JAKARTA. Government has revised the Government Regulation No 79/2010 on Cost Recovery and Tax Income Treatment on Upstream Oil and Gas in order to jack up oil and gas production. The revised government regulation offers fiscal and non-fiscal incentives to contractor in conducting exploration. On fiscal, for an example, government covers import value added tax (VAT), import duty, domestic VAT, and property tax during exploration. Government also exempts contractor from withholding tax over cost recovery of state’s property utilization related to upstream oil and gas sector, as well as from withholding tax on overhead cost.
Govt offers incentives to oil and gas investors
JAKARTA. Government has revised the Government Regulation No 79/2010 on Cost Recovery and Tax Income Treatment on Upstream Oil and Gas in order to jack up oil and gas production. The revised government regulation offers fiscal and non-fiscal incentives to contractor in conducting exploration. On fiscal, for an example, government covers import value added tax (VAT), import duty, domestic VAT, and property tax during exploration. Government also exempts contractor from withholding tax over cost recovery of state’s property utilization related to upstream oil and gas sector, as well as from withholding tax on overhead cost.