tag:blogger.com,1999:blog-40869660341407413392024-02-19T23:20:16.041+07:00Indonesian Tax Learningtaxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.comBlogger69125tag:blogger.com,1999:blog-4086966034140741339.post-58216932704510415322013-09-10T12:40:00.002+07:002013-09-10T12:42:18.782+07:00Indonesian Taxation and Economic Terminology in English<b>KPP Badora</b> (Badan dan Orang Asing) = Foreign Corporate and Individual (Badora) Tax Service Office<br />
<b>BKPM</b> (Badan Koordinasi Penanaman Modal) = Capital Investment Coordinating Board<br />
<b>BPKP</b> (Badan Pengawasan Keuangan dan Pembangunan) = The Development Finance Comptroller / State Comptroller Agency<br />
<b>BAPEPAM </b>(Badan Pengawasan Pasar Modal) = Capital Market Supervisory Board<br />
<b>BPSP</b> (Badan Penyelesaian Sengketa Pajak) = Tax Dispute Settlement Agency; <span style="color: blue;"><i>was replace with <b>PP</b></i></span><br />
<b>BAPPENAS</b> (Badan Perencanaan Pembangunan Nasional) = National Development Planning Board<br />
<b>BPN</b> (Badan Pertanahan Nasional) = National Land Agency<br />
<b>BUPLN</b> (Badan Urusan Piutang dan Lelang Nasional) = The State Agency for Receivables and Auctions<br />
<b>BUT</b> (Bentuk Usaha Tetap) = Permanent Establishment (PE)<br />
<b>Bank Persepsi</b> = Tax Payment Bank<br />
<b>BKP</b> (Barang Kena Pajak) = Taxable Good(s)<br />
<b>BBN</b> (Bea Balik Nama) = Title Transfer Tax (esp. vehicles)<br />
<b>BM</b> (Bea Meterai) = Stamp Duty<br />
<b>BPHTB</b> (Bea Pengalihan Hak Atas Tanah & Bangunan) = Land and Building Title Transfer Duty<br />
<b>Berita Acara Hasil Pemeriksaan</b> = Acknowledgement of Audit Results<br />
<b>Berita Acara Pemusnahan</b> = Destruction Report/Destruction Declaration<br />
<b>Buku Petunjukkan Pengisian</b> = Instruction Booklet<br />
<b>DPP</b> (Dasar Pengenaan Pajak) = Tax (Imposition) Base/Tax Basis<br />
<b>DJBC</b> (Direktorat Jenderal Bea dan Cukai) = The Directorate General of Customs and Excise<br />
<b>DJLK</b> (Direktorat Jenderal Lembaga Keuangan) = The Directorate General of Financial Institutions<br />
<b>DJP</b> (Direktorat Jenderal Pajak) = The Directorate General of Taxation (DGT)<br />
<b>Direktur Peraturan Pajak</b> = The Director of Tax Regulations<br />
<b>Faktur Pajak</b> = Tax Invoice(s)<br />
<b>Faktur Pajak Pengganti</b> = Revised Tax Invoice(s)<br />
<b>Fiskal Luar Negeri</b> = Exit Tax or Departure Tax<br />
<b>IKPI</b> (Ikatan Konsultan Pajak Indonesia) = Indonesian Tax Consultants Association<br />
<b>JKP</b> (Jasa Kena Pajak) = Taxable Service(s)<br />
<b>KPP</b> (Kantor Pelayanan Pajak) = Tax Service Office(s)<br />
<b>Karikpa</b> (Kantor Pemeriksaan dan Penyidikan Pajak) = Tax Audit and Investigation Office<br />
<b>KPKN</b> (Kantor Perbendaraan dan Kas Negara) = The State Treasury<br />
<b>KPP PMB</b> (Kantor Pelayanan Pajak Perusahaan Masuk Bursa) = Tax Service Office for Publicly Listed Companies<br />
<b>KUP</b> (Kantor Umum dan Tata Cara Pajak) = General Provisions and Tax Procedures<br />
<b>Kanwil</b> (Kantor Wilayah) = Regional Office<br />
<b>KB</b> (Kawasan Berikat) = Bonded Zone(s)<br />
<b>KAPET</b> (Kawasan Pengembangan Ekonomi Terpadu) = Integrated Economic Development Zone(s)<br />
<b>Kepala Bidang Rikpan</b> (Kepala Bidang Pemeriksaan dan Penyidikan Pajak) = Division Head of The Tax Audit and Investigation Office<br />
<b>Kasi</b> (Kepala Seksi) = Section Head(s)<br />
<b>Kasubdit</b> (Kepala Sub-Direktorat) = Sub-Directorate Head(s)<br />
<b>Kasubsi</b> (Kepala Sub-Seksi) = Sub-Section Head(s)<br />
<b>KEPMEN</b> (Keputusan Menteri) = Ministerial Decree(s)<br />
<b>UU KUP</b> (Undang-Undang Ketentuan Umum dan Tata Cara Perpajakan) = The General Tax Provisions and Procedures Law<br />
<b>Ketua Majelis</b> (BPSP) = Presiding Judge (Tax Dispute Settlement Agency)<br />
<b>KLU</b> (Klasifikasi Lapangan Usaha) = Business Field Classification<br />
<b>KBH</b> (Kontrak Bagi Hasil) = Production-Sharing contract (PSC)<br />
<b>KK</b> (Kontrak Karya) = Contract of Work (CoW)<br />
<b>KP</b> (Kuasa Pertambangan) = Delegated Mining Rights<br />
<b>NJKP</b> (Nilai Jual Kena Pajak) (PBB) = Taxable Sales Value (L and B Tax)<br />
<b>NJOP</b> (Nilai Jual Objek Pajak) (PBB) = Land and Building Tax Imposition Base, or Tax Object Sales Value<br />
<b>NPPKP</b> (Nomor Penegasan Pengusaha Kena Pajak) = Taxable VAT Entity Confirmation Number<br />
<b>NPWP</b> (Nomor Pokok Wajib Pajak) = Tax ID Number / Tax Registration Number<br />
<b>NPP</b> (Nota Perhitungan Pajak) = Tax Calculation/Computation Memo<br />
<b>PBB</b> (Pajak Bumi dan Bangunan) = Land and Building Tax (L and B tax)<br />
<b>Pajak Keluaran</b> = Output VAT<br />
<b>Pajak Masukan</b> = Input VAT<br />
<b>Pajak Pembangunan</b> = Development Tax (for district/regency level)<br />
<b>PPh</b> (Pajak Penghasilan) = Income Tax<br />
<b>PPnBM</b> (Pajak Penjualan atas Barang Mewah) = Luxury Sales Tax (LST), or Sales Tax on Luxury Goods<br />
<b>PPN</b> (Pajak Pertambahan Nilai) = Value Added Tax (VAT)<br />
<b>Pajak Pertambahan Nilai Tidak Dipungut</b> = Non-Collected VAT<br />
<b>PTLL</b> (Pajak Tidak Langsung Lain) = Other Indirect Taxes<br />
<b>PE</b> (Pedagang Eceran) = Retail Merchant / Retail Trader<br />
<b>Pekerjaan Bebas</b> = Self-Employment / Freelance Work<br />
<b>Pembangunan Sendiri</b> = Independent Construction<br />
<b>PEB</b> (Pemberitahuan Ekspor Barang) = Export Declaration(s)<br />
<b>PHP</b> (Pemberitahuan Hasil Pemeriksaan) = Notification of Tax Audit Findings<br />
<b>PIB</b> (Pemberitahuan Impor Barang) = Import Declaration(s)<br />
<b>PLK</b> (Pemeriksaan Lengkap Kantor) = Comprehensive Office Tax Audit(s)<br />
<b>PLL</b> (Pemeriksaan Lengkap Lapangan) = Comprehensive Field Tax Audit(s)<br />
<b>PSK</b> (Pemeriksaan Sederhana Kantor) = Simple Office Tax Audit(s)<br />
<b>PSL</b> (Pemeriksaan Sederhana Lapangan) = Simple Field Tax Audit(s)<br />
<b>PP</b> (Pengadilan Pajak) = Tax Court <br />
<b>Pemeteraian Kemudian</b> = Postdated Duty Stamp(s)<br />
<b>Pemungut Pajak </b>= VAT Collector<br />
<b>PMA</b> (Penanaman Modal Asing) = Foreign Capital Investment<br />
<b>PMDN</b> (Penanaman Modal Dalam Negeri) = Domestic Capital Investment<br />
<b>PTKP</b> (Penghasilan Tidak Kena Pajak) = Non-Taxable Income<br />
<b>PKP</b> (Pengusaha Kena Pajak) = VAT Enterprise(s) / Taxable Enterprise(s)<br />
<b>PKP PE</b> (Pengusaha Kena Pajak Pedagang Eceran) = Retail-Trade Taxable Enterprise(s)<br />
<b>PKP Rekanan</b> (Pengusaha Kena Pajak Rekanan) = VAT-Collector Counterpart(s)<br />
<b>Permohonan Peninjauan Kembali</b> = A Request for Reconsideration / Judicial Review<br />
<b>Permohonan Penundaan Pajak</b> = Tax Deferment Request(s)<br />
<b>Pertimbangan Risalah Penyelesaian Keberatan</b> = (Tax) Auditor’s Objection Memorandum<br />
<b>Peraturan Menteri Keuangan</b> = Minister of Finance Regulation<br />
<b>Restitusi Pajak</b> = Tax Refund(s)<br />
<b>Secara Jabatan</b> = Ex Officio<br />
<b>Seksi Penerimaan dan Keberatan</b> = Receiving and Objection Section<br />
<b>Surat Banding Pemohon</b> = An Appeal(s)<br />
<b>Surat Bantahan Pemohon</b> = Response to An Appeal Summation<br />
<b>SE</b> (Surat Edaran) = Circular (Letter)<br />
<b>Surat Keberatan</b> = Objection (Letter)<br />
<b>Putusan Banding</b> = Appeal Decision (Letter)<br />
<b>Surat Keputusan Keberatan</b> = Objection Decision (Letter)<br />
<b>SKKPP</b> (Surat Keputusan Kelebihan Pembayaran Pajak) = Tax Overpayment Decision (Letter)<br />
<b>SKPIB</b> (Surat Keputusan Pemberian Imbalan Bunga) = Interest Repayment Decree<br />
<b>SKPPKP</b> (Surat Keputusan Pengembalian Pendahuluan Kelebihan Pajak) = Advance Tax Overpayment Refund Decree<br />
<b>SKPPKP</b> (Surat Keputusan Pengukuhan Pengusaha Kena Pajak) = Taxable Enterprise Confirmation (Letter)<br />
<b>SKB</b> (Surat Keterangan Bebas) = Exemption Certificate(s)<br />
<b>SKF</b> (Surat Keterangan Fiskal) = Tax Clearance Certificate/Letter<br />
<b>SKFLN</b> (Surat Keterangan Fiskal Luar Negeri) = Fiscal Exit (Departure) Tax Payment Slip<br />
<b>SKT</b> (Surat Keterangan Tarif) = Tax Relief Certificate<br />
<b>SKP</b> (Surat Ketetapan Pajak) = Tax Assessment (Letter)<br />
<b>SKPKB</b> (Surat Ketetapan Pajak Kurang Bayar) = Tax Underpayment Assessment (Letter)<br />
<b>SKPKBT</b> (Surat Ketetapan Pajak Kurang Bayar Tambahan) = Additional Tax Underpayment Assessment (Letter)<br />
<b>SKPLB</b> (Surat Ketetapan Pajak Lebih Bayar) = Tax Overpayment Assessment (Letter)<br />
<b>SKPN</b> (Surat Ketetapan Pajak Nihil) = Nil Tax Assessment (Letter)<br />
<b>Surat Pajak Pertambahan Nilai Tidak Dipungut</b> = Non-Collected VAT Certificate<br />
<b>Surat Paksa</b> = Distress Warrant<br />
<b>Surat Panggilan</b> = Summons (Letter)<br />
<b>SPS</b> (Surat Panggilan Sidang) = Hearing Summons (Letter)<br />
<b>SPHP</b> (Surat Pemberitahuan Hasil Pemeriksaan) = Notification of Tax Audit Findings<br />
<b>SPT Masa</b> (Surat Pemberitahuan Masa) = Periodic Tax Return (usually monthly)<br />
<b>SPOP</b> (Surat Pemberitahuan Obyek Pajak) = Tax Object Notification (Letter) (L&B Tax)<br />
