REPUBLIC OF INDONESIA STATE NEWS

No. 385, 2010 MINISTRY OF FINANCE. Earnings. Mandatory Tax. Special Relationship. Enterprise.

REGULATIONS OF THE Indonesian REPUBLIC FINANCE MINISTER

NUMBER 139 /PMK.03/ 2010 ABOUT

REDETERMINATION OF THE AMOUNT OF INCOME EARNED BY THE TAXPAYER IN THE COUNTRY FROM

THE EMPLOYER OF THE IBM OWNS THE IBM PRIVATE BUSINESS. SPECIAL RELATIONS WITH OTHER COMPANIES THAT ARE NOT ESTABLISHED AND NOT

HOUSED IN INDONESIA

WITH THE GRACE OF THE GOD ALMIGHTY REPUBLIC OF INDONESIA,

DRAW: A. that under the provisions of Article 18 of the paragraph (3d) Invite-Invite Number 7 Year 1983 on Income Tax as it has been last modified by Act No. 36 of 2008 is set that the magnitude of the income obtained by Mandatory Service. A domestic private person's taxes from employers who have special relationships with other companies that are not established and are not located in Indonesia can be redefined, in the event that the employers divert all over or in part. The income of the person's private taxes in the country is in the form of a fee or Other expenses paid to companies that are not established and are not located in Indonesia;

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b. that based on consideration as intended on the letter a, and to carry out the provisions of Article 18 of the paragraph (3e) of the Act No. 7 of 1983 on the Income Tax as it has been several times amended last by Act Number 36 In 2008, it was necessary to establish the Minister of Finance Regulation on the Redetermination of the Income Taxpayer of Vested Persons In The Country of a Workforce Which Has a Special Relationship with Other Companies Not Established and There is no position in Indonesia;

Given: 1. Law No. 6 of 1983 on General Terms and Taxation Methods (sheet of State of the Republic of Indonesia in 1983 Number 49, Additional Gazette of the Republic of Indonesia No. 3262) as it has been several times amended by Law No. 16 Of 2009 (sheet Of State Of The Republic Of Indonesia In 2009 Number 62, Additional Sheet Of The Republic Of Indonesia Indonesia Number 4999);

2. Law No. 7 Year 1983 on Income Tax (State of the Republic of Indonesia Year 1983 Number 50, Additional Gazette Republic of Indonesia Number 3263) as has been several times amended last by Act No. 36 2008 (sheet State Of The Republic Of Indonesia 2008 Number 133, Additional Gazette Of The Republic Of Indonesia Number 4893);

3. Decision No. 56/P 2010; DECIDED:

STIPULATING: THE REGULATION OF THE MINISTER OF FINANCE ON THE REDETERMINATION OF THE MAGNITUDE OF THE INCOME EARNED BY THE TAX OF PERSONS IN THE COUNTRY OF THE EMPLOYERS WHO HAVE A SPECIAL RELATIONSHIP WITH OTHER COMPANIES THAT ARE NOT ESTABLISHED AND ARE NOT POSITIONED IN INDONESIA.

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Article 1 In this Financial Minister Ordinance referred to: 1. The Income Tax Act is Law Number 7

Year 1983 of the Income Tax as it has been several times amended last with Act No. 36 of 2008.

2. Special Relationship is a special relationship as set up Section 18 of the paragraph (4) of the Income Tax Act, or special relationship as set out in the Doubled Tax Avoidance and Prevention Prevention (P3B) Agreement between IBM and the United States. Indonesia with the applicable partner country.

Article 2 (1) of the income acquired Wajib Tax of a personal person in

the country with respect to the work, activities, or services of the employers who have a Special Relationship with Overseas companies can be redefined, in the event that the employers diverts. All or part of the income of Wajib Tax is referred to in the form of charging or other expenditure to the company outside the country.

(2) Wajib Tax of the person in the country as well as Referred to in a paragraph (1) is an employee of a company abroad who has a Special Relationship with the employers.

(3) the charges or other expenses charged or paid by the employers to an overseas company that have a Special Relationship between the other of the charges or expenses with engineering services, management services, or other services.

Article 3 (1) The income of Wajib Tax of a private person in the country

in connection with the work, activities, or services as referred to in Article 2 is determined back with The reasonable income level should be obtained by the Tax Wajib in question.

(2) The earnings as referred to in paragraph (1) are the summation of the income of Wajib Tax received in Indonesia And an income that is accepted abroad.

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(3) The amount of income difference after being redefined as referred to in paragraph (1) must not exceed the amount of expenses or other expenses charged or paid by the employers to the company Outside the country there is a Special Relationship.

(4) For the income of Compulsory Taxes in a pre-determined country as set forth in paragraph (3) to the basis of the calculation of the Income Tax cuts as referred to in Article 21 and/or Article 26 of the Income Tax Act.

(5) In order to redefine the magnitude of the income of Wajib Tax persons in the country as referred to in paragraph (1), the Director General of Tax can establish the standard guidelines of foreign employees ' salaries.

Article 4 of the Regulation of the Minister of Finance Started acting on the day of the invitation. In order for everyone to know, order the authoring of the Minister of Finance Regulation with its placement in the News of the Republic of Indonesia.

Specified in Jakarta on 11 August 2010 MINISTER OF FINANCE REPUBLIC OF INDONESIA, AGUS D.W. MARTOWARDOJO

promulred in Jakarta on 11 August 2010 MINISTER OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA, PATRIALIST AKBAR

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