Minister of Finance Tax Regulation Number 139/PMK.03/2010

DUPLICATE
MINISTER OF FINANCE
NUMBER 139/PMK.03/2010

ABOUT

DETERMINING THE AMOUNT OF INCOME OBTAINED BACK
INDIVIDUAL TAXPAYERS OF THE STATE OF WORK THAT HAVE
RELATED PARTY WITH OTHER COMPANIES THAT DO NOT ESTABLISHED AND
Or domiciled in INDONESIA

BY THE GRACE OF GOD ALMIGHTY

MINISTER OF FINANCE,




Considering:
a. that under the provisions of Article 18 paragraph (3d) of Law Number 7 Year 1983 regarding Income Tax as amended by Act No. 36 of 2008 stipulated that the amount of income earned by individual taxpayers in the country of the employer who has special relationship with another company that is not established or domiciled in Indonesia can be reset, in which case the employer to transfer all or part of the Taxpayer's income individuals in the country in the form of fees or other expenses paid to companies not established or domiciled in Indonesia;

b. that based on the considerations referred to in letter a, and to implement the provisions of Article 18 paragraph (3e) of Law Number 7 Year 1983 regarding Income Tax as amended by Act No. 36 of 2008, necessary to stipulate the Minister of Finance on Determination of Return The amount of Income Obtained by individual taxpayer Affairs of Employer Who Have Relationship with Other Companies Not Established and No Position Located in Indonesia;

Given:
1. Law Number 6 Year 1983 concerning General Provisions and Taxation Procedures (State Gazette of the Republic of Indonesia Year 1983 Number 49, Supplementary State Gazette of the Republic of Indonesia Number 3262) as amended by Act No. 28 of 2007 (State Gazette of the Republic Indonesia Year 2007 Number 85, Supplementary State Gazette of the Republic of Indonesia Number 4740);

2. Law Number 7 Year 1983 on Income Tax (State Gazette of the Republic of Indonesia Year 1983 Number 50, Supplementary State Gazette of the Republic of Indonesia Number 3263) as amended by Act No. 36 of 2008 (State Gazette of the Republic of Indonesia Year 2008 Number 133, Gazette of the Republic of Indonesia Number 4893);

3. Presidential Decree Number 56 / P Year 2010;
DECIDED:
REGULATION OF THE MINISTER OF FINANCE ON THE DETERMINATION OF THE AMOUNT OF INCOME TAX RETURN OF INDIVIDUAL TAXPAYERS BE OBTAINED IN THE STATE OF THE WORK OF ITS RELATED PARTIES WITH OTHER COMPANIES THAT DO NOT ESTABLISHED nor domiciled IN INDONESIA.

Article 1

In Regulation of the Minister of Finance is the meaning of:

1. Income Tax Law is Law Number 7 Year 1983 regarding Income Tax as amended by Act No. 36 of 2008.
2. Related Party is a special relationship as provided for in Article 18 paragraph (4) Income Tax Law, or related parties as set forth in the Agreement Avoidance of Double Taxation and Prevention of Tax Evasion (P3B) between Indonesia and partner countries that apply.
   
   

Article 2

1. The amount of income earned by individual taxpayers in the country in connection with work, activities, or services from employers who have a Special Relationship with companies abroad can be reset, in which case the employer to transfer all or part of individual income taxpayers in the country referred to in the form of the imposition of fees or other expenses payments to companies outside the country.
2. an individual taxpayer in the country as referred to in paragraph (1) is an employee of the company abroad that has a Special Relationship with the employer.
3. costs or other expenses that are charged or paid by the employer to overseas companies that have a Related Party, among others, in the form of fees or expenses in connection with technical, management, or other services.
   
   

Article 3

1. The amount of income an individual taxpayer in the country in connection with work, activities, or services referred to in Article 2 is determined again by taking into account a reasonable level of income that should be acquired by an individual taxpayer concerned.
2. Income referred to in paragraph (1) is the sum of income received by taxpayer in Indonesia and the income earned abroad.
3. The amount of foreign income after a specified return referred to in paragraph (1) may not exceed the amount of fees or other expenses that are charged or paid by the employer to companies abroad that are Related Parties.
4. On the income an individual taxpayer in the country who have been determined again as referred to in paragraph (3) becomes the basis for calculating withholding tax referred to in Article 21 and / or Article 26 of the Income Tax Act.
5. In order to reallocate income individual taxpayers in the country as referred to in paragraph (1), the Director General of Taxation to establish standard guidelines for salaries of foreign employees.
   