<b>SPPT</b> (Surat Pemberitahuan Pajak Terutang) (PBB) = Notification of Tax Due (L&B Tax)<br />
<b>SPT</b> (Surat Pemberitahuan Tahunan) = Annual Tax Return<br />
<b>SPK</b> (Surat Peninjauan Kembali) = Request for Reconsideration<br />
<b>Surat Peringatan</b> = Reminder Letter<br />
<b>SPMKP</b> (Surat Perintah Membayar Kelebihan Pajak) = Tax Overpayment Refund Order<br />
<b>SPPP</b> (Surat Perintah Pemeriksaan Pajak) = Tax Audit Order, or Tax Audit Instruction Letter<br />
<b>SPPSS</b> (Surat Perintah Penagihan Seketika dan Sekaligus) = Immediate and Total Tax Collection Order(s)<br />
<b>SPPB</b> (Surat Perintah Penyerahan Barang) = Delivery Order(s)<br />
<b>Surat Pernyataan Persetujuan</b> = Declaration of Acceptance<br />
<b>Surat Pernyataan Persetujuan atas Hasil Pemeriksaan Pajak</b> = Declaration of Acceptance of (The) Tax Audit Findings<br />
<b>SPPB</b> (Surat Persetujuan Pengeluaran Barang) = Approval for The Export of Goods, Goods Export Approval<br />
<b>SSBC</b> (Surat Setoran Bea Cukai) = Excise Payment Slip(s)<br />
<b>SSBPHTB</b> (Surat Setoran Bea Perolehan Hak atas Tanah dan Bangunan) = Land and Building Duty Payment Slip<br />
<b>SSP</b> (Surat Setoran Pajak) = Tax Payment Slip(s)<br />
<b>SSPNBP</b> (Surat Setoran Penerimaan Negara Bukan Pajak) = Non-Tax State Revenue Payment Slip<br />
<b>SS (Surat Sita)</b> = Confiscation Letter(s)<br />
<b>STP</b> (Surat Tagihan Pajak) = Tax Collection Letter(s)<br />
<b>Surat Teguran</b> = Warning Letter(s)<br />
<b>Surat Uraian Banding</b> = Appellee’s Brief<br />
<b>TBPFLN</b> (Tanda Bukti Pajak Fiskal Luar Negeri) = Fiscal Exit Tax Payment Slip(s)taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-67993391322804511002013-08-26T14:28:00.001+07:002013-08-26T14:28:09.312+07:00VAT Refund Service at Polonia Airport, Medan is No Longer AvailableCause of the moving of the Airport in Medan, North Sumatera from Polonia Airport to Kuala Namu Airport, Indonesian Directorate General of Tax make an announcement using Announcement Number PENG-08/PJ.09/2013. The announcement are:<br />
<br />
Since 24 July 2013 at 11.59 PM local time, VAT Refund counter at Polonia Airport in Medan is no longer available for VAT Refund service.<br />
<br />
VAT Refund counter will be replaced to the new Medan International Airport in Kuala Namu, Medan. During the moving, we apologize for not giving VAT Refund service.<br />
<br />
We planned to transfer VAT Refund counter from Polonia Airport, Medan to Kuala Namu Airport, Medan soon. We will inform publically through our website (www.pajak.go.id) and mass media by the time VAT Refund counter at Kuala Namu Airport, Medan is ready to serve VAT Refund for tourists.<br />
<br />
We apologize for the incovenience. Thank you very much for your kind understanding.<br />
<br />
Director of Dissemination, Services and Public Relations<br />
<br />
signed<br />
<br />
Kismantoro Petrustaxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-16760063651201789962013-05-31T09:12:00.001+07:002013-05-31T09:12:06.319+07:00Govt cuts tax obligations for oil and gas companies<div style="text-align: justify;">
In a bid to bolster oil production at a time of dwindling reserves, the
government is trimming down the tax obligations of petroleum companies. <br /><br />Oil
and gas contractors would be exempt from import duties, value-added tax
(PPN) and luxury-goods sales tax as of April this year under the new
Finance Ministry’s regulation PMK 70/2013.<br /><br />Upstream regulatory
task force SKKMigas’ risk management and tax chief Bambang Yuwono said
over the weekend that the new regulation would be applied to companies
actively exploring new sites as well as contractors at the exploitation
stage.<br /><br />“The new regulation is expected to boost exploration activities and production,” he said in a statement.<br /><br />Indonesia
quit the Organization of Petroleum Exporting Countries (OPEC) in 2008
after aging oil fields and a lack of large, profitable reserves meant it
was no longer a net importer.<br /><br />In the first-three months of this
year, the regulator claimed average daily oil output reached 830,900
barrels per day (bpd) — much less than the 1 million bpd produced in the
early 2000s. In addition, investment for the sector remains low.<br /><br />Of
the US$26.2 billion investment expected this year, only $2.7 billion
would come from a total 200 contractors for the exploration and drilling
of 75 oil and gas wells.<br /><br />Given this fact, SKKMigas secretary Gde Pradnyana said the government’s most recent move would be appreciated.<br /><br />“The
risk of failure in oil exploration is very high. Therefore, they [the
investors] should not be burdened further with taxes,” he said.<br /><br />Research
by the Wood Mackenzie Group earlier this year showed that Malaysia had
surpassed Indonesia in 2012 as the key player in the upstream
hydrocarbon industry in Southeast Asia.<br /><br />The Edinburgh-based
global energy oil and gas research specialist noted that while Malaysia
discovered 1.4 billion barrels of oil equivalent (boe) last year — or 72
percent of the total discoveries in the region — Indonesia only
discovered 13 million boe of new reserves in 20 new oil and gas fields —
a mere 14 percent.<br /><br />This year, SKKMigas plans to drill 258
exploration wells, 1,178 development wells and 1,094 work-over wells in
addition to a 18,751-kilometer 2-D seismic survey and a
22,298-square-kilometer 3-D seismic survey.<br /><br />Last year, only 80
new wells were discovered, far below the annual target of 250. Only 51
turned out to be promising — continuing the trend of previous years.<br /><br />In
addition, SKKMigas proposed that the government lowered the average
daily output target to 840,000 bpd from the previous target of 900,000
bpd under the 2013 state budget.<br /><br />With the Cepu block in Central
Java (operated by US-based ExxonMobil) projected to produce 165,000 bpd
by October 2014, the effort to boost production to 1 million bpd is more
realistic.<br /><br />Separately, the Indonesian Petroleum Association
(IPA) deputy chairman Sammy Hamzah said the association appreciated that
the government had shown commitment to the oil exploration sector.<br /><br />Sammy,
also president director of coal bed methane (CBM) contractor PT
Ephindo, said the previous tax obligations — on top of high costs and
the risk of exploration activities — had further lowered investment.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="color: blue;"><span style="font-size: x-small;"><i>Source: thejakartapost.com</i></span></span> </div>
taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com1tag:blogger.com,1999:blog-4086966034140741339.post-54711086492258118052013-05-31T08:49:00.005+07:002013-05-31T08:49:51.547+07:00EU imposes anti-dumping duty on RI's biodiesel<div style="text-align: justify;">
The European Union announced on Tuesday that it will impose an anti-dumping duty on Indonesian biodiesel.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The bloc’s trade body, European Commission (EC), took the decision after an investigation revealed that biodiesel imported from Indonesia at below market price had hurt its biodiesel producers.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The EC said it had decided to impose duties amounting to 10.6 percent of the total price on biodiesel imported from Indonesian producers, including Pelita Agung Agrindustri.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Similar anti-dumping duty would also be imposed on biodiesel from Argentina, it said.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The tariff is set to take effect on Wednesday. It will stay in place for the next six months and can be extended for five years. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="color: blue;"><span style="font-size: x-small;"><i>Source: Thejakartapost.com</i></span></span></div>
taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com1tag:blogger.com,1999:blog-4086966034140741339.post-52615653508314628472012-10-24T08:50:00.000+07:002012-10-24T08:50:17.818+07:00Tax Regulation for Transfer Pricing Transaction<!--[if gte mso 9]><xml>
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<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">The
Directorate General of Taxation (DGT) has published the regulation about
transfer pricing for Indonesian Taxpayers. The Director General of Taxation
Regulation Number PER-43/PJ/2010 dated September 6, 2010 as amended by The
Director General of Taxation Regulation Number PER-32/PJ/2011 about Application
of Common Business Practice and Arm’s Length Principle in Transaction between
Taxpayers and Parties who have a special Relationship, represents the first
specific guidance to Indonesian taxpayers since the Income Tax Law amendment in
1983. So far the determination of transfer pricing is only determined only by
the DGT. But now, by the PER-43/PJ/2010 as amended by PER-32/PJ/2011,
Indonesian Taxpayers compulsory to prepare the transfer pricing documentation.
