ONEWAY SMARTAX INDONESIA
MINISTER OF FINANCE REGULATION (PMK) NO.187/PMK.03/2008
Dated 20 November 2008; About The Income Tax Imposition, Payment, Reporting, and Administration Procedure of Income Related With Construction Service Business.
ONEWAY SMARTAX INDONESIA
Office I: Mayapada Tower, 11th Floor Jl. Jend. Sudirman Kav. 28 Jakarta 12920, Indonesia Phone: (62-21) 5289 7484 Fax : (62-21) 5289 7399 Office II: c.o. Infinity Capital Bapindo Plaza, Citibank Tower, 27th Fl. Jl. Jend. Sudirman Kav. 54-55 Jakarta 12920, Indonesia Phone: (62-21) 526 0808 Fax : (62-21) 526 6006
Purwoko Ary Wibowo – Tax Director Email: purwoko@smartaxindonesia.com Website: http://www.smartaxindonesia.com
About The Income Tax Imposition, Payment, Reporting, and Administration Procedure of Income Related With Construction Service Business.
States 8 important technical and procedural guidance in relation with Article 9 Government Regulation No. 51 year 2008 as follow: 1. 2. 3. 4. 5. 6. 7. 8. Income from Construction Service Industry should be imposed by final income tax; The final income tax rate should be in accordance with the rate stated in PP No. 51 year 2008 (Please Refer to our previous Tax Fact 2008 Edition); Different Imposition, Payment and Reporting of Income treatment and procedure related to Construction Service Industry If the service user is an individual or entity that is obligated to collect tax or is not obligated to collect tax; If the Service Provider is a permanent establishment (BUT), then the final income tax related to construction service is not including Article 26 (4) Income Tax; Treatment of income tax (related with Construction Service) for contract agreement signed before 1 January 2008 (Payment made in up to 31 December 2008); Treatment of Income Tax (related with Construction Service) that have been imposed, collect, paid and report based on PP No. 140 year 2000 could be overbooked in accordance with PP No.51 year 2008; Underpayment income tax (related with Construction Service) for the overbooked final income tax payment must be paid not later on the 15 December 2008 of following the month in which the tax is due; This Regulation should be Retroactively effective since the 1st of January 2008.
IF THE SERVICE USER IS AN INDIVIDUAL OR ENTITY THAT IS OBLIGATED TO COLLECT TAX
IF THE SERVICE USER IS AN INDIVIDUAL OR ENTITY THAT IS NOT OBLIGATED TO COLLECT TAX;
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4. 5.
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Final Income Tax should be imposed when service payment incurred; Final Income Tax should be imposed based on Rate x Amount of payment exclude VAT (part from total contract value); The Service user should paid the imposed final income tax to the state which must be paid by the 10th of following the month in which the tax is due; Income Tax Payment should use Tax Payment Receipt (SSP); The Service User should deliver the tax collection receipt (Bukti Potong) to the Construction Service Provider every time they impose, collect, paid and report final income tax; the filing of the Return should be done by the 20th to the relevant Tax Office respectively, of the ensuing month;
1. 2.
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4. 5.
Final Income Tax should be imposed by the Service Provider when service payment incurred; Final Income Tax should be imposed based on Rate x Amount of payment exclude VAT (part from total contract value); The Service user should paid the imposed final income tax to the state which must be paid by the 15th of following the month in which the tax is due; Income Tax Payment should use Tax Payment Receipt (SSP); the filing of the Return should be done by the 20th to the relevant Tax Office respectively, of the ensuing month;
TREATMENT OF INCOME TAX (RELATED WITH CONSTRUCTION SERVICE) FOR CONTRACT AGREEMENT SIGNED BEFORE 1 JANUARY 2008 (PAYMENT MADE IN UP TO 31 DECEMBER 2008);
TREATMENT OF INCOME TAX (RELATED WITH CONSTRUCTION SERVICE) THAT HAVE BEEN IMPOSED, COLLECT, PAID AND REPORT BASED ON PP NO. 140 YEAR 2000
Payment made up to 31 December 2008 should be imposed an income tax regime based on PP No. 140 year 2000 about income in relation with Construction Service Industry and Minister of Finance Decree No. 559/KMK.04/2000; Payment made after 31 December 2008 should be imposed an income tax regime based on PP No. 51 year 2008 about income in relation with Construction Service Industry
could be overbooked in accordance with PP No.51 year 2008 as long as contract agreement signed since 1st of January 2008 and the Payment made after 31 December 2008
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