TAX UPDATE. August 2015 ADDITIONAL ARTICLE 23 INCOME TAX OBJECT

Transcription

1 TAX UPDATE August 2015 Inside this issue: Additional Article 23 Income Ta Object Regulation of New Non- Taable Income Transition ADDITIONAL ARTICLE 23 INCOME TAX OBJECT The Goernment has epanded the Article 23 Income Ta Object as regulated in the Minister of Finance Regulation No. 141/PMK.03/2015 regarding the Amendment to the Minister of Finance Regulation No. 244/ PMK.03/2008 regarding Other Types of Serices as Referred to in Article 23 Paragraph 1 letter C of Income Ta Law that is Subject to Article 23 Income Ta. The new regulation stipulates as follows: Do You Know 5-6 Contact Us Jakarta Office: Menara Imperium, 27th & 29th Floor Jl. HR. Rasuna Said Ka. 1 Jakarta Ph F contact@pbtaand.com Surabaya Office: Graha Bukopin, 9th Floor Jl. Panglima Sudirman Surabaya Ph F surabaya@pbtaand.com a. Confirming that the definition of gross amount does not include VAT, which is used as the basis of Income Ta collection at a rate of 2%, such as catering serice fee, or other than catering serice, such as serice fee to proider of goods procurement serice, serice proider fee as a replacement of fee that has been paid by the serice proider to a third party, etc.; b. Confirming that income ta shall not be collected in the eent that the other serices has been subject to final income ta; c. Specifying more other types of serices as referred to in Article 23 letter C of Income Ta Law as follows: see tables

2 TAX UPDATE Page 2 Additional Article 23 Income Ta Object continued No Other Types of Serices 244/PMK.03/2008 Effectie since 1 Jan August /PMK.03/2015 Effectie since 25 August Appraisal serice 2 Actuary serice 3 Accounting, bookkeeping, attestation of financial statements serices 4 Legal serice 5 Architecture serice 6 Town planning and landscape architecture serices 7 Design serice 8 Drilling serice in oil and gas mining, ecept the serice performed by permanent establishments 9 Supporting serices in : geothermal 10 oil & gas mining Mining serices and its supporting serices for sectors other than: Geothermal Oil & gas and mining 11 Supporting serices in aiation and airport 12 Logging serice 13 Waste treatment serice 14 Outsourcing serice 15 Intermediary and/or agency serices 16 Serice in commercial papers trading, ecept the serice performed by stock echange, KSEI, and KPEI 17 Custodian/saing/deposit serices, ecept the serice performed by KSEI 18 Dubbing serice 19 Film miing serice 20 Production serice of film, adertisement, poster, photo, slide, clichés, banner, pamphlet, billboards and folders for promotional purposes 21 Serices related to computer software, including maintenance and repair V Serices related to hardware or computer system, including handling, maintenance and repair X 22 Website design and/or maintenance serice 23 Internet serice, including connection line Storage, processing, and/or distribution of data, information, and/or program serices Installation serices of machinery, equipment, electricity, telephone, water, gas, AC and/or cable TV, and/or building other than the serice performed by a tapayer whose scope of work related to construction and who has a license and/or certificate as a construction entrepreneur read more...

3 TAX UPDATE Page 3 Additional Article 23 Income Ta Object continued No Other Types of Serices 244/PMK.03/2008 Effectie since 1 Jan August /PMK.03/2015 Effectie since 25 August Maintenance/repair serices of machinery, equipment, electricity, telephone, water, gas, AC, cable TV, and/or building, other than the serice performed by a tapayer whose scope of work related to construction and who has a license and/or certificate as a construction entrepreneur Maintenance/repair/handling serice for transportation/ ehicles Vehicle maintenance and/or land, sea and air transportation serices 27 Sub contract serice 28 Inestigation and security serices 29 Eent organizer serice 30 Space and/or time proision serices in mass media, outdoor media or other media for information announcement purposes Adertising serice 31 Pest control serice 32 Cleaning serice 33 Septic tank cleaning serice 34 Pool maintenance serices 35 Catering serice 36 Freight forwarding serice 37 Logistics serice 38 Document handling serices 39 Packing serice 40 Loading and unloading serice 41 Laboratory and/or testing serices, ecept the serice performed by education institutions for academic research purpose 42 Parking management serices 43 Cone penetration serice 44 Land preparation and/or management serices 45 Plant seeding and/or seed plantation serices 46 Plant maintenance serices 47 Haresting serice 48 Agricultural, horticulture, fisheries, liestock and/or forestry products processing serice 49 Decoration serice 50 Printing or publishing serice 51 Translation serice read more...

