Director General of Taxes Circular Number: SE-35/PJ.4/1996

 

 

 

 

 

In respect of the enactment of the Minister of Finance of the Republic of Indonesia Decree Number: 475/KMK.04/1996 dated 23 July 1996 concerning Deemed Profit for Domestic Airline Company Taxpayers, for the smooth implementation of the decree, the following is hereby confirmed:

1.

Taxpayers covered by the Minister of Finance Decree Number: 475/KMK.04/1996 are airline company Taxpayers domiciled in Indonesia accruing income based on charter agreements. A charter agreement includes all forms of charter, including space charter for people and/or goods.

2.

The gross turnover of domestic airline company Taxpayers used as the basis for calculating deemed profit is all consideration value or remuneration in the form of cash or monetary value received or accrued from the transportation of people and/or goods loaded from one port to another port in Indonesia and/or from a port in Indonesia to a port overseas based on charter agreements.

3.

The amount of Deemed Profit for domestic airline company Taxpayers referred to in point 2 is 6% (six per cent) of gross turnover. The amount of Income Tax that must be settled is 1.8% (one point eight per cent) of gross turnover.

4.

Settlement of Income Tax referred to in point 3 is the payment of Article 23 Income Tax which may be credited against Income Tax payable in the Annual Income Tax Return for the tax year concerned.

5.

Income Tax payable referred to in point 5 is paid through withholding by the charterer insofar as the charterer is a government agency, resident corporate Tax Subject, event organiser, permanent establishment or another representative of a foreign company. Withholding is performed upon payment or when the remuneration or fee value becomes payable. For the Withholding Tax, the charterer is required to:

 

a.

provide a Withholding Receipt to the party receiving or accruing income, using the form as per Appendix I;

 

b.

remit Income Tax payable to the tax payment bank or Post Office no later than the 10th of the following month after the month of payment or the remuneration or consideration value becomes payable using a Tax Payment Slip (SSP);

 

c.

file the withholding and remittance to the Tax Office no later than the 20th of the following month after the month of payment or the remuneration or consideration value becomes payable using the form as per Appendix II;    

6.

With the enactment of this Circular Letter, the provisions relating to domestic airline company Taxpayers confirmed in the Director General of Taxes Circular Letter Number: SE-27/PJ.4/1995 dated 12 May 1995 are declared no longer valid.

7.

For the smooth implementation of this Circular Letter, the Head of the Tax Office should explain to the Taxpayers concerned registered at the respective Tax Offices.

 

 

This is to be implemented accordingly.

 

1 October 1996
DIRECTOR GENERAL OF TAXES,
signed
FUAD BAWAZIER