   

Article 4
Minister of Finance Regulation comes into force upon promulgation.
For every person to know, the Ministry of Finance ordered promulgation by publishing in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
on August 11, 2010
FINANCE MINISTER

Signed.

AGUS D.W. Martowardojo

Promulgated in Jakarta
on August 11, 2010
MINISTER OF JUSTICE AND HUMAN RIGHTS,

Signed.

Patrialis Akbar

NEWS OF THE REPUBLIC OF INDONESIA YEAR 2010 NUMBER 385

Promo on the Internet Taxable

JAKARTA - SURYA-The businessman will spend more to run its business. They will be subject to income tax liability on the individual taxpayer for Certain Employers (WP OPPT), based PER-32/PJ/2010.

With this rule, the Directorate General of Taxation will be disciplined businessman who has many business outlets, but only report a single outlet. Regulation WP OPPT applied on July 12, 2010. "One businessman so many outlets, but that in only one-ajuin. It's who wants to be disciplined, "said Dasto Ladyanto, Head of Regulation and Collecting Income Tax Withholding Affairs in Jakarta, Friday (23 / 7). He said employers must pay 0.75 percent of the circulation of business each month from each place of business.

"So, if there is one and five outlets floor, he must pay it every month," he explained. Imposition WP OPPT also made to the business at home, shop or via the internet, because they are deemed open and have a business.

"The views that there is a place of business, either at home or via the internet, as long as they open the business," he said.
Employers must register to obtain a Taxpayer Identification Number (TIN) for each business in the Tax Office (KPP), the local area.

However, the Directorate General of Taxation said difficulty collecting taxes on the sale and purchase transactions online. The reason, the quality of human resources and information technology was inadequate.

Limitations that lead to the Directorate General of Taxation is difficult to detect employers who use online services, including the value of the transaction. "As long as there is no recognition of the taxpayer, the transaction or place of business via online, will not be recorded," said Dasto.

He said, yet many people report the transaction. Dasto suspect this because the consciousness of paying taxes based on the calculation itself is still low.

Meanwhile, Chairman of Cafes and Restaurants Association of Indonesia (Apkrindo) Java Tjahjono Haryono admitted, has not received notification WP OPPT. During this routine is the tax payable Development I (PP-1) is subject to government by 10 percent of each transaction.

"It was paid in a transparent and every entrepreneur can not deny. If indeed WP OPPT enacted, we will hold talks with members of the association, "said Tjahjono.
Severance Tax Decrease

On the other hand, the rate of income tax on severance pay, cash benefits, allowances and retirement benefits reduced. The goal, so they are armed with the money it is more prosperous. This policy is stipulated in Minister of Finance Regulation No 16/PMK.03/2010.

"Given the incentives for new businesses or retire," said Dasto. Recipient severance and retirement benefits of Rp 50 million, not subject to tax (the original five percent). For USD 50 million-USD 100 million subject to five percent (10 percent), USD 100 million-$ 500 million hit 15 percent (from 25 per cent). And, above USD 500 million in taxable income 25 percent
Source: surya.co.id

Ensure Government Will Give Tax Holiday

JAKARTA. The government continues to sell out the promise of fiscal stimulus, including tax incentives. Most recently, the government will give tax holidays, tax exemption alias within a certain timeframe.
Finance Minister Agustin Martowardojo revealed plans providing tax holidays for entrepreneurs in the National Congress Chamber of Commerce and Industry (Kadin General Assembly) VI in Jakarta, late last week. "We have prepared facilities for Income Tax (Income Tax) and income tax according to the special characteristics of the industry," he said. Unfortunately, Agus has not revealed when the application of tax holidays to entrepreneurs, and prospective employers to pay the tax holiday lovers.

Whereas before, on various occasions, the government always insisted tax holiday can not be given. You see, the laws on taxation are not familiar with that term.