4 TAX UPDATE Page 4 Additional Article 23 Income Ta Object continued No 52 Other Types of Serices Freight forwarding or epedition serice, ecept the serice performed regulated in Article 15 of Income Ta Law Note: * New Article 23 Income Ta Object * Eliminated Article 23 Income Ta Object 244/PMK.03/2008 Effectie since 1 Jan August /PMK.03/2015 Effectie since 25 August Port serice 54 Transportation through pipeline serice 55 Child care management serice 56 Training and/or course serice 57 Money deliery and loading into ATM serice 58 Certification serice 59 Surey serices 60 Tester serice 61 Serices other than serices mentioned aboe which payment is charged to the State or Local Reenue and Ependiture Budget This proision shall come into effect starting from August 25, For more details, please read the aboe Minister of Finance Regulation in PB Taand s website. (end) REGULATION OF NEW NON-TAXABLE INCOME TRANSITION Pursuant to the recent amount of non taable income as referred to in PMK Number 122/PMK.010/2015, the Director General of Taes issues a transition technical guidance in the Article 27 of Director General of Taes No. PER 32/PJ/2015. Thus, the preailing calculation of Article 21 Income Ta for Fiscal Year 2015 is as follows: a. The Article 21 Income Ta and report of Periodic Article 21 Income Ta Return for the Fiscal Period of July until December 2015 shall be calculated using the Non Taable Income as referred to in Minister of Finance Regulation Number 122/PMK.010/2015; b. For Article 21 Income Ta for Fiscal Period of January until June 2015 which has been calculated, deposited, and reported using the Non Taable Income based on Minister of Finance Regulation Number 162/PMK.011/2012, the Periodic Article 21 Income Ta Return shall be reised. Any oerpayment shall be compensated starting from Fiscal Period of July 2015 until December 2015; and c. Calculation of Article 21 Income Ta in the reision of Periodic Article 21 Income Ta Return for the Fiscal Period of January until June 2015 as referred to in point 2 shall be done in accordance with this regulation. The oerpayment shall be compensated at the end of the fiscal year, so the amount of ta payable shall be the same as the amount of ta that has been paid. The Minister of Finance Regulation No. 122/ PMK.010/2015 shall be applied retroactiely. Thus, een though this Minister of Finance Regulation was issued at the end of June 2015, the proision shall be effectie starting from January (end)

5 TAX UPDATE Page 5 DO YOU KNOW? 1. The new Protocol signed between Indonesia and the Netherlands causes a maimum 5% WHT applied on the interest of loan made for the period more than two years or is paid in connection with the sale on credit of any industrial, commercial or scientific equipment, which preiously was 0%. 2. The 10% WHT on diidend under Ta Treaty between Indonesia and the Netherlands will be amended to 5%. Howeer, it is only applicable to a company that has a minimum of 25% ownership of which the company paying the diidends. 3. Good news, the goernment has epanded types of pioneer industry, which obtain the reduction of Corporate Income Ta. Thus, new Tapayers who inest in marine transportation industry; agricultural, forest, and fishery products processing industry; processing industry in Special Economic Zones, etc. currently may hae the benefit of such facility. (Minister of Finance Regulation No. 159/ PMK.010/2015 dated August 14, 2015). 4. Starting from September 13, 2015, moies; music, dance, and art performance; beauty pageant; ehibition; discotheque, karaoke, night club and the like; circus, acrobat, and magic show; sport competition; horse racing and motor ehicles racing are included as serices that are not subject to VAT. (Minister of Finance Regulation No. 158/PMK.010/2015 dated August 12, 2015). 5. The Goernment changes the list of international organizations that are not included as Income Ta Subject in Indonesia. The goernment deletes 5 international organizations from the list, which are Islamic Deelopment Bank, JICA, IBIC, ICD, and Technical Cooperation in Cooperatie between DMTCI/CLUSA of the Republic of Indonesia, and also adds 11 new International Organizations (Minister of Finance Regulation No. 156/PMK.010/2015 dated August 12, 2015). 6. Income in the form of salary or other payments from International Organizations that are receied by officials or employees who are Indonesian Citizens shall be subject to Income Ta based on the Income Ta Law, ecept if it has been clearly regulated in international agreements that such income will not be subject to Income Ta. The proision in that agreement will be effectie until the end of the said international agreements. (Minister of Finance Regulation No. 157/PMK.010/2015 dated August 12, 2015). 7. Certain business entities that change their names are still appointed as ta collectors. Certain business entities that are no longer owned by State Owned Enterprises will not be appointed as ta collectors (Director General of Taes Regulation No. PER 31/PJ/2015 dated August 5, 2015). 8. The Goernment simplifies the requirements for a Public Company that would like to apply for reduction of income ta by eliminating the preious proision which requires at least 40% of the paidin shares to be included in the deposit of Central Securities Depositories (Goernment Regulation No. 56 Year 2015 dated August 3, 2015). 9. Starting from July 24, 2015, the difference between the receied saing benefit and the paid premium is treated the same as an income of saing interest or deposit interest (which is subject to 20% final income ta) because it is not in accordance with the GR No. 51 Year 1994 and GR No. 131 Year (Director General of Taes Circular Letter No. SE 56/PJ/2015 dated July 24, 2015). 10. The facility of uncollected VAT and Sales Ta on Luury Goods shall be granted on Taable Goods that hae been eported and the re imported in the same quality as the quality when they are eported. This shall be alid to the etent that on the eport of the taable goods, it is stated that they will be re imported. (Minister of Finance Regulation No. 142/PMK.010/2015 dated July, ). read more...

6 TAX UPDATE Page 6 DO YOU KNOW? 11. Collection of Income Ta during audit, objection, reduction or cancellation of incorrect Ta Assessment Letter, appeal, and judicial reiew for all fiscal years which are still in process or performed after the enactment of Minister of Finance Regulation No. 39/PMK.011/2013 shall refer to the preailing ta laws and regulations when the Income Ta is collected. (Director General of Taes Circular Letter No. SE 57/PJ/2015 dated July 24, 2015). 12. Taable Entrepreneurs who are required to prepare e ta inoice and reise their Periodic VAT Return for Fiscal Year before the obligation of e ta inoice started, then the reision shall be done using the same Periodic VAT Return form as the reised form. (Director General of Taes Regulation No. PER 29/PJ/2015 dated July 23, 2015). (end) DISCLAIMER The information contained in this document is intended only to be a guide. It must not be relied on in, or applied to, specific situation without preiously seeking proper professional adice. Een if all reasonable care has been taken in its preparation, PB Taand do not accept any liability for any errors that it may contain or lack of update before being published, whether caused by negligence or otherwise, or for any losses, howeer caused, or sustained by any person. Description of, or reference or access to, other publication within publication do not imply endorsement of them.