Tax office issues circular letter for oil and gas firms

By Godang Sitompul

The Directorate General of Taxation has issued an instruction for oil and gas firms to provide details on their offshore operations, which will be used as the basis to determine tax objects in offshore upstream sector.

The instruction was stipulated in Circular Letter No. SE-46/PJ/2013 whose copy has been made available to Petromindo.com.

The directorate general said in the circular letter said the information regarding the offshore operation will be used as the basis for the issuance of land and building tax (better known in Indonesia by the acronym PBB) payable by the oil and gas firms.

The directorate general called on the oil and gas firms to make a report containing clear, correct and complete information with supporting documents.

The information includes the size of offshore areas in their working area and the size of the areas which they have yet to utilize for exploration and exploitation activities.

Editing by Johannes Simbolon