minimal, but growing expenditure needs. "So the necessary selection and thorough consideration," he added.

Earlier, Finance Minister Agustin Martowardojo said, the government will only provide tax holidays for pioneer industries with the five criteria, namely creating great jobs, bringing new technology into small areas and underdeveloped. In addition, the project also must be able to add value to other industries and the Indonesian economy at large.

Chairman of the Chamber of Commerce and Industry (Kadin) of Monetary, Fiscal and Public Policy Haryadi Sukamdani also said the policy agreed tax holiday will make investors interested in investing directly in Indonesia.
Source : Kontan Online

Friday, December 31, 2010

Socialization Period VAT SPT 1111 and SPT the VAT 111 DM

Cash Weekly Edition 13 to 19 December 2010, December 13, 2010
Regional Office of Directorate General of Taxation (DGT) Large Taxpayers successful socialization SPT 1111 and SPT PPN Period Period 1111 DM VAT in Jakarta on Monday (6 / 12). Socialization, which was attended by tens of Taxable Entrepreneur (PKP) registered in the Large Taxpayer Office of DGT is part of the DGT step to introduce the use of tax return that will apply from 1 January 2011.

Previously, the DGT has been the launching SPT 1111 and SPT Period Period VAT VAT in 1111 of DM in late November 2010, replacing the Master Form SPT 1107/1108.

With the publication of Regulation No. PER-44/PJ/2010 DGT October 9, 2010 Concerning Form, Fill, and Procedure Notice of Completion And Submission Period Value Added Tax (VAT return period), then begin January 1, 2011, each PFM already have use tax return forms new VAT period, the tax return form 1111 VAT period.

For taxpayers who use the guideline calculation crediting input tax, VAT Period tax return form should be used is 1111 DM form, that its provisions are dealt with separately in FMD 74/PMK.03/2010. PFM PFM include businesses that have a circulation of 1 (one) year will not exceed USD 1.8 billion, taxpayers who do file delivery vehicles and delivery of PFM that make gold jewelry.

DGT will continue to innovate to provide facilities, legal certainty and improve service to taxpayers in reporting activities and to account for the calculation of the amount of VAT and luxury sales tax. The use of SPT 1111 and SPT PPN Period Period 1111 DM VAT is regulated in Article 14 PMK-181/PMK.03/2007 stdd PMK-152/PMK.03/2010.

Socialization is also intended to accommodate changes to provisions in the Act and the Act on VAT KUP and encourage taxpayers (WP) to report returns in electronic form or e-SPT. Returns in electronic form or e-SPT was also launched in late November was born with various considerations of the DGT.

The reason is to provide efficiencies and savings that can be done with the data in the form of digital data, because previous data recording obtained from the hard copy. With the validity of a more secure, WP does not need to do repetitive data entry. Other reasons related to support for the issue of Go Green.

DGT concern for the issue of Go Green is shown through legislation to taxpayers who submit VAT SPT 1111 and SPT Period Period 1111 DM VAT. For taxpayers who want to convey SPT 1111 and SPT PPN Period Period 1111 DM VAT is less than 25 documents in one (1) the tax period to fill in the form of a paper form or electronic data.

But for the PKP with more than 25 documents in one (1) the tax period are required to submit tax returns and VAT 1111 VAT period 1111 DM in the form of electronic data. And for PKP who have submitted tax returns in the form of electronic data can not return to the form of paper.

The SPT Procurement VAT with a paper form or e-SPT Applications can be taken alone in the Tax Office (KPP) or the Office of Counseling and Consultation Services Tax (KP2KP). PFM can reproduce itself or to download via

PFM can also access e-tax return through the Application Service Provider or Application Service Provider (ASP) that has been designated by the Director General of Taxation as a company that can distribute the delivery of Return or Notice of Extension of tax returns electronically.

Thursday, December 30, 2010

Three New Rules Applicable Vehicle Tax 2011

TEMPO Interactive, Jakarta - The Jakarta administration will authorize three kinds of local regulations associated with the vehicle. Rules on customs behind the name, motor vehicle fuel tax and motor vehicle taxes that are progressive. The three types of levies actually been in effect earlier. But the new rules which will come into force on January 1, 2011 this will be some adjustments, including law enforcement district tax base.

"The foundation of the previous local tax law is Law No. 34 of 2000 on Taxes and Levies. Converted into Law No. 28 Year 2009 on Regional Tax and Retribution, "said Head of Tax Services of Jakarta, Iwan Setiawandi, yesterday.
Motor vehicle fuel tax is charged to the refueling station manager at the time of purchase from PT Pertamina. The fee is 5 percent of the sale value before subject to value added tax (VAT). Percentage tax rates could change if there is an increase in world oil prices exceed 130 percent of the world oil price assumption in the current Budget. "It charged that the managers, but consumers will also be affected by fuel prices," said Iwan.

Next is the motor vehicle tax which is progressive and is paid every year. The basis of computation is the value multiplied by the rate of motor vehicle sales 1.5 percent for the first vehicle ownership. The second vehicle tax rose to 1.75 percent, 2.5 percent the third vehicle, then the fourth vehicle and beyond 4 percent.

