Provisions on the Reconciliation, Depositing and Reporting of Geothermal Production Bonuses Further Regulated
The Ministry of Energy and Mineral Resources has issued Regulation No. 23 of 2017 on Procedures for the Reconciliation, Depositing and Reporting of Geothermal Production Bonuses, which is an implementing regulation to the provisions originally set out under Government Regulation No. 28 of 2016 and which relates to the following matters: 1) Annual geothermal steam and/or electrical-power production plans; 2) The imposition and calculation of geothermal production bonuses; 3) The reconciliation of production-bonus calculations; 4) The determination of production-bonus amounts and deposits; and 5) Mandatory reporting.
Foreign OTT Providers to Be Classified as Permanent Establishments
Endless efforts have been made by the Indonesian government to raise tax revenue from the profits which are generated by so-called over-the-top players. More recently, the Director General of Tax issued Circular Letter No. SE-04/PJ/2017 on the Determination of Permanent Establishments for Foreign Tax Subjects Which Are Providers of Applications and/or Content Services Through the Internet in a bid to classify Foreign OTT Providers as BUT which can be considered tax subjects under Indonesian taxation laws and regulations.
OJK Introduces Provisions on the Stipulation of Supervision Status and Follow-Up Measures for Commercial Banks
In a bid to improve the supervision of commercial banks and also as a follow up to Law No. 9 of 2016 on the Prevention and Control of Financial-System Crises, the Financial Services Authority has issued Regulation No. 15/POJK.03/2017. This new regulation sets out a new set of guidelines for the stipulation of supervision statuses and relevant follow up activities for commercial banks, which are now divided into systematically important banks and non-systematically important banks.
General Plan for National Energy
In order to implement Article 12, paragraph (2) and Article 17, paragraph (1) of Law No. 30 of 2007 on Energy, the Government has just issued Presidential Regulation No. 22 of 2017 on General Plan for National Energy. In essence, the General Plan for National Energy sets out a blueprint for the realization of National Energy Policy objectives and for the achieving of national energy independence and security by 2050. This blueprint mainly comprises of five sections, specifically: (1) Introduction; (2) The current condition of national energy policy and future expectations; (3) Vision, mission, purpose and objectives for national energy policy; (4) Policy and strategy for the national energy management; and (5) Closing remarks.
Govt. Revokes Guidelines for the Stipulation of Nuisance Permits
In an attempt to foster greater ease of operations for businesses as regards the conducting of their day-to-day activities and to therefore attract more investment into Indonesia as a consequence, the Ministry of Interior Affairs has issued Regulation No. 19 of 2017 in order to revoke Ministry Regulation No. 27 of 2009 on Guidelines for the Stipulation of Regional Nuisance Permits, as well as Ministry Regulation No. 22 of 2016 as its amendment. Consequently, the organization of nuisance permits will now refer to the Hinder Ordonnantie, Law No. 28 of 2009 on Regional Tax and Retribution, as well as the existing regulations issued by regional governments in each region of the country until there is further confirmation from central government relating to this matter.
Payment and Reporting of Income Tax from the Transfer of Real Estate under Collective-Investment Contract Schemes
In order to implement Article 5 of Government Regulation No. 40 of 2016 on Income Tax for Income Deriving from the Transfer of Real Estate under Certain Collective-Investment Contract Schemes, the Ministry of Finance has issued Regulation No. 37/PMK.03/2017, which sets out further provisions relating to the payment of income tax incurred as a result of the transfer of real estate under certain collective-investment contracts, as well as procedures for reporting such payments to tax-service offices. This new regulation repeals and replaces Ministry Regulation No. 200/PMK.03/2015 which was the previous framework that addressed these matters.
Govt. Redefines Classification of Motor Vehicles Subject to PPnBM
The Ministry of Finance has just issued Regulation No. 33/PMK.010/2017, which amends Ministry Regulation No. 64/PMK.011/2014 on Types of Motor Vehicles Subject to Luxury-Goods Sales Tax and Procedures for the Granting of Exemptions from Luxury-Goods Sales Tax. In essence, the Amendment updates the list of motor-vehicle types which are subject to luxury-goods sales tax (PPnBM) in order to conform to the newly issued World Customs Organization’s Harmonized System Nomenclature 2017 Edition, as well as to the ASEAN Harmonised Tariff Nomenclature 2017.
Government Simplifies Customs Registration
In order to implement Article 27 of Ministry of Finance Regulation No. 179/PMK.04/2016 on Customs Registration, the Director General of Customs and Excise has issued Regulation No. PER-04/BC/2017 on Guidelines for the Implementation of Customs Registration. In essence, this regulation simplifies a number of provisions which relate to customs registration. These provisions were previously set out under: (1) Director General Regulation No. PER-10/BC/2014 on Guidelines for the Implementation of Customs Registration; and (2) Director General Regulation No. P-25/BC/2010 on Guidelines for the Implementation of Customs Service Business Registration.
Guidelines for the Formulation of Mandatory Wage Structures and Scales for Businesses
The government has finally issued Ministry of Manpower Regulation No. 1 of 2017, which sets outguidelines for employers as regards the preparation of wage structures and scales.This regulation is an implementation of Article 14 (5) of Government Regulation No. 78 of 2015 on the Minimum Wage, which obliges all businesses to draft wage structures and scales for all of their employees.
New Regulation on Income-Tax Tariffs for Imports and Sales of Certain Goods
In a bid to redefine several provisions relating to the collection of income-tax payments for consignments of goods and import activities, as well as other business activities which were previously regulated under Ministry of Finance Regulation No. 154/PMK.03/2010 on the Payment of Article 22 Income Tax for Handover Goods and Other Activity Within the Import Sector and Within Other Sectors, the Ministry of Finance has issued Regulation No. 34/PMK.010/2017. The regulation addresses several matters, including eligible tax collectors, income-tax tariffs, income-tax tariff exemptions and income-tax tariff transfer procedures.