Besides tax holidays, Agus promised gift seabrek other tax incentives for investors who are willing to invest in Special Economic Zones (KEK). The shape ranging from import tax exemption, land and building tax (PBB) in a certain time, Value Added Tax (VAT), until the liberation of Sales Tax on Luxury Goods (PPnBM). "It's all will we give," he said.

Employers obviously pleased with the government's plan to give tax holidays. Therefore, this policy was already long-awaited by them. These incentives likely to increase the competitiveness of domestic industry. "Do not hesitate to give incentives from supervised its implementation," said Haryadi Sukamdani, Vice Chairman of the Chamber of Commerce Division of Monetary, Fiscal, and Public Policy.

Haryadi rate, the benefits of tax holiday is not just enjoyed by entrepreneurs, communities, too, feel it. "The price of the products may be cheap, because the cost of production also fell," he said

Source : Harian Kontan

Online Sales Through Taxed 0.75% (Tax Regulation PER-32/PJ/2010)

LETTER CIRCULAR
DIRECTOR GENERAL OF TAX
NUMBER PER-32/PJ/2010

ABOUT

IMPLEMENTATION OF ARTICLE 25 INCOME TAX
INDIVIDUAL TAXPAYERS FOR CERTAIN EMPLOYERS



Considering:
that in order to implement the provisions of Article 6 paragraph (2) Regulation of the Minister of Finance Number 255/PMK.03/2008 of magnitude calculation of Income Tax Installment In Current Fiscal Year To Be Paid By Taxpayers Own New, Banks, Leasing With Option, State-Owned Enterprises, Regional-Owned Enterprises, Taxpayers for listed and Other Taxpayers are based on Conditions Required to Make Periodic Financial Statements Including individual taxpayer Specific Entrepreneur as amended by Regulation of the Minister of Finance Number 208/PMK.03/2009, it is necessary Director General of Tax Regulation on Implementation of Article 25 Income Tax For Individual Tax Payer Specific Business;

Given:

1. Law Number 6 Year 1983 concerning General Provisions and Taxation Procedures (State Gazette of the Republic of Indonesia Year 1983 Number 49, Supplementary State Gazette of the Republic of Indonesia Number 3262) as amended by Act No. 16 of 2009 (State Gazette of the Republic Indonesia Year 2009 Number 62, Supplement
   Indonesia Number 4999);
2. Law Number 7 Year 1983 on Income Tax (State Gazette of the Republic of Indonesia Year 1983 Number 50, Supplementary State Gazette of the Republic of Indonesia Number 3263) as amended by Act No. 36 of 2008 (State Gazette of the Republic of Indonesia Year 2008 Number 133, Gazette of the Republic of Indonesia Number 4893);
3. Regulation of the Minister of Finance Number 255/PMK.03/2008 of magnitude calculation of Income Tax Installment In Current Fiscal Year To Be Paid By Taxpayers Own New, Banks, Lease With Option Rights, State-Owned Enterprises, Regional-Owned Enterprises, Compulsory Listed Tax and Other Tax-based Conditions Required to Make Periodic Financial Statements Including individual taxpayer Specific Entrepreneur as amended by Regulation of the Minister of Finance Number 208/PMK.03/2009:
4. Regulation of the Director General of Taxation Number 22/PJ/2008 on Payment and Reporting Procedures for Income Tax under Article 25; DECIDED:

REGULATION OF THE DIRECTOR GENERAL OF TAXATION ON THE IMPLEMENTATION OF ARTICLE 25 INCOME TAX FOR INDIVIDUAL TAXPAYERS OF CERTAIN EMPLOYERS.

