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.
|
|
Thursday, 17 September 15
MARKET INSIGHT - KONSTANTINOS KONTOMICHIS
Having experienced, as it was much anticipated, a poor 1st half combined with negative forecasts, summer, in sharp contrast, proved to be more hope ...
Wednesday, 16 September 15
SLOWER GROWTH IN WORLD COAL DEMAND AND LOWER INTERNATIONAL COAL PRICES LED A DECLINE IN INDONESIAN COAL PRODUCTION
COALspot.com: Slower growth in world coal demand particularly China and lower international coal prices have led to a decline in Indonesian coal pr ...
Wednesday, 16 September 15
HIGHER TAXES COULD LEAD GREEK SHIP OWNERS OUT OF THE COUNTRY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
A potential taxation overhaul of the shipping industry in Hellas, which could see the loss of particular tax benefits for ship owners, could lead t ...
Tuesday, 15 September 15
WORLD SEABORNE TRADE: ENTERING INTO A ROLE REVERSAL? - CLARKSONS
Over the past decade, world seaborne trade growth has been dominated by dry bulk and container trade. However, developments in the global economy t ...
Tuesday, 15 September 15
Q2'16 RICHARDS BAY COAL SWAPS DIP TO $ 51.10 PER TON
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$ ...
|
|
|
Showing 2811 to 2815 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Malabar Cements Ltd - India
- Power Finance Corporation Ltd., India
- Deloitte Consulting - India
- India Bulls Power Limited - India
- Ind-Barath Power Infra Limited - India
- Videocon Industries ltd - India
- Price Waterhouse Coopers - Russia
- Independent Power Producers Association of India
- Petrochimia International Co. Ltd.- Taiwan
- Agrawal Coal Company - India
- Holcim Trading Pte Ltd - Singapore
- OPG Power Generation Pvt Ltd - India
- Gujarat Sidhee Cement - India
- McConnell Dowell - Australia
- Alfred C Toepfer International GmbH - Germany
- Minerals Council of Australia
- PowerSource Philippines DevCo
- Romanian Commodities Exchange
- Lanco Infratech Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Indogreen Group - Indonesia
- Indo Tambangraya Megah - Indonesia
- Aditya Birla Group - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- The Treasury - Australian Government
- Kartika Selabumi Mining - Indonesia
- European Bulk Services B.V. - Netherlands
- Neyveli Lignite Corporation Ltd, - India
- Coastal Gujarat Power Limited - India
- New Zealand Coal & Carbon
- Cement Manufacturers Association - India
- Energy Link Ltd, New Zealand
- Sojitz Corporation - Japan
- Medco Energi Mining Internasional
- Baramulti Group, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Toyota Tsusho Corporation, Japan
- Thai Mozambique Logistica
- Attock Cement Pakistan Limited
- Karbindo Abesyapradhi - Indoneisa
- Semirara Mining Corp, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Anglo American - United Kingdom
- Bayan Resources Tbk. - Indonesia
- Kaltim Prima Coal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Trasteel International SA, Italy
- TNB Fuel Sdn Bhd - Malaysia
- Star Paper Mills Limited - India
- Orica Mining Services - Indonesia
- Tata Chemicals Ltd - India
- White Energy Company Limited
- Ambuja Cements Ltd - India
- Savvy Resources Ltd - HongKong
- MS Steel International - UAE
- Indika Energy - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Eastern Coal Council - USA
- Karaikal Port Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- Riau Bara Harum - Indonesia
- Wilmar Investment Holdings
- Gujarat Mineral Development Corp Ltd - India
- Bangladesh Power Developement Board
- Orica Australia Pty. Ltd.
