Indonesia: New regulations on mineral and coal sales

Published by Angharad Lock, Digital Assistant Editor
World Coal, Wednesday, 23 September 2015 16:00

In order to increase state revenue from the mining sector the Government of Indonesia has executed a new final income tax on any sale of mineral and coal, adding to the burden on the Indonesian mining industry.

The new income tax, Article 22 Income Tax, is regulated under Minister of Finance (MOF) Regulation No. 107/PMK.010/2015 regarding the Collection of Withholding Tax in Connection with Payment for Delivery of Goods and Imports or Other Business Activities. The regulation came into force 60 days after its issuance on 8 June 2015.

Article 22 Income Tax is at the rate of 1.5%, and applies to any sale, either domestic or export, of non-processed or non-refined minerals and coal. Exporters must pay the income tax to the state treasury and evidence of payment will be verified by the Directorate General of Customs and Excise as a required supporting document for the export notification and will be used as a basis to issue an export clearance.

This income tax is only applicable to holders of a mining business license.

This new regulation is the fourth amendment of MOF Regulation No. 154/PMK.03/2010 regarding Article 22 Income Tax.