Article 1

In Regulation of the Director General of Taxes, the meaning of:
1. Individual Tax Payer Specific Entrepreneur is an individual taxpayer who carries on business as Merchants Retailers who have 1 (one) or more places of business.
2. Retailers are an individual trader who did:
a. sales of goods both wholesale and retail, and / or
b. service delivery, through a place of business.
3. Installment Income Tax Article 25 is the installment of Income Tax in the current tax year for each month must be paid by the taxpayer referred to in Article 25 of Law Number 7 Year 1983 regarding Income Tax as amended by Act No. 36 Year 2008.
Article 2
(1) Individual Tax Payer Specific Employers must register to obtain a Taxpayer Identification Number for each place of business at the tax office whose jurisdiction covers the place of business and the tax office whose jurisdiction covers the residential taxpayers.
(2) The provisions referred to in paragraph (1) also applies in terms of place of business and residential individual taxpayer Certain Employers are in a working area of the same tax office.
Article 3
(1) The installment of Income Tax Article 25 for the individual taxpayer Specific Entrepreneur, set at 0.75% (zero point seventy five percent) of total gross turnover per month from each place of business.
(2) Repayment of Income Tax Article 25 as referred to in paragraph (1) shall be made through Bank or Bank Foreign Exchange Perceptions Perceptions Perceptions or Post Office using the Tax Payment include the Taxpayer Identification Number with the provision as referred to in Article 2.
(3) Repayment of Income Tax Article 25 as referred to in paragraph (2) a tax credit for income tax payable for the relevant tax year.
Article 4
(1) Individual Tax Payer Specific Employers who make installment payments of Income Tax Article 25 as referred to in Article 3, paragraph (2) and Letter of Tax Deposit has received validation by Number Transaction of State Revenue, considered Period lodges its income tax under Article 25 to Tax Office in accordance with the validation date listed on the Tax Payment.
(2) Individual Tax Payer Specific Entrepreneur with a number of installments Income Tax Article 25 Nil or who make payments but do not get validation by Number Transaction of State Revenue, still must submit the Notice Period of Income Tax Article 25 in accordance with applicable regulations.
(3) If the individual taxpayer for Certain Employers do not conduct business as a merchant retailers in their home then individual taxpayer Certain Employers are not required to submit the Notice Period of Income Tax Article 25 at the tax office whose jurisdiction covers the place of residence.
(4) Payment of Income Tax Article 25 as referred to in Article 3, paragraph (2) are performed:
a. after the payment due date but not past the deadline for reporting, subject to administrative sanctions in the form of interest referred to in Article 9 Paragraph (2a) of Law No. 6 of 1983 concerning General Provisions and Tax Procedures as amended by Law No. 16 of 2009; or
b. after the due date of payment and reporting, subject to administrative sanctions in the form of interest referred to in Article 9 Paragraph (2a) and a fine as referred to in Article 7 paragraph (1) of Act No. 6 of 1983 concerning General Provisions and Tax Procedures as several amended by Act No. 16 of 2009.
(5) Individual Tax Payer Specific Employers failing to submit the Notice Period of Income Tax Article 25 as referred to in paragraph (1) and paragraph (2) until the maturity date of reporting, subject to sanction administrative fine referred to in Article 7 paragraph ( 1) of Act No. 6 of 1983 concerning General Provisions and Tax Procedures as amended by Act No. 16 of 2009.
Article 5
Individual Tax Payer Specific Employers are required to submit annual fiscal income by attaching a list of income and payment of income tax under Article 25 of the respective places of business with the tax office whose jurisdiction covers the place of residence Personal Tax Payer Specific Employers using the form as listed in Annex Regulation of the Director General of Taxes, which are an integral part of the Regulations the Director General of Taxes.
Article 6
At the time of the enactment of the Director General of Taxes, the Director General of Taxation Number KEP-171/PJ./2002 on Implementation of Article 25 Income Tax For Individual Tax Payer Specific Entrepreneur, revoked and declared invalid.
Article 7
Director General of Tax Regulation comes into force on the date of enactment. For every person to know, instructed the Director General of Tax Regulation announcements by publishing it in the State Gazette of the Republic of Indonesia
.

Stipulated in Jakarta
On July 12, 2010
DIRECTOR GENERAL OF TAXATION,
Signed.
MOCHAMAD Tjiptardjo
NIP 195104281975121002

Selling Goods over the Internet Taxable Income Tax 25

Jakarta - The Directorate General of Taxation (Taxation Office) to disseminate the implementation of the imposition of tax article 25 for the individual taxpayer for Certain Employers (WP OPPT).

One of the highlights, entrepreneurs who market their wares via the Internet or online services are also required to pay income tax 25 will at such rates of 0.75%.

Kasubdit Cutting and Personal Income Tax Withholding Tax DG Dasto Ledyanto said that the purpose of the issuance of these regulations in order to provide simplicity and convenience to WP OPPT installment payment obligations in implementing Articles 25.

"This also represents an optimization of WP OPPT revenue from income tax," he said in the House Taxation Office, on Friday (07/23/2010).

