Regulation of Ministry of Finance No. 126/PMK.010/2017

Summary of Regulation of the Minister of Finance Number 126/PMK.010/2017 regarding Government-Borne Income Tax on Interest or Yield from Government Securities Issued in International Markets and Third Party’s Income from Services Provided to the Government in the Issuance and/or Buyback/Exchange of Government Securities in International Markets in Fiscal Year 2017

The State Revenues and Expenditures Budget for Fiscal Year 2017 provides a budget ceiling for subsidy for government-borne income tax on interest or yield from government securities issued in international markets and third party’s income on services provided to the Government in the issuance and/or buyback/exchange of government securities in international markets. The Government Securities may be in the form of promissory notes in foreign exchange or Government sharia securities or government sukuk issued based on the sharia principles in foreign exchange, in accordance with applicable laws and regulations. In this regard, income in the form of interest or yield from Government securities also includes discount rate of government securities issued in international markets and third party’s income as intended above includes mencakup fee for the services of the third party and payment for costs incurred in the implementation of the issuance and/or buyback/exchange of government securities in international markets.

For the implementation of this regulation, the Minister of Finance has assigned the Director of Taxation Potentials, Compliance and Revenues at the Directorate General of Taxation by specifying the duties to be performed and actions to be taken, including preparing and submitting accountability report on the implementation of the provision of subsidy for government-borne income tax.

This regulation has come into effect as of September 19, 2017 and retroactive as of January 1, 2017.

 

The English version of the regulation has not released yet, please see the Bahasa version as below:

126_PMK.010_2017

 

 

 

 

 

Source https://legalcentric.com/content/view/128690

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