GOV. REG. 27/2017

Tax Incentives for Cost Recovery Scheme Oil and Gas Contractors 

Redaksi DDTCNews | Jumat, 17 Februari 2023 | 16:00 WIB
Tax Incentives for Cost Recovery Scheme Oil and Gas Contractors 

Upstream oil and gas facilities. (foto: pertamina.com/energia)

JAKARTA, DDTCNews - Cooperation contract contractors (Kontraktor Kontrak Kerja Sama, hereinafter referred to as KKKS) are granted the flexibility to choose an oil and gas production sharing contract scheme. To attract investors, the government no longer limits the profit-sharing scheme to a gross split.

Through the Minister of Energy and Mineral Resources Regulation 12/2020, Cooperation Contract Contractors may choose a cost recovery scheme or a gross split scheme. For each contract scheme, the government also offers tax incentives. For cost recovery, the tax incentives are specifically regulated through Government Regulation (Gov. Reg.) 27/2017.

“... to increase the discovery of national oil and gas reserves and mobilise the investment climate and provide more legal certainty in upstream oil and gas businesses ...,” reads the consideration section of Gov. Reg. 27/2017 which reveals one of the reasons for the granting of tax incentives to oil and gas investors, quoted Friday (17/2/2023).

In further detail, tax incentives are granted to exploration and exploitation activities.

Exploration Tax Incentives

Article 26A of Gov. Reg. 27/2017 states that the incentives granted to contractors during the exploration period include, first, the exemption from import duty collection on the import of goods used in the context of oil operations.

Second, VAT or STLGs payable not collected on 4 aspects. The four aspects include the acquisition of certain taxable goods (BKP) and/or certain taxable services (JKP), imports of certain taxable goods, utilisation of certain intangible taxable goods and/or utilisation of certain taxable services used in the context of oil operations.

Third, exploration is not subject to Article 22 Income Tax collection on the import of goods eligible for an exemption from import duty.

Fourth, a reduction in Land and Building Tax of 100% of oil and gas land and building tax payable stated in the Notice of Tax Due during the exploration period.

Exploitation Tax Incentives

Article 26B further stipulates in detail tax incentives during exploitation. During the exploitation phase, including field processing, transportation, storage and sales of products as a continuation of the upstream oil and gas business, contractors are provided with a number of incentives.

Contractors will receive incentives, first, the exemption from import duty collection on the import of goods used in the context of oil operations.

Second, the exemption from import duty collection on the import of goods used during the exploitation period applies to 4 aspects. The four aspects include the acquisition of certain taxable goods and/or certain taxable services, imports of certain taxable goods, the utilisation of certain intangible taxable goods and the utilisation of certain taxable services.

Third, contractors will not be subject to Article 22 Income Tax collection on the import of goods eligible for an exemption from import duty collection.

Fourth, the maximum reduction of Land and Building Tax on the earth’s mantle is 100% of oil and gas Land and Building Tax payable listed in the Notice of Tax Due.

It should be noted, however, that these tax incentives may only be utilised by contractors that have adjusted their production sharing contracts (PSC) pursuant to Gov. Reg. 27/2017.

“Cooperation Contract Contractors ... may choose to follow the terms of the cooperation contract (KKS) or perform overall adjustments pursuant to the provisions under this Gov. Reg. by adjusting the cooperation contract within a period of 6 months from the enactment of this Gov. Reg.,” reads Article 38A of Gov. Reg. 27/2017.

With this provision, production sharing contract holders that have not adjusted their PSC with Gov. Reg. 27/2017 “seem” to be unable to utilise the tax incentives provided by the government whereas, the deadline for the adjustment to PSC contracts ended at the end of 2017. (sap)
 

Cek berita dan artikel yang lain di Google News.

KOMENTAR
0
/1000

Pastikan anda login dalam platform dan berkomentarlah secara bijaksana dan bertanggung jawab. Komentar sepenuhnya menjadi tanggung jawab komentator seperti diatur dalam UU ITE.

ARTIKEL TERKAIT
BERITA PILIHAN
Rabu, 25 Desember 2024 | 13:00 WIB KEBIJAKAN PAJAK

Kontribusi ke Negara, DJP: Langganan Platform Digital Kena PPN 12%

Rabu, 25 Desember 2024 | 12:30 WIB KEBIJAKAN KEPABEANAN

Fitur MFA Sudah Diterapkan di Portal CEISA sejak 1 Desember 2024

Rabu, 25 Desember 2024 | 11:30 WIB PMK 94/2023

Pemerikaan Pajak oleh DJP terhadap Kontraktor Migas, Apa Saja?

Rabu, 25 Desember 2024 | 11:00 WIB INFOGRAFIS PAJAK

Dokumen yang Dilampirkan saat Pemberitahuan Perpanjangan SPT Tahunan

Rabu, 25 Desember 2024 | 09:37 WIB KURS PAJAK 25 DESEMBER 2024 - 31 DESEMBER 2024

Kurs Pajak Terbaru: Rupiah Melemah terhadap Mayoritas Mata Uang Mitra

Rabu, 25 Desember 2024 | 09:30 WIB THAILAND

Negara Tetangga Ini Bakal Bebaskan Hutan Mangrove dari Pajak

Rabu, 25 Desember 2024 | 09:00 WIB LAYANAN PAJAK

Kantor Pajak Telepon 141.370 WP Sepanjang 2023, Kamu Termasuk?

Rabu, 25 Desember 2024 | 08:30 WIB KPP PRATAMA BADUNG SELATAN

Kantor Pajak Minta WP Tenang Kalau Didatangi Petugas, Ini Alasannya