He said, the entire WP OPPT who trade via the internet services are required to submit Income Tax Return Period 25. "But those obligations must be done if omsetnya is above the Taxable Income (PTKP)," he said.

Dasto explains, WP OPPT understanding of individual taxpayers who do business as retailers who have more than one place of business.

"Well, the amount of installment Articles 25 to WP OPPT set at 0.75% of total gross turnover per month from each place of business," he said.

"So if his place of business must pay much taxes and submit its tax return," he said.

Dasto further affirm Taxation Office will conduct special surveillance for compliance with tax obligations OPPT. "Because it is still not optimal we will continue to conduct surveillance. Especially in the sector among the internet or online," he said.

Source : detikFinance

Online Sales Through Taxed 0.75% of Omset

VIVAnews - Directorate General of Taxes as of July 12, 2010 issued new rules on the release of circular letter from director general, Per-32/PJ/2010 about the implementation of the imposition of income tax under Article 25 for individual taxpayers of certain employers.

Subdirectorate Income Tax Withholding and Personal Income Tax Withholding and Dasto Ledyanto say this rule out in order to provide simplicity and convenience for individual taxpayers of certain businessmen (WP OPPT).

What is meant by an individual taxpayer is a taxpayer of certain employers who do business as a retailer that has one or more places of business.

Who would fall into this category is that they sell the goods, either wholesale or retail and / or delivery of services. Here of course there is a place of business as the passage of this sale.

This rule can be exemplified by someone who has a house in dDuren Sawit and has stores in malls Ambassador, Kelapa Gading, Ruko Inpres, or elsewhere.



"Online sales is also signed because they certainly have a place of business. Download it's only just kind of marketing strategy."

For them-they are, he said, every effort is done on the current account per month, subject to tax (PPh 25) equal to 0.75 percent of monthly gross turnover (turnover).

Payment can be made at banks or post offices perception of the current month. According Dasto installment payment of Income Tax Article 25 WP OPPT is counted as a tax credit on income tax payable for the relevant tax year.

WP OPPT who has already paid the installment of income tax under Article 25 and letters of tax collection system (CNS) has been validated with a number of transaction receipts, be deemed to have submitted a notification letter to the KPP income tax under Article 25 in accordance with the validation date listed on the letter of tax collection.

Taxpayers who are required to conduct activities that payment of income tax of Article 25 are those whose income is above the Rp1, 32 million per month under the provisions of the Income Tax Act.

"Having paid into the bank, received CNS reported to each KPP at the latest as of the date of the next 15 months, according to the provisions of that legislation," he said.

For taxpayers who did not submit a notice period of income tax under Article 25 until the maturity date of reporting, said Dasto, then according to Article 7 paragraph one of UU KUP taxpayers will incur penalty payments of Rp100 thousand .*

How to calculate customs duties and taxes

understanding:
price = cost (C)
insurance = insurance (I)
postage = freight (F)

Basic Value Imposition of Import Duties (NDPBM) = Cost + Insurance + Freight = CIF

1. for imported goods, not through PJT:

- Customs entry = CIF * entry tariffs (can 0%, 5%, 10% etc. see in BTBMI)
- VAT = (CIF + import duty) * 10%
- Income tax = (CIF + import duty) * 7.5% (2.5% if the catch had the API, or 15% when it did not have a Tax Identity Number (TIN)

2. for goods imported through the PJT or post office, the same procedure of calculation with the formula above, just before the price of goods - 50 USD:

for goods with prices below 50 dollars free / free do not pay customs duties and taxes
- Customs entry = (CIF) * entry tariffs
- VAT = (CIF + import duty) * 10%
- Income tax = (CIF + import duty) * 7.5%

example:
$ 500 minus the price of goods right to the goods shipment $ 50 = 500-50 = $ 450,
sis $ 50 -> CIF = 450 + 50 = 500, type of goods = handphone (MLP BTBMI final tariff = 0%) - Customs entry = (500) * 0% = 0
- VAT = (500 + 0) * 10% = 50 bucks
- Income Tax = (500 + 0) * 7.5% = 37.5 dollars
total bill = 50 + 37.5 = 87.5 dollars * 10232.75 = Rp. 896 000, - (rounding). NDPBM (exchange rate 1 usd = 10232.75 valid till date 19 July 2009 13)