PER-43/PJ/2010 as amended by PER-32/PJ/2011 are based on the Organization for
Economic Cooperation and Development (OECD) Transfer Pricing Guidelines for
Multinational Enterprises and Tax Administrations (the OECD Guidelines).<br />
<br />
<b>1. Scope of Regulation</b><br />
PER-43/PJ/2010 as amended by PER-32/PJ/2011 applies to cover the determination of
the arm’s length principle and common business practice on transfer pricing transactions
conducted by domestic taxpayers or permanent establishments (PEs) in Indonesia
with overseas taxpayers. This regulation also applies to related party
transactions conducted with domestic taxpayers or permanent establishments in
Indonesia, if such transaction are carried out with the intention to take
advantage of different tax rates, which include taxpayers:</span></div>
<div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify; text-indent: -14.2pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">a.<span style="mso-tab-count: 1;"> </span>who
are subject to final and non final tax in certain industries; </span></div>
<div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify; text-indent: -14.2pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">b.<span style="mso-tab-count: 1;"> </span>taxpayers
who are subject to sales tax on luxury goods; and</span></div>
<div class="MsoNormal" style="margin-left: 14.2pt; text-align: justify; text-indent: -14.2pt;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">c.<span style="mso-tab-count: 1;"> </span>transactions
conducted with oil and gas contractors.</span></div>
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><br />
<br />
<b>2. Implementation of the arm’s length principle</b><br />
Taxpayers that make the transactions between related parties should be
implemented the arm’s length principle (ALP). ALP should be implemented by the
following steps:<br />
a. Perform a comparability analysis and identify comparables;<br />
b. Determine the most appropriate Transfer Pricing Method;<br />
c. Apply the ALP to the tested transaction based on the result of the
comparability analysis and the selected transfer pricing method;<br />
d. Document each step of the process in determining the arm’s length price or
profit in consideration of the prevailing tax regulations.<br />
<br />
The taxpayers is not obliged to implement the arm’s length principle if the
transaction amount with each related party in one year does not exceed Rp 10
billion.<br />
<br />
<b>a. Comparability Analysis</b><br />
<br />
In conducting proportionality analysis as referred to in point 2 letter a
above, must consider the following matters:<br />
- transactions between the taxpayer and the entity has the Related Parties are
considered comparable to transactions conducted between parties who do not have
in terms of special Relationship:<br />
* there is no material difference or significant conditions that could affect
the price or income of the comparable transactions; or<br />
* there are different conditions, but can be adjusted to eliminate the
influence of a material or significant differences between these conditions on
prices or profits;<br />
- If the Internal and External Comparative Data is available with the same
level of proportionality, the taxpayer must use the Internal Comparative Data
for the determination of Fair Price or Fair Profit.<br />
<br />
The comparability analysis outlined is based upon the five comparability
factors contained in the OECD Guidelines, are as follows:<br />
a) Characteristics of property or services;<br />
b) Functional profile of parties involved;<br />
c) Contractual terms;<br />
d) Economic conditions; and<br />
e) Business strategies.<br />
<br />
Taxpayers required to document the steps, studies, and results of studies in
conducting proportionality analysis and determination of comparison, the use of
Comparative Data Internal and/or Comparative Data External and keep books, the
basic records, or documents in accordance with applicable regulations.<br />
<br />
<b>b. Selection the Transfer Pricing Methods</b><br />
<br />
OECD apply five methods of pricing that endorsed by the DGT and formally
recognized in the Indonesian Tax Law. Taxpayers are required to apply the
methods to pricing are:<br />
a) Comparable Uncontrolled Price (CUP) method;<br />
b) Resale Price Method (RPM);<br />
c) Cost Plus Method (CPM);<br />
d) Profit Split Method (PSM); or<br />
e) Transactional Net Margin Method (TNMM).<br />
<br />
<b>c. Format of Transfer Pricing Documentation</b><br />
<br />
PER-43/PJ/2010 as amended by PER-32/PJ/2011 requires that a taxpayer must be
present the transfer pricing documentation consist of a minimum:<br />
a) Overview of the company such as group structure, organization chart,
shareholding structure, business operations, list of competitors and
description of business environment;<br />
b) Price policy and/or and cost allocation policy;<br />
c) Comparability analysis (i.e. the five comparability factors);<br />
d) List of selected comparables; and<br />
e) Application of the selected method.<br />
<br />
As long as these minimum requirement, the specific format and contents of the
transfer pricing documentation may be determined by the taxpayer.<br />
<br />
<b>d. Transfer Pricing Adjustments by the DGT</b><br />
<br />
In PER-43/PJ/2010 as amended by PER-32/PJ/2011 states that the DGT has the
authority to re-determine the amount of related party income and deductible
expenses in calculating the taxable income of a taxpayer. The DGT adjustments
may be based on the taxpayer’s own transfer pricing method and documentation.
If the taxpayer’s documentation is insufficient, the DGT will conduct its own
analysis to re-determine the related party income and/or expense amounts.<br />
If there are evidences of a tax crime, then the DGT may perform an
investigation as outlined in Article 44 Law No. 16 Year 2009 about tax
administration law.<br />
<br />
<b>e. Correlative Adjustments</b><br />
<br />
The DGT has the authority to make correlative adjustments to a taxpayer’s
income as a follow up to a primary transfer pricing adjustment made by the DGT
or an overseas tax authority to the income of one of the taxpayer’s related
parties. In this regulation does not provide detailed guidance on the process
that taxpayers must follow to seek such a correlative adjustment.<br />
(c)taxlearning.blogspot.com</span><br />
<br />
<i><b><span style="font-family: "Times New Roman","serif"; font-size: 12pt;">Related Topic:</span></b></i><br />
<span style="font-family: "Times New Roman","serif"; font-size: 12pt;"><a href="http://taxlearning.blogspot.com/2011/05/transfer-pricing.html">Transfer Pricing</a> </span>taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-86290409986001596552012-04-02T18:30:00.000+07:002012-04-02T18:31:29.592+07:00Tax office eyes big fish to meet this year’s Rp 1,000 T target<div style="text-align: justify;">The tax office aims to hunt down oil and gas, coal, and crude palm oil (CPO) companies who are not paying tax in order to achieve the government tax revenue target of more than Rp 1,000 trillion (US$109 billion) this year, officials said on Tuesday.<br /><br />The Finance Ministry’s director general for taxation, Fuad Rahmany, said his office would increase supervision of major tax paying sectors, including mining, oil and gas, and CPO, so that the hefty profits and sales that the companies made translated into income and value- added taxes.<br /><br />“One of the breakthroughs is that we will use a surveyor so that volumes of production, exports and sales can be calculated accurately. We will also prepare tax branches specifically designated to handling sectors like mining, coal, CPO, oil and gas,” he told a press briefing.<br /><br />There are 9,000 businesses in the mining sector of Indonesia, which is the world’s largest exporter of coal and CPO, Fuad said, adding that without the help of the surveyor, the tax office’s database would not be sufficient to check the accuracy of sales and income data that the companies filed to the tax office.<br /><br />“In accordance with the law, we have adapted a self-assessment taxation method, and therefore we should know if taxpayers are accurately declaring their income and sales,” he added.<br /><br />Indonesian Employers Association (Apindo) Sofjan Wanandi said that the so-called “illegal” mining firms had a total combined output of between 40 million to 50 million tons, indicating the tax office’s<br />untapped potential.<br /><br />“We all know that there are many mining firms that do not pay taxes. As long as the tax office’s plan are carried out fairly and all pay their taxes accordingly, we support the office and will help ease their work with our networks,” he said.<br /><br />“Efforts need to be made to make sure that the government collects its revenue so that the funds can be used to speed up infrastructure development.”<br /><br />The notoriously corrupt tax office is currently undergoing massive reform following the high-profile case of graft convict Gayus H. Tambunan, who took bribes from corporations to help them illegaly revise down their tax obligations.<br /><br />The tax office has also planned incentives for smaller businesses to make them pay their taxes, and focus on collection from small and medium enterprises (SMEs) this year, said Syarifuddin Alsjah, a director of taxation regulation.<br /><br />“There are plenty of SMEs; there are millions of them, but the contribution to taxation is still low because they have been treated like regular taxpayers, like in the mining sector. This complicates small and medium business players,” he said.<br /><br />The new regulation on taxes for SMEs is still being finalized, Syarifuddin said, but officials have planned a 2 percent annual income tax for businesses with revenue of between Rp 300 million and Rp 4.8 billion, while those with revenue of less than Rp 300 million will be charged 0.5 percent.<br /><br />Only 466,000 firms of the 12.9 million active businesses and 22.6 million total enterprises in the country paid their taxes in 2010. On the individual taxpayer front, 8.5 million people paid their taxes last year, compared with 110 million active workers and a total population of 240 million.<br /><br />The number of taxpayers is expected to top 40 million by 2014 from almost 22 million in 2011.<br /><br />The tax census, launched at the end of September last year, will visit 2 million to 4 million potential taxpayers this year despite technical issues ranging from staff performance and excuses from taxpayers to avoid census agents, such as citing bad weather, Fuad said. He said he expected 2.5 million new taxpayers in 2012. “To reach the very high tax revenue target of Rp 1,032 trillion, we need more taxpayers,” he added.<br /><br /><span style="color: rgb(0, 0, 153);font-size:85%;" ><span style="font-style: italic;">Source: thejakartapost.com</span></span></div>taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-14469268495177314372012-04-02T18:22:00.000+07:002012-10-24T14:40:13.343+07:00Govt can now probe tax evasion overseas<div style="text-align: justify;">
Indonesian tax authorities are now able to probe tax evasion allegedly conducted by foreign companies with business interests in Indonesia under existing tax treaties on prevention of double taxation.<br />
<br />
Taxation Director General Fuad Rahmani said that Indonesia had signed tax treaties on prevention of double taxation and on exchanges of tax information with most G-20 countries including the United States, Japan and Australia.<br />
<br />
“All countries that have signed the agreement will cooperate in taxation data exchanges and collections,” Fuad told The Jakarta Post by phone on Wednesday.<br />
<br />
“This agreement opens more opportunities for us to collect taxes abroad,” he added. Fuad also said that he had issued a standard operating procedure (SOP) for his officers on how to probe the finances of Indonesian companies’ taxation data abroad.<br />
<br />
According to the SOP, a copy of which has been obtained by the Post, Indonesian tax authorities would cooperate with local tax officers in probing companies that obtained income from their businesses in Indonesia.<br />
<br />
“Our officers will not directly probe the companies, but the local tax authorities abroad will,” Fuad said. On the other hand, foreign tax authorities are also able to ask Indonesian tax officers for assistance in probing tax fraud such as tax evasion conducted by their companies that operate in Indonesia.<br />
