Procedure and administration in fulfilling LBT obligation for Upstream Petroleum Industry has been regulated in PMK-63/PMK.03/2013. The regulation defines object of the Oil & Gas LBT, pointing PSC companies as the tax payers, LBT settlement, obligations to file LBT Returns (SPOP) along with the integrated exhibits (LSPOP). PMK-63 is still in force for 2015 LBT obligation but some of the terms are revised and some new provisions are added.

In 10th February 2015, Ministry of Finance (MoF) commenced a new regulation, PMK-26/PMK.03/2015, provides some amendment to PMK-63.


PMK-26 basically provides some additional provisions such as LBT Returns obligation and supporting document, LBT obligation when any transfer of PSC, LBT obligation on PSC termination, LBT Returns (SPOP and LSPOP) verification and clarification, and guidance on coordination between DGT and Ministry or agency who regulates or manages the upstream industry.

SPOP and LSPOP Obligation

Emphasize clause that regulates obligation to prepare and fill SPOP and LSPOP clearly, correctly, and completely and supported with the related document. Unfortunately, the Regulation doesn’t provide detail of the document must be attached. In previous clause (PMK-63), PSC is only required to attach working area map.

There is also requirement to provide Power of Attorney (PoA) if the returns are not signed by the tax payers.

LBT Obligation on PSC Transfer or Termination

In the case of any changes in Tax Payer on the LBT (PSC transfer or changes of PSC contractors), the LBT rights and obligations will be also transferred to the new contractors (the new Tax Payer).

When PSC Companies submit termination proposal, they shall advice related tax office for the termination, by the end of respective fiscal year at the latest. Response in regards of tax payer status will be given within 1 month since notification submission.

Verification and Clarification

An additional procedure introduced in the new regulation that DGT will run verification on the submitted SPOP and LSPOP and could be proceeded to clarification process. Tax Payers must provide response within 10 working days. Response is submitted through Ministry or Agency who regulates the industry and further submitted to DGT within 5 working days. Responses could be either stating the SPOP/LSPOP has been correct or stating any mistake on the SPOP and attach the revision.

Coordination between DGT and MoEMR or the Agency who manage upstream sector (SKK Migas)

Coordination is expanded to support verification and clarification activity done by DGT, to provide information of tax payer existence, information in regards of any changes in operatorship, transfer of PSC or any information related to PSC termination.