- Directorate Of Revenue Intelligence - India
- Indian Oil Corporation Limited
- Electricity Authority, New Zealand
- Billiton Holdings Pty Ltd - Australia
- Formosa Plastics Group - Taiwan
- Georgia Ports Authority, United States
- Oldendorff Carriers - Singapore
- Mercuria Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Jorong Barutama Greston.PT - Indonesia
- Pendopo Energi Batubara - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Jaiprakash Power Ventures ltd
- Ceylon Electricity Board - Sri Lanka
- IHS Mccloskey Coal Group - USA
- Bhatia International Limited - India
- Kapuas Tunggal Persada - Indonesia
- International Coal Ventures Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Altura Mining Limited, Indonesia
- Petron Corporation, Philippines
- Kumho Petrochemical, South Korea
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sarangani Energy Corporation, Philippines
- Sakthi Sugars Limited - India
- Wood Mackenzie - Singapore
- Directorate General of MIneral and Coal - Indonesia
- San Jose City I Power Corp, Philippines
- AsiaOL BioFuels Corp., Philippines
- ASAPP Information Group - India
- Semirara Mining and Power Corporation, Philippines
- Meralco Power Generation, Philippines
- Parry Sugars Refinery, India
- Bahari Cakrawala Sebuku - Indonesia
- Banpu Public Company Limited - Thailand
- CIMB Investment Bank - Malaysia
- Bulk Trading Sa - Switzerland
- Bank of Tokyo Mitsubishi UFJ Ltd
- Meenaskhi Energy Private Limited - India
- Sree Jayajothi Cements Limited - India
- Siam City Cement - Thailand
- LBH Netherlands Bv - Netherlands
- Kepco SPC Power Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Australian Coal Association
- Carbofer General Trading SA - India
- Chettinad Cement Corporation Ltd - India
- Binh Thuan Hamico - Vietnam
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- SN Aboitiz Power Inc, Philippines
- Manunggal Multi Energi - Indonesia
- Thiess Contractors Indonesia
- Ministry of Finance - Indonesia
- Chamber of Mines of South Africa
- ICICI Bank Limited - India
- Larsen & Toubro Limited - India
- Interocean Group of Companies - India
- Mercator Lines Limited - India
- Dalmia Cement Bharat India
- GN Power Mariveles Coal Plant, Philippines
- Salva Resources Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Latin American Coal - Colombia
- Australian Commodity Traders Exchange
- PNOC Exploration Corporation - Philippines
- Bukit Makmur.PT - Indonesia
- Coal and Oil Company - UAE
- Commonwealth Bank - Australia
- Coalindo Energy - Indonesia
- Uttam Galva Steels Limited - India
- Bharathi Cement Corporation - India
- Madhucon Powers Ltd - India
- Rio Tinto Coal - Australia
- Ministry of Transport, Egypt
- The State Trading Corporation of India Ltd
- Sical Logistics Limited - India
- IEA Clean Coal Centre - UK
- Marubeni Corporation - India
- Kohat Cement Company Ltd. - Pakistan
- London Commodity Brokers - England
- SMG Consultants - Indonesia
- Africa Commodities Group - South Africa
- Pipit Mutiara Jaya. PT, Indonesia
- Essar Steel Hazira Ltd - India
- GAC Shipping (India) Pvt Ltd
- Edison Trading Spa - Italy
- Mjunction Services Limited - India
- Iligan Light & Power Inc, Philippines
- Central Java Power - Indonesia
- Globalindo Alam Lestari - Indonesia
- Central Electricity Authority - India
- Simpson Spence & Young - Indonesia
- Heidelberg Cement - Germany
- Global Business Power Corporation, Philippines
- Ministry of Mines - Canada
- Standard Chartered Bank - UAE
- Metalloyd Limited - United Kingdom
- SMC Global Power, Philippines
- South Luzon Thermal Energy Corporation
- Bhushan Steel Limited - India
- Port Waratah Coal Services - Australia
- Antam Resourcindo - Indonesia
- Timah Investasi Mineral - Indoneisa
- Vedanta Resources Plc - India
- Grasim Industreis Ltd - India
- Miang Besar Coal Terminal - Indonesia
- VISA Power Limited - India
- Posco Energy - South Korea
- Therma Luzon, Inc, Philippines
- The University of Queensland
- Siam City Cement PLC, Thailand
- Leighton Contractors Pty Ltd - Australia
- PTC India Limited - India
- Sinarmas Energy and Mining - Indonesia
- Maheswari Brothers Coal Limited - India
- Borneo Indobara - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- GVK Power & Infra Limited - India
- Sindya Power Generating Company Private Ltd
- Vizag Seaport Private Limited - India
- TeaM Sual Corporation - Philippines
- Intertek Mineral Services - Indonesia
- Goldman Sachs - Singapore
- Economic Council, Georgia
- Eastern Energy - Thailand
- Parliament of New Zealand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Planning Commission, India
- Renaissance Capital - South Africa
- Makarim & Taira - Indonesia
- Xindia Steels Limited - India
- Straits Asia Resources Limited - Singapore
- Barasentosa Lestari - Indonesia
- Kideco Jaya Agung - Indonesia
- CNBM International Corporation - China
- Tamil Nadu electricity Board
- Gujarat Electricity Regulatory Commission - India
- GMR Energy Limited - India
- Singapore Mercantile Exchange
- Jindal Steel & Power Ltd - India
- Indian Energy Exchange, India
- Merrill Lynch Commodities Europe
- Indonesian Coal Mining Association
- Bhoruka Overseas - Indonesia
- Aboitiz Power Corporation - Philippines
- Mintek Dendrill Indonesia
- Kobexindo Tractors - Indoneisa
- Krishnapatnam Port Company Ltd. - India
- Energy Development Corp, Philippines
|
| |
| |
|