<br />
Indonesian Corruption Watch (ICW) researcher Firdaus Ilyas said that the agreement should also enable the taxation directorate general to intensify tax collections in order to support the state income.<br />
<br />
“With this agreement, we can exchange data with other countries. So, this is one of the tools to optimize our tax income. This agreement would also enable us to uncover the practices of transfer pricing, commonly conducted by Indonesian multinational companies abroad,” he said.<br />
<br />
Transfer pricing refers to the practice of transferring goods and services from one responsibility center to another or from one company to another that belongs to the same group.<br />
<br />
Multinational companies usually use this method to avoid paying a higher tax rate in their country of origin. For example, an Indonesian multinational corporation can export its goods at a low price to a Singapore-based company, which it partly owns. The goods are then exported again at a higher price from Singapore, which has a lower tax rate than Indonesia, and this practice allows the Indonesian corporation to avoid paying higher taxes to the Indonesian government.<br />
<br />
“These transfer pricing practices are common but we have yet to see firm sanctions imposed upon companies that use this kind of tax manipulation. We rarely see these companies brought to justice for conducting transfer pricing,” Firdaus said.<br />
<br />
<span style="font-size: 85%;">Source: <a href="http://www.thejakartapost.com/news/2012/01/06/govt-can-now-probe-tax-evasion-overseas.html">thejakartapost.com</a></span></div>
taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-64836321510103814882011-11-16T13:40:00.002+07:002011-11-16T13:44:24.085+07:00Tax Regulations with Clarifications on the Beneficial Ownership Test<div style="text-align: justify;">On 30 April 2010, the Indonesian Directorate General of Taxation revised two key tax regulations for ruling the international taxation.<br /></div><h3 style="text-align: justify;">The New Regulations</h3><div style="text-align: justify;"> </div><p style="text-align: justify;">Regulations PER-24/PJ/2010 and PER-25/PJ/2010 amend regulations PER-61/PJ/2009 and PER-62/PJ/2009 issued late last year. The revisions clarify three of the criteria, all of which must be met in order for an income recipient to be treated as a beneficial owner of the income for treaty purposes.</p><div style="text-align: justify;"> </div><p style="text-align: justify;">In short, the revised regulations provide welcome clarity to the application of the beneficial ownership test, which significantly increases certainty for structuring international transactions involving Indonesian companies. The revised regulations are generally encouraging both for offshore equity holding structures, as well as the prospect of a well structured high-yield debt issuance by an offshore holding company or subsidiary, where a substantial portion of the issuance is used onshore.<br /><br />This alert summarizes the clarifications to these criteria, and analyzes the possible implications with respect to the use of offshore holding companies and high yield issuances in Indonesia.</p><div style="text-align: justify;"> </div><p style="text-align: justify;">The key clarifications are as follows.</p><div style="text-align: justify;"> </div><ol style="text-align: justify;"><li><strong><em>The income recipient has an 'active operation or business'.</em></strong> This criterion may be evidenced by the foreign tax payer having business operations or activities in Indonesia that demonstrates costs incurred, work applied or effort directly associated with the business operations or activities in order to obtain, collect and maintain income, including significant efforts to main the business continuity of the entity.</li><li><strong><em>The income recipient is 'subject to tax in its jurisdiction of residence' on the Indonesia sourced income.</em></strong> This criterion is met if the foreign tax payer is subject to tax legislation generally in its jurisdiction of residence, but does not require that the foreign tax payer necessarily pays such tax, whether due to a zero percent (0%) domestic rate of tax, an exemption from taxation due to a specific concession subject to objective requirements, or does not bear the economic burden of taxation, including where this is due to tax withheld by a foreign government, deferred or not collected.</li><li><strong><em>Fifty percent (50%) or more of the Indonesia sourced income is not used to satisfy an obligation to another party in the form of interest, royalty or other reward.</em></strong> This criterion is met if not more than fifty percent (50%) of the foreign tax payer's <em><strong>total income</strong></em>, of any type or from any sources, as disclosed in the unconsolidated financial statements of the foreign tax payer, is used to meet obligations to third parties. This expressly excludes the payment of benefits to employees in the ordinary course of an employee-employer relationship, any other costs that are ordinarily incurred by the foreign tax payer in the conduct of its business and declaration of dividends to shareholders.</li></ol><div style="text-align: justify;"> </div><p style="text-align: justify;">In addition, the revised regulations now accept the standard forms of certificate of domicile or tax residence letter generally issued by foreign tax authorities, and no longer require foreign tax authorities to certify the customised forms published under the previous regulations.</p><div style="text-align: justify;"> </div><h3 style="text-align: justify;">Analysis</h3><div style="text-align: justify;"> </div><p style="text-align: justify;">The new regulations answer a number of questions on the application of the new tax rules, although they are not without questions themselves. However, the revised regulations are generally encouraging both for offshore equity holding structures, as well as the prospect of a well structured high-yield debt issuance by an offshore holding company or subsidiary, where a substantial portion of the issuance is used onshore.</p><div style="text-align: justify;"> </div><p style="text-align: justify;">One particular difficulty of interpretation arises from the application of the fifty percent (50%) threshold to the offshore company's total income, as opposed to its income derived from Indonesia. This suggests the possibility that a large offshore company with significant debt outstanding may not qualify for treaty benefits whether or not any portion of that debt has been passed on to Indonesia. It would seem more consistent to apply the fifty percent (50%) test to income derived from Indonesia only, although this is not an obvious interpretation under the new regulations.</p><div style="text-align: justify;"> </div><p style="text-align: justify;"><em><strong>Offshore Holding Companies</strong></em></p><div style="text-align: justify;"> </div><p style="text-align: justify;">The clarification that dividend distributions by the offshore company are exempted from the fifty percent (50%) requirement is particularly welcome for offshore holding companies, as is the clarification that offshore companies can obtain tax benefits notwithstanding that the Indonesian source income may be exempt from taxation under domestic tax rules. As a result, offshore holding companies incorporated in traditional jurisdictions such as Singapore will continue to be entitled to benefits under the Indonesia-Singapore treaty as long as they have an active business or operations which satisfies the substance test. This would reduce the effective tax burden to the ten percent (10%) withholding rate set out in the Indonesia-Singapore tax treaty, as Singapore exempts foreign sourced dividend income from domestic taxation.<sup>1</sup></p><div style="text-align: justify;"> </div><p style="text-align: justify;"><em><strong>High-Yield Issuances</strong></em></p><div style="text-align: justify;"> </div><p style="text-align: justify;">The new regulations expressly permit credits from withholding tax levied on interest income in Indonesia to reduce tax on that income to zero in the jurisdiction of the offshore company. This suggests the possibility of an efficient high-yield issuance structure if an Indonesian company has related operations in an appropriate jurisdiction. Jurisdictions such as Singapore and Hong Kong have sufficiently low corporate tax rates such that it may be possible to entirely offset domestic corporate tax on the interest income with tax credits from Indonesia. This would reduce the effective tax burden to the ten percent (10%) withholding rate set out in the relevant tax treaty. Alternatively a substantial Netherlands operating company may be entitled to the zero percent (0%) withholding rate under the Indonesia-Netherlands tax treaty, even if it utilises domestic tax elections to minimise the Netherlands tax burden.<sup>2</sup></p><div style="text-align: justify;"> </div><p style="text-align: justify;">This type of structure would require an offshore company with an active business and operations, sufficient equity capital to satisfy the fifty percent (50%) rule and generally involve an objective reason for raising the financing itself, such as use of a portion of the proceeds for its own working capital, capital expenditures or acquisitions.</p><div style="text-align: justify;"> </div><h3 style="text-align: justify;">Conclusion </h3><div style="text-align: justify;"> </div><p style="text-align: justify;">The revised regulations provide welcome clarity to the application of the beneficial ownership test, which significantly increases certainty for structuring international transactions involving Indonesian companies.</p><div style="text-align: justify;"> </div><p style="text-align: justify;"><strong>Footnotes:</strong></p><div style="text-align: justify;"> </div><p style="text-align: justify;"><small>1. Note that the new Indonesia-Hong Kong tax treaty may result in Hong Kong being an even more efficient jurisdiction as it provides for a withholding rate of 5% on dividend income, and Hong Kong does not impose domestic tax on dividend income. The Indonesia-Hong Kong tax treaty has been signed but has not yet entered into force pending ratification by both countries.</small></p><div style="text-align: justify;"> </div><p style="text-align: justify;"><small>2. As discussed in previous articles, it may be possible to utilise a fiscal unity election in the Netherlands to substantially reduce Netherlands domestic tax.</small></p><div style="text-align: justify;"><br /><span style="font-size:78%;"><span style="font-style: italic; color: rgb(0, 0, 153);">Source: http://www.mondaq.com/article.asp?articleid=101148</span></span><br /></div>taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-84155063167739356162011-11-15T17:28:00.003+07:002011-11-16T13:45:29.018+07:00Taxpayer and Taxpayer Identification Number<div style="text-align: justify;"><span style="font-weight: bold;">When Should I Registering as a Taxpayer?</span><br /><br />According to the Article 2 paragraph (1) General Provisions and Tax Procedures Law (Indonesian Tax Law No. 28 Year 2007) that every taxpayer who has met subjective and objective requirements as stipulated by tax laws shall be obliged to register at the office of the Directorate General of Taxes whose jurisdiction covers the residence or domicile of the Taxpayer and be provided with a Taxpayer Identification Number.<br /><br /><span style="font-weight: bold;">What is a Tax Identification Number?</span><br /><br />The Tax Identification Number (In Indonesian term is called Nomor Pokok Wajib Pajak or NPWP) is a number issued to Taxpayers by the tax office to identify taxpayers and to assist them in fulfilling their taxation rights and obligations.<br /><br /><span style="font-weight: bold;">What if Taxpayer does not want to register to get the Tax Identification Number?</span><br /><br />If the Taxpayer does not want to register, the Director General of Taxes may issue a Taxpayer Identification Number and or confirm a Taxable Person for VAT Purposes ex-officio in case a Taxpayer or a Taxable Person for VAT Purposes does not fulfill the obligations as referred to in article 2 paragraph (1) and (2) Indonesian Tax Law No. 28 Year 2007.