Page 4 - Newsletter (New Fiscal Relaxation for Pharmaceutical, Upstream Oil & Gas and Tourism Sectors)

DDTC Newsletter Vol.02 | No.04 I September 2019 Page 4 of 5

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

As information, this provided facility is an implementing In addition, there are seven other groups of taxpayers
regulation of Government Regulation No. 27 of 2017 who can conduct bookkeeping in foreign language
concerning refundable operating costs and the treatment and other currencies aside from Rupiah. These seven
of income tax for upstream oil and gas sector. groups have not been changed from the provisions in the
previous regulation.
Holder of Mineral and Coal Contract
of Work May Conduct Bookkeeping in First, taxpayers of foreign capital investment. Second,
taxpayers who are contractors with cooperation contract
Foreign Language (kontraktor kontrak kerjasama/KKKS) in the field of oil
and gas. Third, permanent establishment (Badan Usaha

Tetap/BUT). Fourth, taxpayers who enrol their shares
To provide legal certainty to taxpayers who conduct
business in the field of mineral and coal mining, the issuance partially or wholly in foreign stock exchanges.
government has released MoF Regulation No. 123/
PMK.03/2019 (MoF Reg No. 123/2019). This regulation, Fifth, the collective investment contract (kontrak investasi
which was stipulated on 27 August 2019, adds the list kolektif/KIK) that issues mutual funds denominated in
of taxpayers who can use bookkeeping in English and US dollars and obtained a Letter of Effective Notification
currency unit of US dollars. of Registration Statement (Surat Pemberitahuan
Efektif Pernyataan Pendaftaran) from an independent
The taxpayers refer to those in the coal contract of institution appropriate with the provisions concerning
work (Perjanjian Kerjasama/Karya Pengusahaan Financial Services Authority.
Pertambangan Batubara/PKP2B), Contract of Work
(CoW) and PKP2B whose contract is extended and Sixth, taxpayers who are subsidiary companies owned
turned into a Special Mining Business Licence (Izin Usaha and/or controlled by an affiliated overseas parent
Pertambangan Khusus/IUPK). company. Seventh, taxpayers who present financial
statement in their functional currency use unit of US
In this regulation, taxpayers in the CoW operating based dollars in accordance with financial accounting standards
in force in Indonesia.
on contract/agreement with government in accordance
with statutory provisions in the field of mineral and coal
mining may use English and US Dollar currency in their This regulation is the third changes of MoF Regulation
bookkeeping. No. 196/PMK.03/2017 (MoF Reg No. 196/2007) and it
has started to take effect since its enactment date.

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