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 stipulate Deemed Profit;

b.

that with the Minister of Finance Decree Number: 417/KMK.04/1996 dated 14 June 1996 concerning Deemed Profit for Overseas Shipping and/or Airline Company Taxpayers, 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 is declared invalid;

c.

that for legal certainty, it is necessary to stipulate deemed profit for domestic airline company Taxpayers;

d.

that in respect of the matter, it is deemed necessary to re-stipulate the provisions on deemed profit for domestic airline company Taxpayers, with a Minister of Finance 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 several times, last 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: 417/KMK.04/1996 concerning Deemed Profit for Overseas Shipping and/or Airline Company Taxpayers.

 

MINISTER OF FINANCE OF REPUBLIK INDONESIA DECREE CONCERNING DEEMED PROFIT FOR DOMESTIC AIRLINE COMPANY TAXPAYERS.

 

Referred to herein this Decree:

a.

Domestic airline company Taxpayers are airline companies domiciled in Indonesia that accrue income based on charter agreements;

b.

Gross turnover for domestic airline company Taxpayers is all remunerations or reimbursements in the form of cash or monetary value received or accrued by Taxpayers based on charter agreements 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.

 

 

(1)

The net income for the Taxpayers referred to in Article 1 is set at 6% (six percent) of the gross turnover.

(2)

The amount of Income Tax on income from the transportation of people and/or goods for the Taxpayers referred to in Article 1 letter a is 1.8% (one point eight per cent) of the gross turnover referred to in Article 1 letter b.

(3)

Payment of Income Tax referred to in paragraph (2) is a tax credit that may be taken into account in the Annual Income Tax Return.

 

 

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

 

This Decree shall come into force on the date of enactment and be 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 23 July 1996

DIRECTOR GENERAL OF TAXES,

signed.

MAR'IE MUHAMMAD