<br />According to the Article 39 Paragraph (1) letter a Indonesian Tax Law No. 28 Year 2007 stipulated that whom soever deliberately fails to register for a Taxpayer Identification Number, or fails to register his business to be confirmed as a Taxable Person for Value Added Tax Purposes, which may cause losses to the revenues of the state, shall be penalized by imprisonment for a minimum of 6 (six) month or a maximum of 6 (six) years and a minimum fine equal to 2 (two) times the amount of unpaid or underpaid tax and a maximum fine equal to 4 (four) times the amount of unpaid or underpaid tax.<br /><br /><span style="font-weight: bold;">How to get an NPWP?</span><br /><br />Taxpayer shall be obligated to register at the tax office in the district in which the taxpayer reside by submitting the following documents:<br /><span style="font-weight: bold; font-style: italic;">a. For Expatriate:</span><br />-Fill the Registration form<br />-Copy of passport<br />-Copy of limited stay permit card (KITAS)<br />-Copy of work permit (for taxpayer who is an employee<br />-Copy of tax identification number of the employer (for taxpayer who is an employee)<br />-Power of attorney (if his/her registration process is done by another party)<br />-Copy of business permit (for taxpayer who is conducting business or an independent professional).<br /><br /><span style="font-weight: bold; font-style: italic;">b. For Indonesian Citizen</span><br />-Fill the Registration form<br />-Copy of identity card<br />-Power of attorney (if his/her registration process is done by another party)<br />-Certificate of place of business from the competent authority<br />-Copy of business permit (for taxpayer who is conducting business or an independent professional).<br /></div><br /><br /><span style="font-weight: bold;">Related Artikel:</span><br /><a href="http://taxlearning.blogspot.com/2008/07/tax-identification-number-or-npwp.html">TAX IDENTIFICATION NUMBER or NPWP - REGISTRATION</a>taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com1tag:blogger.com,1999:blog-4086966034140741339.post-43027311568503636752011-05-03T09:27:00.001+07:002012-10-24T08:51:38.173+07:00Transfer Pricing<div style="text-align: justify;">
<span style="font-weight: bold;">by: Tax Learning</span><br />
<br />
The Directorate General of Taxation (DGT) has published the regulation about transfer pricing for Indonesian Taxpayers. The Director General of Taxation Regulation Number PER-43/PJ/2010 dated September 6, 2010 about Application of Common Business Practice and Arm’s Length Principle in Transaction between Taxpayers and Parties who have a special Relationship, represents the first specific guidance to Indonesian taxpayers since the Income Tax Law amendment in 1983. So far the determination of transfer pricing is only determined only by the DGT. But now, by the PER-43/PJ/2010, Indonesian Taxpayers compulsory to prepare the transfer pricing documentation. PER-43/PJ/2010 are based on the Organization for Economic Cooperation and Development (OECD) Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (the OECD Guidelines).<br />
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<span style="font-weight: bold;">1. Scope of Regulation</span><br />
PER-43/PJ/2010 applies to transactions between related parties which have an impact on the reporting of income or expenses for corporate tax purposes, include:<br />
a. Sale, transfer, purchase or acquisition of tangible goods and/or intangible goods;<br />
b. Payment of rental fees, royalties, or other payments arising from the provision of or use of tangible or intangible property;<br />
c. Income received or costs incurred for provision of or utilization of services;<br />
d. Cost allocation; and<br />
e. Transfer or acquisition of property in the form of a financial instrument, as well as income or costs from the transfer or acquisition of the financial instrument.<br />
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<span style="font-weight: bold;">2. Implementation of the arm’s length principle</span><br />
Taxpayers that make the transactions between related parties should be implemented the arm’s length principle (ALP). ALP should be implemented by the following steps:<br />
a. Perform a comparability analysis and identify comparables;<br />
b. Determine the most appropriate Transfer Pricing Method;<br />
c. Apply the ALP to the tested transaction based on the result of the comparability analysis and the selected transfer pricing method;<br />
d. Document each step of the process in determining the arm’s length price or profit in consideration of the prevailing tax regulations.<br />
<br />
Taxpayers are not required to comply with these steps for transactions with related parties who earn income or incur expenses of less than IDR 10 million, but still required to comply to perform bookkeeping as the regulation in Article 28 Tax Law No. 28 Year 2007 as amended by Tax Law No. 16 Year 2009.<br />
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<span style="font-weight: bold;">a. Comparability Analysis</span><br />
<br />
In conducting proportionality analysis as referred to in point 2 letter a above, must consider the following matters:<br />
- transactions between the taxpayer and the entity has the Related Parties are considered comparable to transactions conducted between parties who do not have in terms of special Relationship:<br />
* there is no material difference or significant conditions that could affect the price or income of the comparable transactions; or<br />
* there are different conditions, but can be adjusted to eliminate the influence of a material or significant differences between these conditions on prices or profits;<br />
- If the Internal and External Comparative Data is available with the same level of proportionality, the taxpayer must use the Internal Comparative Data for the determination of Fair Price or Fair Profit.<br />
<br />
The comparability analysis outlined is based upon the five comparability factors contained in the OECD Guidelines, are as follows:<br />
a) Characteristics of property or services;<br />
b) Functional profile of parties involved;<br />
c) Contractual terms;<br />
d) Economic conditions; and<br />
e) Business strategies.<br />
<br />
Taxpayers required to document the steps, studies, and results of studies in conducting proportionality analysis and determination of comparison, the use of Comparative Data Internal and/or Comparative Data External and keep books, the basic records, or documents in accordance with applicable regulations.<br />
<br />
<span style="font-weight: bold;">b. Selection the Transfer Pricing Methods</span><br />
<br />
OECD apply five methods of pricing that endorsed by the DGT and formally recognized in the Indonesian Tax Law. Taxpayers are required to apply the methods to pricing are:<br />
a) Comparable Uncontrolled Price (CUP) method;<br />
b) Resale Price Method (RPM);<br />
c) Cost Plus Method (CPM);<br />
d) Profit Split Method (PSM); or<br />
e) Transactional Net Margin Method (TNMM).<br />
<br />
<span style="font-weight: bold;">c. Format of Transfer Pricing Documentation</span><br />
<br />
PER-43/PJ/2010 requires that a taxpayer must be present the transfer pricing documentation consist of a minimum:<br />
a) Overview of the company such as group structure, organization chart, shareholding structure, business operations, list of competitors and description of business environment;<br />
b) Price policy and/or and cost allocation policy;<br />
c) Comparability analysis (i.e. the five comparability factors);<br />
d) List of selected comparables; and<br />
e) Application of the selected method.<br />
<br />
As long as these minimum requirement, the specific format and contents of the transfer pricing documentation may be determined by the taxpayer.<br />
<br />
<span style="font-weight: bold;">d. Transfer Pricing Adjustments by the DGT</span><br />
<br />
In PER-43/PJ/2010 states that the DGT has the authority to re-determine the amount of related party income and deductible expenses in calculating the taxable income of a taxpayer. The DGT adjustments may be based on the taxpayer’s own transfer pricing method and documentation. If the taxpayer’s documentation is insufficient, the DGT will conduct its own analysis to re-determine the related party income and/or expense amounts.<br />
If there are evidences of a tax crime, then the DGT may perform an investigation as outlined in Article 44 Law No. 16 Year 2009 about tax administration law.<br />
<br />
<span style="font-weight: bold;">e. Correlative Adjustments</span><br />
<br />
The DGT has the authority to make correlative adjustments to a taxpayer’s income as a follow up to a primary transfer pricing adjustment made by the DGT or an overseas tax authority to the income of one of the taxpayer’s related parties. In this regulation does not provide detailed guidance on the process that taxpayers must follow to seek such a correlative adjustment.<br />
(c)taxlearning.blogspot.com<br />
<br />
This Regulation has been revised, related topic about the new regulation: <a href="http://taxlearning.blogspot.com/2012/10/tax-regulation-for-transfer-pricing.html"><b>read here</b></a> </div>
taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-66083240765365979792011-05-03T09:22:00.001+07:002011-05-03T09:26:48.412+07:00Medium Tax-Service Office (KPP) Jakarta Central targets 95% Taxpayer Compliance<div style="text-align: justify;">Jakarta, 21/04/2011 MoF (Fiscal) News – Medium Tax-Service Office (KPP) Jakarta Central targets 95% taxpayer compliance up to 95 percent of its annual revenue by 2011. This was conveyed by Head of Service Division Medium KPP Jakarta Central Iwan Hendrawan in his office on Thursday (04/21).<br /><br />Medium KPP Jakarta Central manages 1023 taxpayers, where the submission of the Tax Return (SPT) for Corporate which will expire on April 30, 2011. "There are 90 companies have returned SPT," said Iwan. The submission of corporate SPT seemed more complicated than personal. However, Iwan explained that it is because there is an audit of the financial management that needs to be managed properly. "Audit can be a delay or wait for the audit process," he explained. Usually, continued Iwan, the Corporate SPT will be submitted in the last minute.<br /><br />Each year, taxpayers in Medium KPP Jakarta Central have increased. "This year is 1023, while last year was 1009," explained Iwan. In past few years, tax compliance level is at 95 percent. During the first quarter, Medium KPP Jakarta Central has reached 25% of the target. Hopefully, by the end of April next, it can be achieved up to 100%. "We expect 100% at the end of April," hoped Iwan.<br /><br />According to Iwan, the employees at Medium KPP Jakarta Central strive to provide excellent service. "At the break time, we continue to serve, because we want to serve at any time," he explained. He affirmed that, amidst the input and criticism of community, the employees serve optimally.<br /><br /><span style="font-size:85%;"><span style="font-style: italic; color: rgb(0, 0, 153);">Source: www.depkeu.go.id</span></span></div>taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-63594879995730676642011-02-22T12:35:00.002+07:002011-02-22T12:53:46.242+07:00The Explanation of Directorate General of Customs and Excise Problem Hollywood Movies<div style="text-align: justify;">Jakarta - Hollywood threatened to decide to stop distributing their film production in Indonesia following a tax increase for foreign movies. However, the Directorate General of Customs and Excise said there was no increase in import duty import of foreign films. Here goes the explanation.<br /><br />Directorate General of Customs and Excise (DGCE) held a news conference at his office, Jalan Ahmad Yani, Rawamangun, East Jakarta, Monday (02/21/2011). Technical Director of Customs Directorate General of Customs Heri Kristiono said, had been the importer of foreign films in the country not enter the amount of royalties to the custom value.<br /><br />1. There are no new policies or regulations of foreign movies because of the additional royalties to the value is in conformity with the WTO Customs Valuation Agreement has been ratified by the Constitution No. 7 of 1994 and in-Adopt the Law No. 10 of 1995 amended by No. 17/2006 concerning Customs governing provisions of the Customs Value.