Expatriate tax of Rp 93.4 billion

Jakarta, Kompas - Targets the government to reap taxes from foreigners, capital market, to foreign companies this year amounted to Rp 93.4 billion. This value is higher than 23 percent compared to the same target in the year 2009. DG efforts to collect tax revenue from foreigners is still colored by dishonest behavior.
"The revenue target that must be collected, Rp 93.4 billion, up to now we have to collect Rp 59.9 billion," said Head of the Regional Office of the Special Dgt Riza Noor Karim in Jakarta, Friday (17 / 9).

Tax Analysts, University of Indonesia, Darussalam, said that tax revenues increase, the Directorate General of Taxes need to strengthen anti-avoidance tax rules on international.

Tax avoidance mode used varies, ranging from transfer pricing, controlled foreign corporation, thin capitalization, and anti - treaty shopping.

Transfer pricing is the allocation of engineering effort antarbeberapa corporate profits in a single group of companies by utilizing international relations.

Controlled foreign corporation, foreign people in Indonesia could become a shareholder in a company in a country that is not required to pay taxes to the Indonesian.

Thin capitalization, the company that dominated their capital investment than the stock of debt (debt tend to be trimmer tax payments).

Anti-treaty shopping, a situation when someone can take advantage of the tax treaty the two countries where he earned income can be tax free because the countries they live does not make a deal with Indonesia.

"In minimizing its tax burden, usually a multinational corporation to run the schemes. However, it should be considered in making such provision should be based on international best practices so that provisions could be implemented without disturbing the business world, "said Darussalam.

Two criminal cases

Special Jakarta Regional Office of Directorate General of Taxes dealing with two cases of criminal tax violations, namely the security services company PT SI and companies engaged in mining, Bumi Resources.

Riza said, for the case of PT SI, president director, namely KD Mc K, has been sentenced to three years and six months in jail plus paying a fine of Rp 18 billion by the judges in South Jakarta State Court.

The verdict set

on August 20, 2010. PT SI sentenced to not pay income tax (income tax) of Article 21 that have been paid by workers and Value Added Tax (VAT).

Taxes that are not remitted it happened in 2004 and is expected to cost the state USD 1.6 billion of income tax violations of Article 21 and Rp 5.4 billion from VAT violations. On this tax penalty, KD Mc K fined twice.

Source: Kompas Daily, 18 September 2010

Indonesia Tax Holiday apply Early 2011

JAKARTA: The Directorate General of Taxation expects tax incentives like tax holidays can already into force as of January 1, 2011 after investment rules and the rules of income tax (PPh) finished harmonized.

Director General of Taxation Mochammad Tjiptardjo said Minister of Finance has formed a special team to study the form of new incentives as required taxholiday resemble the business world.

To that end, the Law No.25/2007 on Investments with U ndang U ndang No.36/2008 on Income Tax (Income Tax) was in harmony to be able to decide the form of incentives in the new jak ideal pa.

"His team has been formed by the minister, again working. Later in time, when completed we will report what rich holidaynya tax forms, it is again assessed. His ideal his January 1 (2011) can be applied, "he said on the sidelines of the halalbihalal Ministry of Finance, yesterday.

According to him, the harmonization of the laws is necessary to remember in the Income Tax Act does not set the tax holiday in the taxation regime in Indonesia. Wherever possible, the government avoided the law revision because the process will take some time.

Tjiptardjo explain the Indonesian government is already providing various incentives for business activities in the country. Only the demands of tax holiday from the business world that until now could not be realized due to hit the taxation rules.

As is known, the government is preparing rules and non-fiscal incentives that are specific to large-scale investment. It is still being discussed internally within the government that involve a number of ministries / agencies, among others
Ministry of Finance, Ministry of Industry, and Investment Coordinating Board (BKPM).

Meanwhile, the Ministry of Industry (Kemenperin) suggests agro-based processing industries and capital goods industries will receive fiscal incentives being formulated by the government.

The existence of fiscal incentives is expected to attract investors to develop value-added industries (value added industry) rather than exporting it in the form of raw products. This step was intended to suppress the importation of capital goods which triggered Indonesia's trade deficit.

