Page 2 - Newsletter (New Fiscal Relaxation for Pharmaceutical, Upstream Oil & Gas and Tourism Sectors)

DDTC Newsletter Vol.02 | No.04 I September 2019 Page 2 of 5

NEW FISCAL RELAXATION FOR PHARMACEUTICAL, UPSTREAM OIL &
GAS AND TOURISM SECTORS

Pharmaceutical Wholesaler, The revision is conducted through the stipulation of
Distributors of Medical Devices, and MoF Regulation No. 119/PMK.02/2019 (MoF Reg
No.119/2019). This regulation is stipulated and effective
State-Owned Enterprises Subsidiary as of 16 August 2019 and automatically revokes MoF
Can Speed Up the Tax Refund Reg No. 218/PMK.02/2014 and MoF Reg No. 158/
PMK.02/2016.
The government has added the list of groups of
In this regulation, the government explains that there are
enterprises that can utilize the speed-up tax refund
two factors considered. The first one refers to Article 90
facility. This addition is provided in Minister of Finance
(b) of Government Regulation No. 23/2015 concerning
Regulation No. 117/PMK.03/2019 (MoF Reg No.
Joint Management on Natural Resources of Oil and Gas
117/2019). Stipulated and effective as of 19 August
in Aceh.
2019, this regulation changes several provisions that
were listed in MoF Regulation No. 39/PMK.03/2018
The regulation provides the timing of formation of Badan
concerning The Procedure of Preliminary Return for Tax
Pengelola Migas Aceh (BPMA), rights, obligations and
Overpayment (MoF Reg No. 39/2018).
implications arisen from cooperation contract agreement
of oil and gas profit sharing between Executive Work
In such regulation, there are three additional categories
Unit of Oil and Gas Upstream Activity and Contractor
of VAT Enterprise (Pengusaha Kena Pajak/PKP) that are
of Cooperation Contract located in Aceh transferred to
listed as low-risk PKP. With this status, these groups
BPMA.
get preliminary return (speed-up refund) for VAT
overpayment in every tax period.
Second, it is necessary to adjust the country’s part that
are able to be utilized for VAT and STLG reimbursement
The scope of low-risk PKP is as follows: first,
settlement. The adjustment is conducted according to the
pharmaceutical wholesaler (pedagang besar farmasi/
arrangement in the Cooperation Agreement.
PBF); second, distributors of medical devices; and third,
enterprises that are owned by State-Owned enterprises
In relation to this, the government adds one provision
(Badan Usaha Milik Negara/BUMN) by more than
in Article 3, which says the government would regulate
50% of ownership and have their financial statement
the scheme if the arrangement concerning the rights of
consolidated with the parent using the general applicable
contractor in obtaining VAT and STLG reimbursement
accounting principle.
are differently regulated to the Cooperation Agreement.
If so, the VAT and/or STLG reimbursement would be
PBF allowed to utilize this facility should hold
performed according to Cooperation Agreement.
pharmaceutical distributor certificate or PBF license
and certificate of good distribution practice for
The obtainment of reimbursement right can be proposed
pharmaceutical products. Accordingly, distributors
by the contractor after the payment is deposited to the
of medical devices should hold certificate of medical
government account. This payment is in the form of first
devices distribution or medical device distributor license
tranche petroleum (FTP) deposit and equity to be split
and certificate of good distribution practice for medical
from contractor, as regulated in Cooperation Agreement.
devices.
This provision is indifferent to the former regulation.
This policy’s purpose is to support National Health
Similar to previous provision, the amount of
Insurance (Jaminan Kesehatan Nasional/JKN) program
reimbursement proposals does not exceed the
and cash liquidity of taxpayers who conduct transactions
number of the country’s part that has been deposited.
with VAT collector through preliminary return for VAT
If the Cooperation Agreement regulates that the
overpayment.
reimbursement using country’s part does not include
Regulation on VAT Reimbursement FTP, the maximum amount of the reimbursement would
not exceed the equity value.
for Upstream Oil and Gas is Revised
As an additional information, FTP refers to certain amount
of crude oil and/or natural gas that are produced from a
The government has revised the regulation on the
procedure of VAT and Sales Tax on Luxury Goods (STLG) region within one calendar year that can be transferred to
Special Working Unit (Satuan Kerja Khusus/SKK) Oil and
reimbursement and for the acquisition of taxable goods
and/or services to the contractors of upstream oil and Gas or BPMA and/or contractor for each calendar year.
This is calculated prior being deducted by operational
gas activities.
and own-use production costs.