<br /><br />2. There was no increase in import tariffs, imported films classified under HS Code 3706 with the imposition of tariffs of 10%, 10% import VAT and Income Tax section 22 imports 2.5%<br /><br />3. DGCE do a re-assessment based on the reference as follows:<br /><br />* Following the meeting of tariff harmonization of inter-departmental team on February 11, 2010 at the Center for State Revenue Policy BKF, led a meeting of the National Film Advisory Board (BP2N) with the Head of BKF, BKF meeting stated that the problem is the calculation of customs value for imported film is only based on price printed copy of the film, not including royalties and profit sharing rights.<br /><br />* Letter of the National Film Advisory Board (BP2) to the Customs General Recruited 282/BP2N/III/2010 number dated March 26, 2010 concerning the application for determination of customs value of imported films in accordance with fair value, arguing that:<br /> A. Taxes levied against the movie industry has been higher than imported films.<br /> B. Based on data from the website Box Office Mojo Film, the circulation of some foreign movies which paid the producer (52 titles) film for the period April 2009 till February 2010 has resulted in nearly $ 60 million or equivalent to Rp ± 570 billion (exchange rate = IDR 9500 / 1 USD.)<br /><br />* Letter of the Directorate General of Foreign Trade to the Chairman BP2N 121/DAGLU/4/2010 number dated April 12, 2010 which states that there are factors unique film containing intellectual property rights so that the determination of customs value not just use the standard flat metric Average per-movie (USD 0.43 / m).<br /><br />* Letter from BKF to BP2N number S-320/KF/2010 dated June 17, 2010 regarding the Fiscal Incentives for the National Film industry and Determination of Customs Value of Imported Films that essentially contains the determination of customs value of goods imports Film is the implementation of Law No. 17 of 2006 of Customs is not the policy.<br /><br />4. DGCE do a re-assessment in accordance with Law 10 of 1995 amended by No. 17/2006 on customs affairs, in which income producers of imported goods in accordance bill adheres to the principles of self assessment. Based on these principles DGCE authorized to conduct testing of the notification referred. In the Notice of Customs, the importer only inform the cost of printing copies of the film without entering a royalty to the customs value, so DGCE add it to the calculation of customs value as required.<br /><br />5. On February 18, 2011 made between DGCE meeting with MPA and Film Producers (among others: 21th Century, Walt Disney, Time Warner, Sony Pictures) to discuss problems of the customs value of imported films, the meeting asked the MPA DGCE and Producer intended to convey written things that concern them to the Director-General and until now has not received DGCE.<br /><br /><span style="font-size:85%;"><span style="font-style: italic; color: rgb(0, 0, 153);">Translate from: </span><a style="font-style: italic; color: rgb(0, 0, 153);" href="http://updatetaxnews.blogspot.com/2011/02/ini-dia-penjelasan-ditjen-bea-dan-cukai.html">Tax Learning - Tax News</a></span></div>taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com2tag:blogger.com,1999:blog-4086966034140741339.post-14438612957477511162011-02-21T08:40:00.001+07:002011-02-21T08:48:31.958+07:00Who's Propose Film Import Tax Lifted?<div style="text-align: justify;"><span style="font-weight: bold;">Jakarta</span> - Who proposed the foreign film tax is raised? Apparently, the proposal came from President Susilo Bambang Yudhoyono (SBY). The reason, SBY wants to promote the national film industry.<br /><br />"It's began when I talked with Mr. President the day before the cabinet meeting last year about the development of national film," said Minister of Culture and Tourism Jero Wacik.<br /><br />It said in a press conference on National Film Policy and Film Import Tax Issues in the Ministry of Culture and Tourism, Jl Medan Merdeka Barat, Central Jakarta, Sunday (20/02/2011).<br /><br />According to Wacik, SBY see the film industry began to show the rise in the last six years. This is evident from the large number of national films produced each year.<br /><br />"The President then read the complaint Hanung Bramantiyo who complained about the high cost of filmmaking in Indonesia," he explained.<br /><br />In writing young Sines, further Wacik, One cost to filmmakers is the value added tax of 10 percent that make the national movie industry lost to foreign movies.<br /><br />"Please set all, including taxation,"said Jero Wacik imitate speech the President at a Cabinet meeting late last year.<br /><br />Received orders from SBY, the Ministry of Culture and Tourism together with the Ministry of Finance set of rules designed to protect the local film industry.<br /><br />"In the draft, the government plans to release the film production tax and raise taxes for foreign movies, so that national films and imported films could compete," says Jero.<br /><br />The plan, the rules were originally to be issued in late March this year. "The Ministry of Finance was suddenly issued rules for foreign movies before the package is complete," he said.<br /><br />Based on data collected the data detikcom about the production and screening of films in theaters, local movie of 2007 amounted to 54 titles and 205 titles of foreign films, in 2008 amounted to 91 local film titles and 144 titles of foreign films, in 2009 there were 83 local film titles and 156 titles foreign films, and in 2010 there were 70 local film titles and 249 titles of foreign films.<br /><br /><span style="font-size:85%;"><span style="font-style: italic;">Translate from: </span><a style="font-style: italic;" href="http://movie.detikhot.com/read/2011/02/20/234333/1574680/229/siapa-yang-mengusulkan-pajak-film-impor-ditinggikan">detikcom</a></span></div>taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-64988624588835266252011-02-21T08:36:00.001+07:002011-02-21T08:38:56.723+07:00Tax for Imported & Local Movies are still being Evaluated<p style="text-align: justify;"><strong>Metrotvnews.com, Jakarta: </strong>The Minister of Culture and Tourism, Jero Wacik, held a press conference due to the ruckus caused by the new customs for imported and local movies. The event was also attended by the country’s foremost figures in the movie business, such as Deddy Mizwar, Tio Pakusadewo, and Slamet Raharjo.</p><div style="text-align: justify;"> </div><p style="text-align: justify;">The Minister of Culture and Tourism, in his press conference in Jakarta (20/02/2011) said that the customs for imported and local movies are still in discussion and evaluation.</p><div style="text-align: justify;"> </div><p style="text-align: justify;">They planned to make the tax for local movie production be reduced to zero percent. The same thing goes for imported goods used in the production of local movies. It was agreed before, but there’s still no final word on it.</p><div style="text-align: justify;"> </div><p style="text-align: justify;">To this moment, the Ministry of Culture and Tourism is still discussing the appropriate tax for imported movies. Jero Wacik asked the people to remain calm because his side of the system don’t want to eliminate imported movies and its importer.</p><div style="text-align: justify;"> </div><p style="text-align: justify;">According to Jero Wacik, the Ministry of Culture and Tourism, the Minister of Monetary, the Minister of Economy, the Directorate General of Taxes, as well as the Directorate General of Customs and Excise will conduct a meeting. The final decision will be given at early March.</p><div style="text-align: justify;"> </div><p style="text-align: justify;">Meanwhile, concerning the circulated letter of the Directorate General of Taxes, released on January 10<sup>th</sup>, 2011, Jero Wacik will make an evaluation. The letter was indeed circulated, but there was no previous agreement on it</p><div style="text-align: justify;"> </div><p style="text-align: justify;">The Minister of Culture and Tourism stressed that that the circulated letter didn’t mention anything about the sum of the tax. It only notified the importers to pay the tax according to the rule.</p><p style="text-align: justify;"><span style="font-size:85%;"><span style="font-style: italic;">Tranlate from: </span><a style="font-style: italic;" href="http://www.metrotvnews.com/read/newsvideo/2011/02/20/122844/Pajak-Film-Impor-dan-Lokal-Masih-Digodok">Metrotvnews.com</a></span><br /></p>taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-46165529852328617872011-01-25T08:49:00.000+07:002011-01-25T08:50:17.547+07:00Five More Tax Officials Discharged over Gayus Case<p style="text-align: justify;"><strong>JAKARTA, KOMPAS.com </strong>- Finance Minister Agus Martowardojo said he had removed five officials from their posts over indications of involvement in the corruption case of convicted former tax official Gayus Tambunan.</p><p style="text-align: justify;"> "Last Friday we removed from their posts five third- echelon officials in the finance ministry suspected of involvement in the Gayus case," he said after attending a limited coordination meeting on legal issues at the office of the vice president here on Monday.</p><p style="text-align: justify;"> Agus said the officials were believed to be involved in the case and had been immediately removed from their posts and examined by the ministry’s inspectorate general. He said the officials had been given administrative sanctions since Friday. </p><p style="text-align: justify;"> "They are an addition to the number of tax officials who were discharged in the period March-June 2010 when the Gayus case first broke," he said.</p><p style="text-align: justify;"> Asked if former director general of taxation Mochamad Tjiptardjo was one of them, Agus said he was not. </p><p style="text-align: justify;"> "The director general was not one of them. He is one of the first-echelon officials subject to our reform program," he said.</p><p style="text-align: justify;"> He said there had indeed been replacements of first-echelon officials over the weekend including Mochamad Tjiptardjo by Fuad Rahmany.</p><p style="text-align: justify;"> "So we will give time to the new director general to conduct consolidation so that he can make plans and programs to be carried out," he said.</p><p style="text-align: justify;"><span style="font-size:85%;"><span style="font-style: italic; color: rgb(0, 0, 153);">Source: kompas.com</span></span><br /></p>taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-74668462861094369022011-01-14T08:38:00.002+07:002011-01-14T08:47:25.818+07:00Tax Obligation for Expatriate<span style="font-weight: bold;">Legal Basis:</span><br /><ol style="text-align: justify;"><li>Law Number 16 Year 2009 The Fourth Amandement to Law Number 6 Year 1983 (General Provisions and Taxation Procedures Law).</li><li>Law Number 36 Year 2008 The Fourth Amandement to Law Number 36 Year 2008 (Income Tax Law).</li><li>Director General of Taxation Regulation Number PER-9/PJ/2008 as amended by Director General of Taxation Regulation Number PER-35/PJ/2009.</li></ol><br /><span style="font-weight: bold;">The Rules:</span><br /><div style="text-align: justify;"><ol><li>According to provisions of Article 2 paragraf (3) letter a Income Tax Law: individual who resides in Indonesia, an individual who has been present in Indonesia for more than 183 days within any 12 months period, or an individual who has been residing in Indonesia within a particular taxable year and intends to reside in Indonesia.</li><li>According to provisions of Article 2 paragraph (1) General Prosedures and Provision Tax: Any taxpayer fulfilling subjective and objective requirements in accordance with provisions of taxation legislation shall register with the office of the Directorate General of Taxation whose jurisdiction covers the residence or domicile of the taxpayer and accordingly, he/she is given a taxpayer code number (TIN (Tax Identification Number)/NPWP).<br />In the elucidation of this paragraph said that: The subjective requirements are requirements in accordance with the provisions on tax subjects in the 1984 Income Tax Law and its amendments. This means that we are referring to the provisions of Article 2 paragraph (3) letter a the Income Tax Law.