Budgetary changes to ‘government-borne taxes’ - essentially tax subsidies for certain preferential goods and activities - have allowed the Minister of Finance to issue Regulation No. 24/PMK.011/2010 on Government-Borne Value Added Tax Upon Imported Goods for Upstream Oil and Gas Business Activities, and Geothermal Exploration Business Activities for Budget Year 2010.
In accordance with the state budget, the regulation states that the value added tax that would otherwise be paid on imported goods for upstream oil and gas business activities, as well as geothermal exploration business activities will be absorbed by the government. However, that import preference is only extended to those exploration and extractive goods that cannot be produced domestically in Indonesia, or if the Indonesian producers cannot supply the level demand for a given good.
Furthermore, only certain businesspersons can apply for the tax facility. Those in the field of upstream oil and gas business activities must have a cooperation contract with the government that accords with, and was signed after Law No. 22 of 2001 on Oil and Gas. Those in the field of geothermal energy must have either a contract with the state, a geothermal mining business license issued after 31 December 1994, or have been assigned by the government to conduct a preliminary survey.
To obtain the government-borne value added tax facility, one must apply to the Director General of Customs and Excise, and must submit an Import Plan that has been approved by either the Director General of Oil and Gas (for upstream oil and gas business activities), or the Director General of Mineral, Coal and Geothermal (for geothermal exploration business activities). The Import Plan must include information specified by Article 5 (3) of this regulation. The application must be submitted with a request for import duty exemption upon imports of goods relating to upstream oil, gas, and geothermal exploration activities - in accordance with Minister of Finance Regulation No. 177/PMK.011/2007.
Each quarter, the Director General of Customs and Excise will submit a list of government borne tax to the Director General of Tax, who will file a request to the Director General of Budgetary to issue a ‘nil payment instruction’.
The regulation has been in force since 29 January 2010, and will be valid until 31 December 2010.
Budgetary changes to ‘government-borne taxes’ - essentially tax subsidies for certain preferential goods and activities - have allowed the Minister of Finance to issue Regulation No. 24/PMK.011/2010 on Government-Borne Value Added Tax Upon Imported Goods for Upstream Oil and Gas Business Activities, and Geothermal Exploration Business Activities for Budget Year 2010.
In accordance with the state budget, the regulation states that the value added tax that would otherwise be paid on imported goods for upstream oil and gas business activities, as well as geothermal exploration business activities will be absorbed by the government. However, that import preference is only extended to those exploration and extractive goods that cannot be produced domestically in Indonesia, or if the Indonesian producers cannot supply the level demand for a given good.
Furthermore, only certain businesspersons can apply for the tax facility. Those in the field of upstream oil and gas business activities must have a cooperation contract with the government that accords with, and was signed after Law No. 22 of 2001 on Oil and Gas. Those in the field of geothermal energy must have either a contract with the state, a geothermal mining business license issued after 31 December 1994, or have been assigned by the government to conduct a preliminary survey.
To obtain the government-borne value added tax facility, one must apply to the Director General of Customs and Excise, and must submit an Import Plan that has been approved by either the Director General of Oil and Gas (for upstream oil and gas business activities), or the Director General of Mineral, Coal and Geothermal (for geothermal exploration business activities). The Import Plan must include information specified by Article 5 (3) of this regulation. The application must be submitted with a request for import duty exemption upon imports of goods relating to upstream oil, gas, and geothermal exploration activities - in accordance with Minister of Finance Regulation No. 177/PMK.011/2007.
Each quarter, the Director General of Customs and Excise will submit a list of government borne tax to the Director General of Tax, who will file a request to the Director General of Budgetary to issue a ‘nil payment instruction’.
The regulation has been in force since 29 January 2010, and will be valid until 31 December 2010.
Ada Pertanyaan? Hubungi Kami 
Professional Solutions
University Solutions
Pro
My Workspace
Pro AI
Terfavorit
Allex QnA
Pro Compliance
