/ Friday, October 05, 2018

To:Clients of Salaki & Salaki

Re:Tax Alert – Other Types of Services as Object of

Income Tax Art. 23

Ministry of Finance Regulation (PMK) Number 141/PMK.03/2015regarding other types of services as referred in Article 23 Paragraph (1) LetterC Number 2 of Tax Law Number 7 Year 1983 regarding Income Tax as amended several times latest with Tax Law Number 36 Year 2008.

  • PMK 141/PMK.03/2015 replaces PMK 244/PMK.03/2008.This PMK regulates about other types of services as referred in Article 23 Paragraph (1) Letter C Number 2 of Income Tax Law Number 7 Year 1983 regarding Income Tax as amended several times with Tax Law Number 36 Year 2008.
  • PMK 141/PMK.03/2015 mentions the new types of services that become objects of Income Tax Art. 23. Therefore, there are additional objects of Income Tax Art. 23 after this regulationenters into force.
  • PMK 141/PMK.03/2015 also regulates further provision, which previously was discussedin SE-53/PJ/2009,on the definition ofincomegross amount as the base for Income Tax Art. 23 with-holdingas referred in this regulation. (Article 1 Paragraph 3 , 4 and 5)
  • The new other types of services that become objects of Income Tax Art. 23 after the entry into force of this PMK are as follows:
  1. Legal services
  2. Architectural services
  3. Urban planning and landscape architectural services
  4. Making of promotional film, commercials, poster, photo, slide, photo negative, banner, pamphlet, billboards and folder services
  5. Website creation or website management services
  6. Internet services including internet connection services
  7. Storage, processing, and/or distribution of data, information and/or program services
  8. Maintenance services of vehicle and/or land, marine or air transportation
  9. Septic tank suction services
  10. Pool maintenance services
  11. Freight forwarding services (the definition is described in Article 2 Paragraph 6)
  12. Logisticsservices
  13. Document management services
  14. Loadingand unloading services
  15. Laboratory and testing services except for services performed by educational institutions for academic research
  16. Parking management services
  17. Ground drilling services
  18. Preparation and land processing services
  19. Nursery seedlings and planting seedlings services
  20. Plant (vegetation) maintenance services
  21. Harvesting services
  22. Processing of agricultural, plantation, fishery, livestock and/or forestry products services
  23. Decoration services
  24. Printing or publishing services
  25. Translation services
  26. Transport or forwarding services except those thatareregulated in Art. 15 of Income Tax Law
  27. Port services
  28. Transport through pipelines services
  29. Child day care management services
  30. Training and courses services
  31. Cash transfer and deposit to ATM services
  32. Certification services
  33. Survey services
  34. Tester services
  35. Other services for which payment is charged to State Government Budget(APBN) or Provincial Government Budget (APBD)
  • There are additional types of mining support services for geothermal and oil & gas mining, which become objects of Income Tax Art. 23 with-holding. The detailscan be found on Article 2 Paragraph (1) Letter s - aq.
  • There are additional types of mining services and mining support services for other mining besides oil & gas, which become objects of Income Tax Art. 23 with-holding. The details can be found on Article 2 Paragraph (2) Letter i - m.

PMK No. 141/PMK.03/2015 is enacted on July 27,2015. This regulation becomes effective 30 days after the date of enacting, which is August 27, 2015.

Attached with this Tax Alert is a copy of PMK 141/PMK.03/2015.

Please note that this TAX ALERT is by no means a summary of all the main issues covered in and concerns arising from the stated above new tax regulation.

KAP SALAKI-SALAKI
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