GOVERNMENT REGULATION NO.46 YEAR 2013 dated 12 June 2013

The Brief Contents:

  1. Object of Tax: Gross Turnover of business entity either individual or corporate for IDR 4.800.000.000,- or less in period of 1 tax year. The basic turnnover is taken from the last year turnover.
  2. Subject of Tax: Individual and Corporate excluding Permanent Establishment who has gross turnover for IDR 4.800.000.000,- or less in period of 1 tax year.
  3. Rate of Tax: 1% (one percentage) on the gross turnover (sales) called PPh Article 4 (2) Final. The business entity who only get an income which is subject to this kind of tax, no need to pay PPh Article 25 as from the tax month of July 2013.

Value Added Tax on Own Activities to Build
Effective 22 November 2012

Minister of Finance of Republic of Indonesia has issued a Decree Number 163/PMK.03/2012 dated 22 October 2012 regarding Value Added Tax on “Own Activities to build”, the brief contents:

  1. Space of building is 200M2 or more
  2. VAT Payable is 10% of tax base
  3. Tax base is 20% of expenditure (10%x20%=2%)

The Minister of Finance decree Number 39/PMK.03/2010 is not valid any more (300M2 or more - 10%x40% = 4% - 1 April 2010).

Jakarta, 3 December 2012
OZIMI CONSULTANT  - The Registered Tax Consultant
Konsultan Pajak Terdaftar - Jakarta 

Transfer Pricing (TP)  – Annual Corporate Tax Return – Anticipation of  Tax  Audit TP Issue
Ozimi Consultant - Indonesian Tax Consultant – Registered Tax Consultant

Ozimi Consultant, a tax consultant firm in Jakarta – Indonesia with more than 10 years experience is to be at your service professionally.

Regarding Transfer Pricing, Article 18 paragraph (3) Income Tax Laws authorizes the Directorate General of Taxation (DGT) to make an adjustment on transactions among parties having special relationship whether already fulfill “arm’s length principle”. Kep. Dirjen Pajak No.Kep-01/PJ.7/1993 is a guidance of tax audit to taxpayers having special relationship. Further, Surat Edaran Dirjen Pajak No. SE-04/PJ/7/1993 is a guidance to handle Transfer Pricing issues.

To implement Double Tax Avoidance (DTA), a Certificate of Domicile is needed.

Effective the 1st January 2010, the Certificate of Domicile should use Form DGT 1 or DGT 2 as defined by PER-61/09.

Please be aware that without Certificate of Domicile using Form DGT 1 or DGT 2, the DTA can’t be implemented and the general tariff of PPh 26 would be applied.