a.

that pursuant to Article 15 of Law Number 7 of 1983 as last amended by Law Number 10 of 1994, to calculate the amount of Taxable Income for certain Taxpayers, it is necessary to enact Deemed Profit;

b.

that for legal certainty, it is necessary to enact deemed profit for domestic shipping company Taxpayers;

c.

that the provisions stipulated under the Minister of Finance Decree Number: 181/KMK.04/1995 dated 1 May 1995 concerning deemed profit for Taxpayers Engaged in the Shipping or Aviation Business Sectors have not sufficiently regulated this matter;

d.

that in respect of this matter, it is deemed necessary to re-stipulate the provisions on deemed profit for domestic shipping company Taxpayers, with a Minister of Finance of the Republic of Indonesia Decree.

 

 

1.

Law Number 7 of 1983 concerning Income Taxes (State Gazette of the Republic of Indonesia of 1983 Number 50, Supplement to the State Gazette Number 3263) as amended by Law Number 7 of 1991 concerning the Amendment to Law Number 7 of 1983 concerning Income Taxes (State Gazette of the Republic of Indonesia of 1991 Number 93, Supplement to the State Gazette of the Republic of Indonesia Number 3459) and Law Number 10 of 1994 concerning the Amendment to Law Number 7 of 1983 concerning Income Taxes, as amended by Law Number 7 of 1991 (State Gazette of the Republic of Indonesia of 1994 Number 60, Supplement to the State Gazette of the Republic of Indonesia Number 3567);

2.

Presidential Decree Number 96/M of 1993 concerning the Establishment of the Development Cabinet VI.

3.

Minister of Finance Decree Number: 181/KMK.04/1995 concerning deemed profit Income for Taxpayers Engaged in the Shipping or Aviation Business Sectors.

 

DIRECTOR GENERAL OF TAXES DECREE CONCERNING DEEMED PROFIT FOR DOMESTIC SHIPPING COMPANY TAXPAYERS.

 

Referred to herein this Decree, gross turnover is all remunerations or reimbursements in the form of cash or monetary value received or accrued by domestic shipping company Taxpayers from the transportation of people and/or goods loaded from one port to another port in Indonesia and/or from ports in Indonesia to ports overseas and/or vice versa.

 

(1)

The net income for domestic shipping company Taxpayers is set at 4% (four per cent) of the gross turnover referred to in Article 1.

(2)

The amount of Income Tax on income from the transportation of people and/or goods for domestic shipping company Taxpayers is 1.2% (one point two per cent) of the gross turnover referred to in Article 1 and is final.

 

Further provisions on the implementation of this Decree are stipulated by the Director General of Taxes.

 

With the enactment of this Decree, the Minister of Finance Decree Number: 181/KMK.04/1995 dated 1 May 1995 in respect of domestic shipping company Taxpayers is declared invalid.

 

This Decree shall come into force on the date of promulgation and is enacted for the first time for the 1996 tax year.

 

For public cognisance, this Decree shall be promulgated by placement in the Official Gazette of the Republic of Indonesia.

 

Enacted in Jakarta

on 14 June 1996

DIRECTOR GENERAL OF TAXES,

signed.

MAR'IE MUHAMMAD