"Sector [which will be given incentives] as agro namely rubber, coffee and others, principally because of the labor intensive manufacturing industry should be lifted but the value added industry must also grow," said Minister of Industry, MS. Hidayat.


Source: Bisnis Indonesia
Date: 15 September 2010

Kadin asks Corporate Income Tax to 16% Decrease

This demand for Indonesia's investment climate more attractive.

VIVAnews - Chamber of Commerce and Industry (Kadin) Indonesia proposed that the Income Tax (Income Tax) Tax - The Company currently available are derived from 25 percent to 16 percent. This demand for Indonesia's investment climate more attractive. Because, corporate income tax in Indonesia is much higher compared to neighboring countries.

Executor Duties Kadin chairman Adi Putra Tahir said, the decline in corporate income tax at least equal with neighboring countries, namely 16 percent. This must be done to attract investment funds ngendon in Singapore and Hong Kong.

"At least the same as Hong Kong and Singapore," said Adi in Jakarta, Monday, September 6, 2010.

According to Adi, lowering taxes can create greater tax revenue. Perhaps for the first year will be a decline, but for subsequent years will be increased as much revenue investment. "In theory if we lower the taxes, then we will receive greater," he said.

In addition to corporate income tax reduction, Chamber of Commerce also asked the government to abolish the current double tax dividends. When these dividends are subject to corporate income tax amounting to 25 percent and dividend tax amounting to 10 percent.

According to Adi, if the dividend tax removed, it will further attract investors. When this happens the dividend will be stored in banks and channeled into credit, so they avoid the tax. "People and companies that lend you credit is not taxable," he explained.

In addition, after Lebaran Chamber will meet with the Governor of Bank Indonesia to discuss the loan interest rate is still high. Ideally, according to Chamber of Commerce, credit interest no more than 4 percent of the deposit fund. "We are still 7-8 per cent credit interest on the deposit interest," he said.

Source- Vivanews.com -

Jakarta Consensus, RI Economic Concept Today

JAKARTA - The government seems to have a new designation for Indonesia's economic model. This, according to the statement by President Susilo Bambang Yudhoyono.

According to Coordinating Minister Hatta Rajasa, the concept of the Indonesian economy is now called the "Jakarta Consensus'. What is the Jakarta Consensus?

According to Hatta is a new economic model, in which the market became an important part of the economy, but government intervention can not be separated.

"If the Washington Consensus is a hallmark characteristic of a free market, free market where matters relating to Government intervention is almost not there. All delivered to the market mechanism, so the outline. Investment of all kinds. But the real role of big government," explained Hatta, when being met reporters in the office of Coordinating Minister for Economic Affairs, Jakarta, Wednesday (09/08/2010).

Contrary again to the Beijing Consensus, Hatta explained that the greater dominance of government intervention on market mechanisms.

China became one of the examples of countries which focuses on government intervention. "If Beijing Consensus, there was some kind of a state contensus. So heavy to how the country, although in fact he embraces the open market rules," he explained.

If the Jakarta Consensus, it is in the middle, where the market mechanism, it is necessary to make things efficient, but not all delivered to the market. "The government's role remained necessary for social protection is weak," he said.

With this new concept, according to Hatta, will not be too much distortion occurs in the public welfare. For those who can not afford, the government is still able to intervene to protect the rights of a citizen.

He demonstrated how when prices surged, the government can still make price stabilization. Other social protection is done as the Health Insurance, School Operational Assistance (BOS), and various forms of gelontoran funds for other community empowerment.

"That's called the Jakarta Consensus. The Government simply has a role in the Job Pro, Pro Poor, Pro Growth, and Pro Green. These are all different with the market mechanism," he said.

When do the Jakarta Consensus is realized? According to Hatta, the economic system is under way in Indonesia. Affirmations Jakarta Consensus done because after the failure of the crisis in 2008 found that so liberal regulations, regulatory elements of the tight little or no role of state or government.

Markets become bloated or not there is sufficient to regulate market instruments "As a result the impact of global crisis. That is why the government needs to hand. So in addition to visible hand there are also invisible hand" said Hatta
Source:- Okezone.com - Wednesday, September 8, 2010 -

Governments Give Special Incentives for Major Investors

JAKARTA. Major investors to invest in Indonesia would be special treatment. The government plans to give tax incentives to big investors such pampering.

