After almost a year after it was originally enforced, the government has finally set an applicable tax treatment for Gross-Split Production Sharing Contracts (“
GS-PSC”)
[1] through the issuance of Government Regulation
No. 53 of 2017 on Tax Treatment for Upstream Oil-and-Gas Business Activity through Gross-Split Production Sharing Contracts (“
Regulation 2017”).
Regulation 2017 aims to clarify the types and calculation formula for payable income tax, as well as the applicable income-tax tariff and incentive for oil-and-gas contractors (“Contractors”) operating under the GS-PSC scheme.
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