MoF issues new regulation on VAT reimbursement procedure for geothermal developers

By Romel S. Gurky

The Minister of Finance (MoF) has issued new Regulation No 142/PMK.02/2013 on the procedure of reimbursement of value added tax (VAT) on taxable goods and/or services for developers of geothermal for power plants.

The new regulation, a copy of which was obtained Friday, stipulates that geothermal developers can get reimbursement for the VAT as long as certain conditions are met including having no tax arrears and other overdue obligations to the government related to geothermal development; have submitted the corporate tax forms in the past two successive years to the Directorate General of Taxation; and the government?s portion of revenue from the geothermal production has been entirely deposited in the government?s geothermal account.

The regulation also explains in details the procedure to get the VAT reimbursement.

Editing by Reiner Simanjuntak