</li><li>According to provisions of Article 3 paragraph (1) General Prosedures and Provision Tax: Any taxpayer shall fill a tax return properly, completely and clearly in Indonesia language by using Latin letters, Arabic numbers, the rupiah currency, and sign and submit it to the office of the Directorate General of Taxation where the taxpayer is registered or validated or other places stipulated by the Director General of Taxation.</li><li>According to the provisions of Article 3 PER-9/PJ/2008 stated that: The place of registration and or place of business reporting to be confirmed as Taxable Entrepreneurs for new taxpayers and taxpayers other than those referred to in Article 1 number 1 is the tax office whose jurisdiction covers residence or domicile taxpayers.</li></ol><span style="font-weight: bold;">So tax treatments for Expatriates is:</span><br /><ol><li>The Expatriates have the intention to stay in Indonesia for more than 183 days within 12 months. It can be seen from the plan to be in Indonesia for 6 months and can also be seen from the Permit. Thus, under the provisions of Article 2 paragraph (3) General Provisions and Taxation Procedures Law, The expatriates are obliged to register to get TIN.</li><li>If the Tax Payer is already can be categorized as Resident Taxpayer pursuant to Article 2 paragraph (3) General Provisions and Taxation Procedures Law, then to the expatriates, the company as an employer have to cut the income tax law of Article 21 of the income is paid to the expatriates (the calculation is in accordance with the provisions of Director General of Taxation Regulation PER-31/PJ/2009 as amended by PER-57/PJ/2009).</li><li>If the expatriate already have a TIN, then at the end of the year, this Expatriates must fulfill the obligation to report annual tax return of Personal Income Tax.</li><li>In its Annual report on the tax return, these expatriates have to report all income received in Indonesia and from abroad, while the tax credits that have been withheld or paid in Foreign Affairs on the reporting of income can be credited in the annual tax returns by using crediting method according to the provisions of Article 24 of the Income Tax Act.</li><li>If the future expatriates will leave Indonesia forever, he or she can submit a request letter to revoke his/her TIN (the process of deregistration).</li></ol></div>taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-85408062246389229252010-12-03T15:59:00.001+07:002010-12-03T16:02:17.383+07:00Indonesia Studying Tax Incentives for Islamic Finance<p style="text-align: justify;" class="indent"> Oct. 20, 2010 (Bloomberg) -- Indonesia, the world’s most populous Muslim nation, is studying ways to make tax laws more conducive to developing Islamic finance, Mulya Siregar, director of Shariah banking at the central bank, said in Jakarta.</p><div style="text-align: justify;"> </div><p style="text-align: justify;" class="indent"> “Experience in countries which have successfully developed Shariah banking shows that tax incentives are very helpful in expanding the industry,” he told reporters. The study may be completed by the end of this year, said Siregar, declining to provide more details.</p><div style="text-align: justify;"> </div><p style="text-align: justify;" class="indent"> Indonesia is stepping up measures to catch up with Malaysia, the biggest market for sukuk, or debt that pays asset returns to comply with the religion’s ban on interest. Shariah-compliant assets held by financial institutions rose 43 percent to 85.9 trillion rupiah ($9.6 billion) at the end of September, from a year earlier, Siregar said. The government estimates the figure will rise to 97 trillion rupiah by year-end, he said.</p><div style="text-align: justify;"> </div><p style="text-align: justify;" class="indent"> Islamic banking assets in Indonesia totaled 75 trillion rupiah at the end of last year, about 2.9 percent of the total, Siregar said in August. That compares with Malaysia’s 337.6 billion ringgit ($109 billion), accounting for 20 percent of the country’s total, according to Bank Negara Malaysia’s website.</p><div style="text-align: justify;"> </div><p style="text-align: justify;" class="center"> Infant Industry</p><div style="text-align: justify;"> </div><p style="text-align: justify;" class="indent"> Indonesia needs to do more to bolster investment in Islamic banking, said Ventje Rahardjo, president director of Jakarta- based PT Bank Syariah BRI, a unit of Indonesia’s second-largest lender by assets.</p><div style="text-align: justify;"> </div><p style="text-align: justify;" class="indent"> “We have been asked by the government to share our views” on this issue, Rahardjo told reporters. “We are discussing what types of things might help Shariah banks to compete with conventional banks because our Islamic finance industry is still in its infancy.”</p><div style="text-align: justify;"> </div><p style="text-align: justify;" class="indent"> Malaysia’s Prime Minister Najib Razak said on Oct. 15 the country plans to cut taxes on certain types of Shariah-compliant transactions to promote innovation in the industry that has total assets of $1 trillion. The government also announced plans last week to start selling Islamic bonds to individual investors</p><div style="text-align: justify;"> </div><p style="text-align: justify;" class="indent"> In the past year, Malaysia has also issued permits to global investors including Aberdeen Asset Management Plc and Franklin Templeton Investments to start Islamic fund management businesses.</p><p style="text-align: justify;" class="indent"><span style="font-size:85%;"><span style="font-style: italic; color: rgb(0, 0, 153);">Source: businessweek.com</span></span><br /></p>taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-34462971425295885852010-11-16T11:45:00.000+07:002010-11-16T11:48:45.866+07:00Tax office gets green light to probe Bumi Resources case<div align="justify">The Directorate General of Taxation will go ahead with its investigation of alleged tax irregularities involving PT Bumi Resources after the Tax Court on Wednesday rejected a complaint from the company’s finance director on the legality of the investigation.<br /><br />Judge Hari Utomo, who led the court proceedings, said that the directorate general had not violated any rules in investigating the case as had been alleged by Eddie J. Soebari, the energy company’s finance director.<br /><br />“He filed a lawsuit against us by saying that we had carried out the investigation without providing any notification or even a letter of investigation order,” Head of Jakarta Tax Office Riza Noor Karim said.<br /><br />The investigation would be carried out on the grounds that it could lead to recovery of possibly unpaid taxes that might be worth millions of dollars, Riza said.<br /><br />The case first emerged when the directorate announced last year it had been investigating possible tax evasion involving three mining companies, PT Bumi Resources, PT Arutmin Indonesia and PT Kaltim Prima Coal (KPC). All three companies have ties with Golkar Party chairman Aburizal Bakrie.<br /><br />The combined value of the possibly unpaid taxes is estimated to be worth Rp 2.1 trillion, the tax office said. In March 2009, KPC filed a complaint with the Jakarta tax tribunal after it received a letter from the tax office saying the company was under investigation. KPC said the investigation was not complying with procedures.<br /><br />The tax tribunal ruled in favor of KPC and ordered the tax office to stop the investigation. The justices ruled that the tax office was no longer allowed to investigate the alleged withholding of tax by KPC.<br /><br />Objection and appeal director at the taxation directorate general Catur Rini Widosari said that the potential financial loss tied to Bumi could be bigger than initially expected, given the increase in the evidence available.<br /><br />“Yet, we cannot mention the potential loss. The figures may vary. So, it would be better for us to<br />wait until the investigation is completed,” she said, adding that the taxation directorate general had no deadline to follow in carrying out the investigation.<br /><br />Indonesia Corruption Watch (ICW) in a report issued earlier this year claimed that Bumi had failed to pay taxes and royalties worth up to $620 million.<br /><br />Head of tax billing and investigation division at the taxation directorate general Erizal said that during the investigation, his institution was still cooperating with the national police. “But the authority to investigate the alleged tax evasion remains with us,” he said.<br /><br />Eddie’s lawyer, Rana Sanjaya, refused to make comments on the verdict.<br /><br />“We will discuss it. We may appeal, but I don’t want to give you any comments,” he said.<br /><br /><em><span style="font-size:85%;color:#000099;">Source: thejakartapost.com</span></em></div>taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-24755899273896326932010-11-16T11:40:00.000+07:002010-11-16T11:44:17.236+07:00Indonesia raises Rp 485t in tax revenue<div align="justify">The Directorate General of Taxation announced that income revenue as of Oct 31 reached Rp 485.1 trillion (US$54.8 billion), a 13 percent increase from the same period last year.<br /><br />“The taxation revenue has attained 73.3 percent of the target in the 2010 revised state budget,” Directorate General of Taxation M Iqbal Alamsyah said in a statement published Thursday.<br /><br />He said the government targeted to reap a total of Rp 661.5 trillion from taxes this year.<br /><br />He said the government raised Rp 442.9 trillion from non-oil-and-gas income tax. “Non- oil and-gas- income tax has grown 14 percent as of October. It just netted Rp 385.8 trillion in the same period of last year,” Iqbal said.<br /><br />Based on the recent data, non-oil-and-gas income tax comprised Rp 240.6 trillion from value added tax, Rp 171.5 trillion from luxury tax, Rp 27.9 trillion from land and building acquisition tax and urban and rural land and building tax and Rp 2.8 trillion from other taxes.<br /><br /><em><span style="font-size:85%;color:#000099;">Source: thejakartapost.com</span></em></div>taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-22125032075726785702010-11-16T11:35:00.000+07:002010-11-16T11:39:28.899+07:00Tax office promises to listen to taxpayers’ complaints<div align="justify">The Directorate General of Taxation is encouraging taxpayers to file complaints with the office if they feel that officials may have miscalculated their tax payments.<br /><br />The head of the number two sub-directorate of appeals and lawsuits at the tax office, Jon Suryayuda<br />Soedarso, said Friday that filing objections was the right of every taxpayer as stipulated in the 2007 Taxation Law.<br /><br />He promised to listen to complaints and settle cases amicably.<br /><br />“If a taxpayer has a different opinion about a tax calculation, they may file objections with the tax office,” he said, adding that the office would follow up the objections in accordance to prevailing regulations.<br /><br />The tax office claims the number of objections filed had steadily declined in the past three years from 20,000 in 2008 and 13,000 in 2009 to only 6,500 in the first nine months of this year.<br /><br />After reviewing the complaints, Jon added, the tax office would recalculate the tax. If taxpayers were still unhappy with the decision, they could file an appeal with the tax court.<br /><br />He said taxpayers could object not only about the amount of their tax, but also about auditing<br />procedures.<br /><br />“If taxpayers feel our auditing procedures don’t comply with the prevailing law, they could also file objections,” he emphasized.<br /><br />The tax office claims the number of appeals filed by taxpayers with the tax court also decreased in the past three years from 3,000 in 2008 and 2,900 last year to 2,700 in the first nine months of this year.<br /><br />“In 2008, the court settled 2350 cases, in 2009, 2800 cases and 1953 cases in the first nine months of this year. The court upheld our original tax calculations in only 40 percent of the cases,” Jon said, adding that his office lost most of the cases due to improper tax calculations and auditing procedures, not due to illicit deals between taxpayers and tax officers as many critics have claimed.<br /><br />The head of the number one sub-directorate of appeals and lawsuits, Max Darmawan, said that it was almost impossible for illicit deals to manipulate the decision of the tax court to take place because the tax office had tightened its supervision of all appeal officials.