Procedures and Imposition of Land-and-Building Tax for Minerals and Coal Mining Re-Defined

The Directorate General of Tax (”Director General”) has issued Regulation No. PER/47/PJ/2015 on Procedures for the Imposition of Land-and-Building Tax Within the Mining Sector for Minerals and Coal Mining (“2015 Regulation”).
 
In essence, the 2015 Regulation redefines the provision on the administration processes and calculation methods used when imposing land-and-building taxes on mining companies. Previously, these matters were regulated under Director General Regulation No. PER/32/PJ/2012  (“2012 Regulation”).
 
The 2015 Regulation is of relevance to all companies currently involved in or intending to become involved in minerals and coal-mining activities.
 
Land-and-Building Tax: Objects
In general, the Land-and-Building Tax (Pajak Bumi dan Bangunan – “PBB”) is imposed on land and buildings used for mining activities, regardless of whether they lie within or beyond the mining work areas granted by the relevant government.[1] In detail, land and buildings, defined as PBB objects, encompass: