PLN asset revaluation subject to 10% tax
Saturday, November 18 2000 - 05:00 AM WIB
Director General of Taxes Machfud Sidik reiterated that his office would charge the 10 percent income tax on the difference from the revaluation of the assets of state electricity company PT PLN.
"Legally, the tax must be paid," Machfud told journalists after a hearing with the House of Representatives' special team on taxation.
He explained that PLN's assets revaluation would likely result in a difference of Rp 130 trillion, that would be subject to the 10 percent income tax. If the number was deducted by PLN's net losses of around Rp 30 trillion, then the Rp 100 trillion worth of income resulted from assets revaluation would be subject to the 10 percent income tax.
Machfud's statement was to clarify his earlier statement that PLN would not be required to pay the 10 percent income tax from the revaluation of its assets because of its huge potential losses.
PLN president Kuntoro Mangkusubroto has stated that PLN would conduct revaluation of its assets, as suggested by the government, as long as the government would not charge income tax for the asset revaluation results.
Earlier, Coordinating Minister for Economic Affairs Rizal Ramli said that the government would require PLN to conduct assets revaluation to help solve its poor finance as the government would never transfer its loans of Rp 21 trillion to PLN into equity. (*)