BANKING

According to Law No 10 Year 1998 Regarding Amendment Of Law Number 7 Year 1992 Regarding Banking, Bank shall be a business entity that raises funds from the public in the form of savings and channels them to the public in the form of credit and or other forms in order to improve the standard of living of society in general.

According to Law No 7 Tahun 1992 Regarding Banking as amended by Law No 10 Tahun 1998; Commercial Banks shall be banks conducting business activities conventionally and or based on Syariah (Islamic) principles, which offer payment transaction services; and Rural Banks shall be banks conducting business activities conventionally or based on Syariah Principles, which do not offer payment transaction services.

Foresight have assisted several cases on banking industry such as:

• Tax Audit,
• Objection,
• Appeal,
• Reduction on administrative sanction,
• General tax consultation, and
• Revaluation on fixed assests

We have summarized essential tax regulation related to banking industry as follows:

• Circular Letter SE-121/PJ/2010 Regarding Confirmation On Value Added Tax Treatment On Business Activities Of Bank
• Law Number 7 Year 1992 Regarding Banking
• Law No 10 Year 1998 Regarding Amendment Of Law Number 7 Year 1992 Regarding Banking