Indonesia: Minister of Finance Regulation number 191/PMK.010/2015 Revaluation of Assets for Fiscal Purposes which is applied in 2015 and 2016
Tax Alert:November 2015/Indonesia
The Ministry of Finance has recently issued a new regulation on fixed asset revaluation for tax purposes as a new special tax incentive to taxpayers. Fixed asset revaluation is previously regulated by Minister of Finance regulation number 79/PMK.03/2008, whereby any additional value of fixed assets gained from revaluation is subject to 10% final income tax. (Tax Alert:November 2015/Indonesia)
Under this new special tax regulation, taxpayers who submit an application for fixed asset revaluation in 2015 and 2016 are granted a special tax treatment, i.e. reduction of the final tax rate. The tax rate reduction will depend on the timing of the taxpayer’s application for asset revaluation.
The new regulation can be applied by Corporate Taxpayers, Individual Taxpayers who maintain bookkeeping, and also Permanent Establishments, including taxpayers that maintain USD bookkeeping and those that have performed assets revaluation under the previous number 79/PMK.03/2008 within the last five years. As this special tax treatment is intended to boost the collection of the State’s tax revenues, the regulation requires that any tax payable due to this revaluation must be settled prior to the submission of the application to the tax office.
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