SKK Migas, tax directorate set up interconnection system

Upstream authority SKK Migas announced on Tuesday that it has set up an interconnection system with the Directorate General of Taxation to verify tax invoices for the purpose of reimbursing value added taxes paid by oil and gas contractors.

The interconnection system will speed up reimbursement process and improve investment climate in the industry, SKK Migas said in a statement.

The launching and information campaign on the new system was carried out on Dec. 10, 2015.

Communication between both, which was carried out manually before, now can be carried out online hanks to the system. One of the advantages is that the data will be delivered in a quick and accurate way.

The interconnection system is expected to become a starting point for the integration of information system between SKK Migas and the Ministry of Finance. In the middle of 2014, SKK Migas and the ministry signed a Memorandum of Understanding to build an integrated information system regarding the management of state assets in and state revenue from the oil and gas industry. The system is expected to improve data exchange between SKK Migas and directorates under the Ministry of Finance, including the Directorate General of Budget, Directorate General of Taxation, Directorate General of Customs and Excise, Directorate General of Treasury and Directorate General of State Assets, SKK Migas said.

Editing by Johannes Simbolon