We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Wednesday, 23 September 15
INDONESIA: NEW REGULATION APPLIES FINAL INCOME TAX TO MINERAL AND COAL SALES - FLORENCE GRACIA SANTOSO
 To increase state revenue from the mining sector, the Government of Indonesia has imposed 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, i.e. 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 June 8, 2015. This new regulation is the fourth amendment of MOF Regulation No. 154/PMK.03/2010 regarding Article 22 Income Tax.
Article 22 Income Tax, at the rate of 1.5%, now applies to any sale, either domestic or export, of non-processed or non-refined minerals (metal, non-metal and stone) and coal. Exporters must pay the income tax to the state treasury through a post office, foreign exchange bank or any bank appointed by the MOF. 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 (Izin Usaha Pertambangan). It does not apply to holders of a Contract of Work (Kontrak Karya) or Coal Contract of Work (Perjanjian Kerjasama Pengusahaan Pertambangan Batubara), who are subject to different financial obligations under their respective contracts.
Since it is a final income tax, this tax will be imposed on the gross income of the company without deducting any expenses incurred to produce, collect or maintain such income. This means that the company must pay the income tax even if the company is not profitable, since this tax is payable upon any sale of minerals and coal.
Income that is subject to final income tax cannot be combined with other income (which is subject to non-final income tax) in the calculation of income tax as reflected in a company’s annual tax return. Final income tax paid under this rule cannot be deducted against non-final income tax.
In an attempt to promote domestic processing and refinery activities, this income tax will not apply to any refined minerals or processed coal. Only minerals in the form of ore or concentrate and non-agglomerated coal are subject to the 1.5% income tax. Under current rules, only a few minerals (copper, iron, manganese, lead and zinc) are allowed to be exported not in refined form (only processed to a certain level). Other minerals cannot be exported unless refined as required under Minister of Energy and Mineral Resources ("MEMR") Regulation No. 1 of 2014 as amended by MEMR Regulation No. 8 of 2015.
The Government of Indonesia has made efforts to reduce the export of unrefined minerals by imposing complicated, lengthy and expensive procedures for such exports. Mineral exporters must first register with the Ministry of Trade to obtain a Registered Exporter Certificate for the Export of Mining Products (Eksportir Terdaftar Produk Pertambangan). This certificate is valid for three years but may be extended an unspecified number of times. To obtain the certificate, the exporter must obtain an approval from the Directorate General of Mineral and Coal ("DGMC").
Another approval from the DGMC is required for the export of unrefined (processed) minerals. This approval is only valid for six months and may be extended. Before any mining products are exported they must first be verified and approved by a Ministry of Trade-registered surveyor to ensure they have been processed/refined to the required standard.
In addition, the export of unrefined (processed) minerals is subject to a very high export tax rate. The export tax rate in 2015 has ranged from 30% to 40% which is scheduled to increase to 50% to 60% as of January 1, 2016 until January 12, 2017. As of January 12, 2017, under current rules, only refined minerals can be exported.
By Florence Gracia Santoso
SSEK Indonesian Legal Consultants
 About Florence Gracia Santoso
Florence is experienced in energy, infrastructure, investment and mergers and acquisitions, and has been involved in a number of acquisitions involving industrial and trading companies. Since joining SSEK Legal Consultants in 2010, Florence Gracia Santoso has been involved in numerous major mining transactions.
This article is intended for informational purposes only and does not constitute legal advice. This article should not be acted upon in any specific situation without appropriate legal advice.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Tuesday, 22 September 15
1Q16 FOB INDONESIA COAL SWAP DECLINED 6.49 PER CENT M-M
COALspot.com: Indonesian coal swap for delivery 4Q 2015 declined month on month and week over week.
The 4Q swap declined $ 2.29 (-5.42%) per t ...
Tuesday, 22 September 15
FOB RICHARDS BAY COAL SWAPS FALL CONTINUES
COALspot.com: API4 FOB Richards Bay Coal swap for delivery 4Q' 2015 declined week over week and month over month.
The 4Q swap was down US$ ...
Monday, 21 September 15
Q4' 15 FOB NEWCASTLE COAL SWAP CLOSED HIGHER THAN Q2' 16 SWAP
COALspot.com: API 5 FOB Newcastle Coal swap for 4Q’ 2015 delivery increased $0.43 per ton (1.01%) month over month to US$ 42.95 per ton. The ...
