Obligation on Oil & Gas and Mining Companies to Collect Withholding Income Tax

Minister of Finance has issued Regulation No. 39/PMK.011/2013 on Obligation to Collect Withholding Income Tax From Third Parties by Companies Bound by a Production Sharing Contract, Contract of Work, or Mining Management Cooperation Contract (“Regulation”).

The Regulation intends to harmonize the discrepancy between the provisions that regulate the collection of withholding income tax from third parties stipulated under a Production Sharing Contract, Contract of Work, or Mining Management Cooperation Contract and the provisions of Law No. 7 of 1983 on Income Tax, as amended several times, the last being Law No. 36 of 2008 (“Tax Law”).