09 – 11 Nov 2011 | Bandung

COURSE OVERVIEW

Almost 7 years the Law # 22 / 2001 regarding Oil and Gas has been enacted, there have been a lot of development and changes in implementation of the Production Sharing Concept. While on general tax laws, the Tax Law # 28 / 2007 regarding 3^rd Amendment on General Rules and Procedures of Taxation was enacted effective 1 January 2008. The tax policies in oil and gas were also discussed and drafted by the Directorate General of Tax towards amendment of the Income Tax Law and the Value Added Tax on Goods and Services Law.

Recently arise issues on taxation in oil and gas among others Home Office Overhead Charges, Cost Allocations, Uplift, First Tranche Petroleum, Farm In - Farm Out, etc. In addition tax audit conducted by the Directorate General of Tax in coordination with BPKP, BPMIGAS audit team have been last for a couple of years.

Under the Law # 22 / 2001 re Oil and Gas and the General Tax Laws year 2000, there were still a lot of questions raised with regard to how the implementation of the tax regulations in the oil and gas industry in particular the Production Sharing Contractors. Nevertheless, there are a lot of implementation regulations in the upstream activities of oil and gas industry, that has not been completely issued. Currently, almost all of the implementing tax regulations applicable to oil and gas industry were issued before the enactment of the New Oil and Gas law. Even after the enactment of the new Oil and Gas law there are only a view tax implementing regulations that were issued. While on the implementing tax regulations it was just recently issued with regard to VAT, that is Minister Of Finance Decree PMK # 178/2007.

In order that we are well informed and able to set up a strategic tax management in the current conditions, it is important to be aware about the issues and how to avoid any undesirable decisions from the tax authority as well as what should be done if it is happening. Those are the matters that will be discussed in the workshop.

COURSE OBJECTIVES

• To appraise status of the PSC's Tax Regime under the Law # 22/2001 re Oil and Gas.
• To fully understand how to deal with the tax assessments.
• To make tax planning.
• To anticipate the implementation of tax reform.

Presentation Method

• Instructor's presentation
• Interactive Discussions
• Today's issues and problems solving

COURSE CONTENT

Day 1 

• General Overview
• Indonesian Tax System
• Income Tax and VAT
• Tax Subjects & Non Tax Subjects
• Tax Objects & Non Tax Objects
• Tax Compliances and Management
• Rights & Obligations of Tax Payers

Day 2 

• Withholding Income Taxes
• Tax Treaty
• PSC's Tax Regime
• Ring Fence
• Uniformity Principle
• Deductibility Taxability
• PSC taxation under the Law # 22/2001

Day 3 

• Up Date on PSCs taxation
• Reform development on Income Tax and VAT
• Tax Audit

COURSE LEADER