Monday, 21 September 15
CFR SOUTH CHINA COAL SWAP GAINED WEEK OVER WEEK
COALspot.com: API 8 CFR South China Coal swap for 4Q’ 2015 delivery declined just US$ 0.45 (0.90 %) per ton month over month.
A commodit ...
Monday, 21 September 15
KOMIPO OF KOREA INVITES BIDS FOR BITUMINOUS COAL
COALspot.com: South Korean state-owned utility Korea Midland Power (KOMIPO) issued an new tender for 390,000 Metric Tons (MT) of minimum 4,600 kcal ...
|
|
|
Showing 2801 to 2805 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Singapore Mercantile Exchange
- Global Business Power Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Intertek Mineral Services - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Leighton Contractors Pty Ltd - Australia
- TeaM Sual Corporation - Philippines
- Goldman Sachs - Singapore
- Straits Asia Resources Limited - Singapore
- Sindya Power Generating Company Private Ltd
- Mercator Lines Limited - India
- ASAPP Information Group - India
- Bangladesh Power Developement Board
- Bayan Resources Tbk. - Indonesia
- San Jose City I Power Corp, Philippines
- Meenaskhi Energy Private Limited - India
- Meralco Power Generation, Philippines
- Xindia Steels Limited - India
- Parry Sugars Refinery, India
- Price Waterhouse Coopers - Russia
- Commonwealth Bank - Australia
- Alfred C Toepfer International GmbH - Germany
- Eastern Energy - Thailand
- Rashtriya Ispat Nigam Limited - India
- PowerSource Philippines DevCo
- PNOC Exploration Corporation - Philippines
- Directorate Of Revenue Intelligence - India
- Gujarat Sidhee Cement - India
- Interocean Group of Companies - India
- Baramulti Group, Indonesia
- Sojitz Corporation - Japan
- Aboitiz Power Corporation - Philippines
- London Commodity Brokers - England
- Eastern Coal Council - USA
- Therma Luzon, Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Banpu Public Company Limited - Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Holcim Trading Pte Ltd - Singapore
- Karbindo Abesyapradhi - Indoneisa
- Kartika Selabumi Mining - Indonesia
- Krishnapatnam Port Company Ltd. - India
- ICICI Bank Limited - India
- Chettinad Cement Corporation Ltd - India
- Carbofer General Trading SA - India
- Kaltim Prima Coal - Indonesia
- Latin American Coal - Colombia
- Karaikal Port Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- AsiaOL BioFuels Corp., Philippines
- Kepco SPC Power Corporation, Philippines
- MS Steel International - UAE
- Bhatia International Limited - India
- Thiess Contractors Indonesia
- Central Electricity Authority - India
- Asmin Koalindo Tuhup - Indonesia
- Lanco Infratech Ltd - India
- Indian Energy Exchange, India
- Samtan Co., Ltd - South Korea
- Australian Commodity Traders Exchange
- Sakthi Sugars Limited - India
- Maheswari Brothers Coal Limited - India
- Oldendorff Carriers - Singapore
- Orica Mining Services - Indonesia
- SMG Consultants - Indonesia
- Aditya Birla Group - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Anglo American - United Kingdom
- Directorate General of MIneral and Coal - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Indian Oil Corporation Limited
- Thai Mozambique Logistica
- Trasteel International SA, Italy
- Dalmia Cement Bharat India
- Independent Power Producers Association of India
- Maharashtra Electricity Regulatory Commission - India
- PTC India Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Bhushan Steel Limited - India
- Energy Link Ltd, New Zealand
- Coalindo Energy - Indonesia
- Manunggal Multi Energi - Indonesia
- Kobexindo Tractors - Indoneisa
- GAC Shipping (India) Pvt Ltd
- Tamil Nadu electricity Board
- Jindal Steel & Power Ltd - India
- Iligan Light & Power Inc, Philippines
- Salva Resources Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- The University of Queensland
- Jaiprakash Power Ventures ltd
- Madhucon Powers Ltd - India
- Coastal Gujarat Power Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- India Bulls Power Limited - India
- Mjunction Services Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Timah Investasi Mineral - Indoneisa
- Antam Resourcindo - Indonesia
- Renaissance Capital - South Africa
- Simpson Spence & Young - Indonesia
- GMR Energy Limited - India
- McConnell Dowell - Australia
- Sinarmas Energy and Mining - Indonesia
- Deloitte Consulting - India
- Kohat Cement Company Ltd. - Pakistan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- OPG Power Generation Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Indogreen Group - Indonesia
- IEA Clean Coal Centre - UK
- Australian Coal Association
- Bharathi Cement Corporation - India
- Star Paper Mills Limited - India
- Kideco Jaya Agung - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- White Energy Company Limited
- Wood Mackenzie - Singapore
- Standard Chartered Bank - UAE
- Indo Tambangraya Megah - Indonesia
- Savvy Resources Ltd - HongKong
- Binh Thuan Hamico - Vietnam
- Marubeni Corporation - India
- European Bulk Services B.V. - Netherlands
- Mercuria Energy - Indonesia
- Ministry of Finance - Indonesia
- South Luzon Thermal Energy Corporation
- Parliament of New Zealand
- Videocon Industries ltd - India
- Orica Australia Pty. Ltd.