<br /><br />“After the tax evasion case involving former official Gayus Tambunan broke to the public, we evaluated our system and fixed loopholes,” he said. Gayus was an appeals official who handled appeals from several large Indonesian companies.<br /><br />To stop incidents of graft, Max said, the tax office limited contact between taxpayers and appeals officials; the two could only meet in plenary sessions.<br /><br />However, he admitted that the office could not monitor officials outside their work hours.<br /><br />Jon said that if taxpayers still disagreed with the decision of the tax court, another legal avenue for them to defend their rights was to file a case review request with the Supreme Court.<br /><br /><em><span style="font-size:85%;color:#000099;">Source: thejakartapost.com</span></em></div>taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-19658963366684074432010-10-04T09:22:00.002+07:002010-10-04T09:31:56.954+07:0030 Retailers serve tax refund facility starting today<div align="justify">The Directorate General of Taxes add 22 retail stores that participate in the provision of refund of VAT (tax refund) to foreign tourists.<br /><br />The provision is contained in Decree No. DGT. 34/PJ/2010 about Appointment of Retail Stores, signed on 6 September 2010. This Decree are effective today.<br /><br />Business Process Transformation Director Directorate General of Taxation, Robert Pakpahan, said the addition of retail stores is done considering the positive response from the tourists and retail shops on the implementation of tax refund policy that became effective from 1 April.<br /><br />"The VAT refund facility for foreign tourists has received positive response from the tourists and retail stores," he said as quoted by the Business release received today.<br /><br />On 1 April 2010, the Directorate General of Taxation has appointed eight retail stores participating in the program. With the addition of retail stores participating in the provision of tax refund from today, the number of stores grew to 30 stores.<br /><br />Retail stores participating in this program are required to put the logo 'VAT Refund FOR TOURISTS'. Until now, only two international airports of Soekarno Hatta Airport in Jakarta and Denpasar, Bali's Ngurah Rai airport serving this VAT refund.<br /><br />Retail stores in Jakarta who has been involved in providing facilities tax refund, PT Pasaraya Blok M, Sarinah Thamrin, Metro Pondok Indah Mall, Metro Plaza Senayan, Batik Keris Citraland , Batik Keris Menteng, Batik Keris Pondok Indah Mall 2, and Batik Keris Karawaci Supermal .<br /><br />In addition, Batik Keris Pacific Place, Keris Dept. Store Menteng, Keris Dept. Store Mal Puri Indah, Jean Paul Gaultier Plaza Indonesia, Plaza Indonesia Loubountin Chistian, Club Monaco Plaza Indonesia, Sogo Plaza Senayan, Sogo Kelapa Gading, Sogo Pondok Indah Mall , Sogo Emporium Pluit , Seibu Grand Indonesia, and Indonesian Square Grand Indonesia.<br /></div><div align="justify">Meanwhile, retail stores are located in Batik Keris Bali Discovery Shopping Mall, Batik Keris Ngurah Rai Airport, Sogo Bali Collection, Sogo Discovery Shopping Mall, the Square Indonesia Nusa Dua, UC Silver Batubulan Gianyar, Mayang Bali Kuta Square, the South Atlas Sea Pearl Shops Sanur, Dewis Sukawati Gianyar, and Windu Sari Batubulan Herzliya. </div><div align="justify"> </div><div align="justify"><em><span style="font-size:85%;color:#000099;">Translate from: </span></em><a href="http://updatetaxnews.blogspot.com/2010/10/30-peritel-layani-fasilitas-tax-refund.html"><em><span style="font-size:85%;color:#000099;">http://updatetaxnews.blogspot.com/2010/10/30-peritel-layani-fasilitas-tax-refund.html</span></em></a></div>taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-20399174916602023642010-08-19T14:58:00.001+07:002010-08-19T14:58:58.949+07:00Tax revenue target unrealistic: ObserversThe government’s goal to increase the tax revenue by 14.5 percent, or Rp 106.26 trillion, next year to Rp 839.5 trillion (US$93.18 billion) will be tough without extra efforts, experts said.<br /><br />The 2011 draft state budget delivered by President Susilo Bambang Yudhoyono in the annual state of the nation address at the House of Representatives and Regional Representatives Council on Monday, projects total tax revenues of Rp 839.5 trillion, or 77 percent from the overall state revenue.<br /><br />“The target is only possible if the government focuses on intensification of tax income from several specific sectors as well as the extensification of individual taxes,” University of Indonesia’s tax observer Darussalam told The Jakarta Post on Wednesday.<br /><br />Darussalam said tax income from oil and gas, mining, agricultural and forestry sectors needed to be pushed in order to meet the target, as the sectors were under-enforced potential tax contributors.<br /><br />“The government also needs to increase the number of individual tax payers. Tax income in developed countries is dominated by individual taxes. But here, corporate taxes are a lot more than individual ones,” he said.<br /><br />Chamber of Commerce vice chairman of Trade, Distribution and Logistics Division, Benny Soetrisno, said the tax revenue target could be achieved only if the government increased the tax coverage on business sectors. He said many companies, even those who have business permits, did not pay tax. “Many businesses did not have tax identification numbers although they had acquired their business licenses. That’s where the government should focus on,” he said.<br /><br />Experts are also concerned about weak 2010 tax revenues. Former finance minister Sri Mulyani Indrawati in March revised the government’s target for this year’s tax revenue to Rp 733.24 trillion, Rp 9.5 trillion lower than the previous target at Rp 742.74 trillion in the original 2010 state budget.<br /><br />The revised figure in the revised 2010 state budget is 75.22 percent of the estimated total state revenue of Rp 974.82 trillion.<br /><br />Sri Mulyani said the downward revision was due to a lower tax base resulting from a below-target revenue in 2009.<br /><br />Taxation revenue comprises of the funds collected by the Finance Ministry’s Directorate General of Taxation and Directorate General of Customs and Excise.<br /><br />In his address, Yudhoyono also mentioned a target to increase the tax-to-GDP ratio by 0.1 percent in 2011.<br /><br />“The tax ratio will increase from 11.9 percent in the 2010 state budget to 12 percent in 2011,” Yudhoyono said.<br /><br />Finance Minister Agus Martowardojo quickly responded to the target, saying that the government must work hard to achieve the target.<br /><br />“The GDP continues to grow. In early 2010, our GDP was about Rp 5,000 trillion. Up to June, it grew to about Rp 6,000 trillion. Therefore the percentage [tax ratio] automatically slides.<br /><br />“So 12 percent will be a very hard work,” he said. (est)<br /><br />Source: TheJakartaPost.comtaxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-46464750754531278452010-08-19T14:54:00.000+07:002010-08-19T14:55:06.202+07:00Big tax payers have Rp 1.2 trillion in arrears<div align="justify">Big tax payers have not paid Rp 1.2 trillion (US$133 million) in financial obligations to the state as of July this year.<br /><br />Head of the Large Tax Office (LTO) Mekar Satria Utama identified the tax payers as companies in the mining, banking, telecommunication, processing industry, heavy equipment trade and automotive distribution sectors.<br /><br />The mining industry is the largest tax payer, contributing 40 percent to state tax revenue, followed by the banking sector at 23 percent.<br /><br />“We originally set a target of examining and cashing in Rp 953 billion of tax arrears, but we have reached 128 percent of the target and expect to exceed 200 percent of the mark by the end of the year,” Mekar said as quoted by Antara on Wednesday.<br /><br />He said the LTO had met one half of the tax revenue target of Rp 661 trillion set in the 2010 state budget.<br /><br />There are 199 large tax offices among about 700 tax offices across the country.<br /><br /><em>Source: TheJakartaPost.com</em></div>taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-13907980973685838862010-08-19T14:51:00.001+07:002010-08-19T14:53:00.428+07:00Dozens of tax agents ready to chase 'naughty businessmen'<div align="justify">The country's tax office has trained dozens of tax agents to chase 'naughty businessmen' who park their fund overseas.<br /><br />"We have trained 15 tax officials," tax director general Mochamad Tjiptardjo said as quoted by tempointeraktif.com on Wednesday.<br /><br />The Tax Office would assign those officials to tax haven countries like Singapore, Hong Kong as they offered taxes to businessmen lower than those at home.<br /><br />"We hope we can realize our plan next year," Tjiptardjo said.<br /></div><div align="justify"><em><span style="font-size:85%;color:#000099;">Source: TheJakartaPost.com</span></em></div>taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0tag:blogger.com,1999:blog-4086966034140741339.post-64746390257865162962010-08-19T14:45:00.000+07:002010-08-19T14:46:15.389+07:00President Says Indonesia to Boost 2011 Infrastructure Spending<div align="justify"><strong>Jakarta</strong>. Indonesia may increase capital spending by 28 percent next year as the government aims to build more bridges and roads to boost growth in Southeast Asia’s biggest economy, President Susilo Bambang Yudhoyono said.<br /><br />The economy may expand 6.3 percent next year from 6 percent this year, Yudhoyono told the House of Representatives in Jakarta. Capital spending in the 2011 state budget may rise by Rp 26.6 trillion rupiah ($2.96 billion) to Rp 121.7 trillion next year, he said in his speech.<br /><br />“The increase is the highest compared with those of other expenditures,” Yudhoyono said. “This step, along with steps to improve the budget absorption, will hopefully overcome the various problems and obstacles that have hampered infrastructure development.”<br /><br />Yudhoyono has pledged to double spending on infrastructure to $140 billion during his second and final five-year term to deliver average growth of 6.6 percent. During his first term, 125 kilometers of toll roads were built, compared with China’s 4,719 kilometers of toll roads last year alone.<br /><br />“As long as our infrastructure remains underdeveloped the economy cannot expand beyond 6.5 percent without the risk of overheating,” said David E. Sumual, an economist at PT Bank Central Asia. “The government doesn’t have much of a choice but to increase its deficit spending.”<br /><br />New roads, seaports, and bridges may improve distribution of goods in the world’s biggest archipelago. Indonesia is the world’s largest exporter of power-station coal and the second- biggest exporter of palm oil. Better access may reduce the cost of distribution, helping keep inflation and interest rates low.<br /><br />A higher infrastructure budget will help build, among other things, 14 new airports, 85.06 kilometers of railways and improve the capacity of 2,613 kilometers of roads, Yudhoyono said.<br /><br />The government plans to reduce the state budget deficit next year to 1.7 percent of gross domestic product from 2.1 percent of GDP assumed in the 2010 budget, Yudhoyono said.<br /><br />Finance Minister Agus Martowardojo said on July 26 the budget deficit may be 1.5 percent of GDP this year.<br /><br />A higher infrastructure budget will help build among other things 14 new airports, 85.06 kilometers of railways and improve the capacity of 2,613 kilometers of roads, Yudhoyono said.<br /><br />The 2011 state budget draft assumes an inflation rate of 5.3 percent, Yudhoyono said. That compares with a central bank forecast of 4 percent to 6 percent this year. Other assumptions in next year’s budget draft include an oil production rate of 970,000 barrels a day and an average crude oil price of $80 a barrel.<br /><br />Tax revenue may rise 13 percent to 839.5 trillion rupiah next year, Yudhoyono said. The government also plans to increase the salaries of civil servants, the military and the police by 10 percent next year, he said. It plans to cut subsidy spending by 16.5 trillion rupiah to 184.8 trillion rupiah, he said.<br /><br /><br /><em><span style="font-size:85%;color:#000099;">Bloomberg</span></em></div>taxlearninghttp://www.blogger.com/profile/07771242049283094782noreply@blogger.com0