Wow! These Taxpayers’ Tax Liabilities Are Paid by the Government

JAKARTA, DDTCNews - The government needs to pay Taxes on Certain Goods and Services on Electricity (Pajak Barang dan Jasa Tertentu atas Tenaga Listrik, hereinafter referred to as PBJT-TL) for electricity consumed by certain taxpayers.

The said certain taxpayers refer to taxpayers that have signed an agreement with the government in the upstream oil and gas business sectors or other business sectors. These taxpayers constitute parties eligible for certain tax incentives from the government.

“Certain Taxpayers … are taxpayers that have signed an agreement with the government in the upstream oil and gas business sectors or in other business sectors, whose tax payable is waived and borne by the government,” reads Article 14 paragraph (2) of Gov. Reg. 4/2023, quoted on Saturday (4/2/2023).

PBJT-TL payments by the government come from a certain amount which is part of state revenue for every business activity carried out by the taxpayer. 

Payment of PBJT-TL by the Government is sourced from a certain amount constituting part of state revenues for every business conducted by the taxpayers. The Minister of Finance is the party mandated to pay PBJT-TL for certain taxpayers.

On the other hand, the Minister of Finance will further regulate the provisions on the procedures for the payment of PBJT-TL for certain taxpayers. Further regulation will be stipulated by the Minister of Finance Regulation (MoF Reg.).

On a side note, the provision on the payment of PBJT-TL for certain taxpayers by the government is not  new. A similar provision was formerly regulated under MoF. Reg. 9/2016 as amended by MoF. Reg. 195/2017.

Referring to these regulations, Cooperation Contract Contractors (Kontraktor Kontrak Kerja Sama, hereinafter referred to as KKKS) are borne and exempt from taxes other than the corporate tax that applies in Indonesia. These taxes include taxes imposed by local governments, namely surface water tax, groundwater tax and street lighting tax (the term before PBJT-TL).

The incentives are provided based on cooperation contracts between the Special Task Force for Upstream Oil and Gas Business Activities (Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi, hereinafter referred to as SKK Migas) and KKKS. There are also incentives related to income tax on upstream oil and gas businesses with certain provisions. (sap)