- Heidelberg Cement - Germany
- Electricity Authority, New Zealand
- Rio Tinto Coal - Australia
- Central Java Power - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Port Waratah Coal Services - Australia
- Bukit Makmur.PT - Indonesia
- The State Trading Corporation of India Ltd
- Formosa Plastics Group - Taiwan
- Economic Council, Georgia
- The Treasury - Australian Government
- Electricity Generating Authority of Thailand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Pendopo Energi Batubara - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Barasentosa Lestari - Indonesia
- Siam City Cement - Thailand
- Bukit Baiduri Energy - Indonesia
- GVK Power & Infra Limited - India
- Gujarat Electricity Regulatory Commission - India
- Indonesian Coal Mining Association
- Cigading International Bulk Terminal - Indonesia
- Sical Logistics Limited - India
- VISA Power Limited - India
- Vizag Seaport Private Limited - India
- Toyota Tsusho Corporation, Japan
- Petron Corporation, Philippines
- Indika Energy - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Romanian Commodities Exchange
- Sree Jayajothi Cements Limited - India
- Essar Steel Hazira Ltd - India
- Grasim Industreis Ltd - India
- Globalindo Alam Lestari - Indonesia
- Coal and Oil Company - UAE
- Semirara Mining and Power Corporation, Philippines
- Posco Energy - South Korea
- IHS Mccloskey Coal Group - USA
- Global Green Power PLC Corporation, Philippines
- Vedanta Resources Plc - India
- CNBM International Corporation - China
- Ministry of Mines - Canada
- International Coal Ventures Pvt Ltd - India
- Attock Cement Pakistan Limited
- Wilmar Investment Holdings
- Medco Energi Mining Internasional
- Borneo Indobara - Indonesia
- Ministry of Transport, Egypt
- Bhoruka Overseas - Indonesia
- Bulk Trading Sa - Switzerland
- Kumho Petrochemical, South Korea
- Siam City Cement PLC, Thailand
- Minerals Council of Australia
- Chamber of Mines of South Africa
- Gujarat Mineral Development Corp Ltd - India
- Tata Chemicals Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Malabar Cements Ltd - India
- SMC Global Power, Philippines
- Semirara Mining Corp, Philippines
- Georgia Ports Authority, United States
- Miang Besar Coal Terminal - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Ambuja Cements Ltd - India
- Cement Manufacturers Association - India
- Merrill Lynch Commodities Europe
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Energy Development Corp, Philippines
- Sarangani Energy Corporation, Philippines
- Makarim & Taira - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Ind-Barath Power Infra Limited - India
- New Zealand Coal & Carbon
- CIMB Investment Bank - Malaysia
- PetroVietnam Power Coal Import and Supply Company
- Larsen & Toubro Limited - India
- Agrawal Coal Company - India
- Mintek Dendrill Indonesia
- Africa Commodities Group - South Africa
- LBH Netherlands Bv - Netherlands
- Planning Commission, India
- Edison Trading Spa - Italy
- Altura Mining Limited, Indonesia
- Global Coal Blending Company Limited - Australia
|
| |
| |
|
