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