Rates for vehicles owned entities (not individuals) was fixed 1.5 percent. While owned by military, police, central government and local governments by 0.5 percent.

Public transport, ambulances, hearses, and fire rate of 0.5 percent. While owned by religious charitable organizations, the rate of 0.5 percent, and tariffs for heavy equipment and large at 0.20 percent.

Cost behind the name will be imposed on the transfer of ownership of motor vehicles more than 12 months since the sale, exchange, gift, inheritance, or entry into the enterprise. Delivery of the first tariff of 10 percent, and for the second and subsequent vehicles by 1 percent.
Source :, December 23, 2010

Progressive Taxation Start From 2011

Jakarta, Kompas - To reduce the level of ownership and use of motor vehicles, the city administration will implement a progressive tax motor vehicles in 2011. Parliament requested that tax revenues are used to improve the transport sector.
Head of Tax Service Iwan Setiawandi Jakarta, Sunday (26/12) in Central Jakarta, said the first private vehicle motor vehicles will be taxed at 1.5 percent of the purchase price of the vehicle. Tax for private vehicles both rose to 1.75 percent, 2.5 percent the third vehicle, and four vehicles, and so on 4 percent.

Progressive tax is imposed it is still lower than the progressive tax rules set out in Law No. 28/2009 on Regional Taxes and Levies, which is 10 percent. In the Law, every local government is given discretion to determine the amount of tax according to their economic potential, as long as not to burden the residents.

According to Blue, this step can affect two things, increase revenues dramatically or drop in local revenues from taxes. However, the application of these taxes are aimed at pressing the ends of motor vehicles is to reduce vehicle usage and congestion level.

"DKI Jakarta ready if revenue from motor vehicle taxes down. Each policy must be consequences. We will boost revenue from the building sector, "said Iwan.

Based on data from the Jakarta Police, the number of private cars in Jakarta, 8.5 million units (motorcycles and cars). With a population of 9.6 million people, each family on average has three personal vehicles or more.

Chairman of the Jakarta City Council Transportation Principle Tigor Nainggolan said, the number of private vehicles owned by each family trigger a number of vehicle usage. This is a major cause of occurrence of congestion.

For infrastructure

Application of progressive taxes is expected to be one way to reduce congestion. Progressive tax is expected to also apply in Bodetabek for vehicle ownership is not shifted to the suburbs and still go to Jakarta, sparking traffic jams.

Member of Commission D of the DPRD DKI Jakarta M Sanusi said that if the progressive tax policies to increase local revenues, the allocation of funds to build roads and mass transit infrastructure. If mass transit and infrastructure increases, the congestion can be reduced.

"Funds from progressive taxes should be mixed with other funds and go into the revenue budget. Additional revenue should be recorded and allocated to build the infrastructure and mass transit, "he said.

Transjakarta bus mass transit can be ideal if the fleet added significantly and improved its management system, such as management of TransMilenio in Bogota.
Source : Kompas, December 27, 2010

Saturday, December 25, 2010

January, Adisucipto Airport Place VAT Refund

Written by Administrator
Wednesday, 22 December 2010
Daily Cash, December 22, 2010
JAKARTA. This is good news for foreign tourists. Government plans to add five airports (airport) again to return the program implementation of Value Added Tax (VAT) to foreign tourists, aka value-added tax (VAT) Refund for tourist from the road.

Tuesday (21/12) yesterday, the Directorate General (DG) of Taxation Ministry of Finance officially released the new rules about the addition of facilities for VAT Refund Adisucipto Airport, Yogyakarta. Starting early 2011, this airport can provide facilities VAT Refund. "This provision is stipulated in the Decree of the Minister of Finance Number 427/KMK.03/2010, which became effective on January 1, 2011," said Iqbal Alamsjah, spokesman for the Directorate General of Taxes in its written statement on Tuesday (21/12).
With the establishment of Adisucipto airport in Yogyakarta as a VAT refund, the Tax Directorate also adding 10 retail shops in Yogyakarta, as retail participation in the scheme of VAT Refund for Tourist this. Note only, VAT Refund is a tax incentive for foreign citizens who travel and live a maximum of two months in Indonesia. Incentives in the form of VAT refund worth at least Rp 500,000 for a souvenir from Indonesia who will be brought into the country. This program has been the road since April 2010.

VAT Refund To run the program, the Directorate General of Taxation took 30 retail outlets, not including 10 stores in yogyakarta. So, now total there are 10 retail outlets that can serve the VAT Refund.

With the entry of Adisucipto, then there are currently three international airport serving the VAT Refund, namely Soekarno Hatta Airport, Jakarta, Ngurah Rai Airport, Bali; Adisucipto Airport, Yogyakarta. After Adisucipto, VAT Refund facility also will apply next year at the Airport Husein Sastranegara, Bandung; Juanda, Surabaya; Sam Ratulangi, Manado, and Polonia Airport, Medan.

Observers taxation Darussalam, said that the government should expand the application of VAT Refund for foreign tourists. Because this rule applies worldwide.

Source : Kontan Daily, December 22, 2010