27 – 29 Apr 2011 | Bali

6 – 8 Jul 2011 | Bali

Overview

Although Oil & Gas companies, in particular Production Sharing Contractors, have been operated in Indonesia for so many years, but still it is interesting to discuss the implementation of taxation in oil and gas industry. The taxation of PSC companies are complex, in the sense that PSC Companies are unique and different with other companies operates in Indonesia, and therefore in some instances it creates different opinions and interpretations of the tax regulations applied in the oil and gas industry.

General Tax Laws are basis for the treatment of taxation in Indonesia, but in some instances PSContract and PSC's tax regulations do not conform to the General Tax Laws. What is the PSC Tax Regime, why it is different, in what areas are the different from the General Tax Laws? In order to understand the concept of PSC Principles, taxation, as well as understanding of the problems encountered in implementing taxation in oil and gas industry, we should have a clear understanding about general tax laws and implementing regulations in one hand and PSC Tax Regime on the other hand.

Meanwhile, in 2001 the Law No: 22 re OIL and GAS was promulgated and the Law No: 8 / 1971 re PERTAMINA was revoked. There are many matters on taxation to be dealt with at present and in the future. In order to set up a good strategic business decisions and planning, we should understand about the existing environment. This workshop is designed to give you an analytical tool as the basis for you to make judgment in dealing with problems in taxation that you are or will encounter.

Objectives

·         To provide an understanding on concept of the PSC Tax Regime and the Principles of PSContract as well as other types of contracts in the frame work of General Tax Laws and regulations.

·         To fully understand about problems arose in implementing the general tax laws and regulations, the impact of the amendment of the tax laws, and what will be the consequences for PSCs in this situation.

·         To understand the related tax provisions in the New Oil & Gas Law, what have been changed, what are the prospective operations under the Cooperative Contract.

·         To get a basic analytical tools for decision making and planning in taxation at present and in the future.

Who Should Attend ?

·         Staffs of Accounting, Finance, Procurement, Human Resources, Planning, and Legal Department;

·         Staffs of tax consultants;

·         Persons interested in oil & gas taxation.

Course Content

General Tax Laws:

• Indonesia Tax System
• Withholding Tax
• Value Added Tax
• Tax Compliance & Penalties
• Objections, Appeal & Judicial Review

PSC's Tax Regime:

• Ring Fence Policy,
• Uniformity Principle,
• Deductibility  Taxability,
• Special tax policies and regulations applicable to PSC,
• Forms of the PSCs entity,
• Problems in implementing the tax laws and regulations,
• Tax Cases & Tax Planning.

Principles of PSContract:

• Types of contracts,
• Crude and Gas Pricing,
• Cost recovery,
• Cash Settlement,
• Farm-In / Farm-Out
• Uplift,
• First Tranche Petroleum,
• Investment Credit,
• Abandonment Costs,
• Incentive Packages.

New Oil & Gas Law:

• Overview
• What have been changed? 
• Government Revenues & Tax related clauses
• Prospective type of cooperative contracts
• Economics & Financial Aspects
• What needs attention?

Course Leader

Drs. Moehardjo