Head of Investment Coordinating Board (BKPM) said Gita Wirjawan, the government is already drafting rules to give special incentives to large investors. She said that special incentives are not included in the revision of Government Regulation Number 62 Year 2008 concerning Income Tax Facilities (Income Tax) for Investments in Certain Areas for Business and / or Specific Areas.

As is known, the government also is revising the Government Regulation No. 62 year 2008 was. This revised to accommodate the downstream industries that have not entered into the list of recipients of income tax incentives.

Well, then large investors what was going to get preferential treatment? Gita said major investors would enjoy this special treatment when moving the economy in eastern Indonesia. In addition, investors should be able to absorb labor force of more than 3000 people. "Then for investment over U.S. $ 1 billion, or slightly below investment if he had but he's in Eastern Indonesia," he continued.

Unfortunately Gita can not be sure when a claim is an incentive to be issued government. So just wait.

Source: Kontan Online

Witholding Tax art 15 Shipping Cost will Rise

JAKARTA Performer shipping estimate income taxes (income tax) of Article 15 upon the receipt of revenue from the imposition of transport costs (freight) through domestic sea increased with the implementation of cabotage. Increasing the value of corporate income taxes paid by the national shipping companies to the country caused greater mastery of ships flying the Red and White on marine transportation activities in the country which has now reached 90.2% of the total share of domestic cargo.

Based on data from the Ministry of Transport, during the 2005 to 2009, control of foreign-flagged ships to load in the country is declining. In 2005, foreign transporting 91.88 million tons of cargo by freight costs of U.S. $ 1.8 billion. A year later reduced to U.S. $ 1.7 billion with a cargo of 85.44 million tonnes, while during 2007 and 2008 foreign ships still carry each 79.21 million tonnes and 50.12 million tons with each freight costs of U.S. $ 1, 6 billion and U.S. $ 1.0 billion.

Until late 2009, foreign-flagged vessels still carry as many as 28.1 million tons of commodities in the domestic transportation fee of U.S. $ 560 million. Next year 100% of commodities in the country shall be transported in accordance with Law No national vessels. 17 year 2008 about shipping.

Cabotage is a policy that requires the activities of transport by sea transportation in the country using the White and Red-flag vessels manned by a crew citizen of Indonesia.

This policy is based on Presidential Instruction No. 5 year 2005 regarding the National Sailing Industry Empowerment and KM No.71 year 2005 about the activities in the country Goods Transportation and Law. 17 year 2008 about shipping.

Until 2009, Indonesia managed to replace 13 foreign vessels for the transport of the oil and gas commodities, general cargo, coal, container, timber, rice, palm oil, fertilizer, cement, minerals, grains, liquid cargo, vegetables, fruits and fresh fish and grain crops.

This year, the government is targeting a foreign-flagged ships in the offshore transport sector (off shore) can be replaced by national fleets that starting January 1, 2011 there was no foreign-flag ships engaged in domestic transportation.

Tax Refund

Refund of the overpayment (refund) occurs when the amount of tax credits or tax paid is greater than the amount of tax payable or the tax payment that should not be payable, with notes WP had no other tax debts.

Refund Procedures for Payment of Tax Pros:

1. Taxpayers (WP) may apply for restitution to the Director General of Taxes through the Tax Office (KPP), a local.
2. Director General of Taxation after the inspection, issue of Tax Overpayment (overpayment) in the case:
   • For income tax, if the tax credit amount is greater than the amount of tax payable or the tax payment that should not be payable;
   • For VAT, if the tax credit amount is greater than the amount of tax payable or the tax payment that should not be payable. If there are outstanding taxes levied by the collector of VAT, the tax amount payable is the amount of output tax after deducting tax which the VAT is levied by the collector;
   • For the GOODS, if the tax paid is greater than the amount of tax owed, or the tax payment that should not be payable.
3. Overpayment issued by the Director General of Taxes no later than 12 (twelve) months from receipt of complete application letter, except for certain activities otherwise determined by the decision of the Director General of Taxation.
4. If within 12 months from the request for restitution, the Director General of Taxation did not give a decision, the applicant will be granted, and overpayment issued at the latest within 1 (one) month after the period ends.