REGULATION OF THE GOVERNMENT OF INDONESIA

NUMBER 40 YEAR 1985

ON INCOME TAX BENEFITS FOR STATE OFFICIALS, CIVIL SERVANTS, MEMBERS OF THE UNITED STATES MEMBER STATES REPUBLIC OF INDONESIA

1985 NUMBER 56 ARMED REPUBLIC OF INDONESIA, AND RETIREES ON SALARIES, HONORARIUM, PENSION MONEY,

AND OTHER ALLOWANCES WERE CHARGED TO THE COUNTRY ' S FINANCES

PRESIDENT OF THE REPUBLIC OF INDONESIA,

DRAW: a. that under the 1984 Income Tax Act,

income in salary, honorarium, pension money, and other allowances charged to the State Treasury received or obtained by State Officials, Civil Servants, The members of the Armed Forces of the Republic of Indonesia, and the Pensions are the objects of the Income Tax;

b. that the current level of payroll is not yet possible for State Officials, Civil Servants, members of the Armed Forces of the Republic of Indonesia, and the Retirees carry the burden of the Income Tax;

c. that the provisions of the Government Regulation No. 4 Year 1964 on the Income Tax of the Civil Servants's salary in the Rupiah Currency which is charged to the Indonesian General Finance is no longer in compliance with the new tax-invitation rules;

d. That is, therefore, the need to regulate the granting of income tax benefits to State Officials, Civil Servants, members of the Armed Forces of the Republic of Indonesia, and the retirees for payment of salaries, honorarium, pension money, and Other allowances are charged to State Finance, with Government Regulation;

Given: 1. Article 5 of the paragraph (2) of the Basic Law of 1945;

2. Law Number 7 Year 1983 on Income Tax (state Gazette 50 in 1983, Additional State Sheet 3263);

DECIDED: By repeating the Government Regulation No. 4 of 1964 on Revenue Tax of the The salaries of the civil servants in the Rupiah currency are charged to the Indonesian Public Finance.

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establish: REGULATIONS OF THE GOVERNMENT OF THE REPUBLIC OF INDONESIA ON

INCOME TAX BENEFITS FOR STATE OFFICIALS, CIVIL SERVANTS, MEMBERS OF THE ARMED FORCES OF THE REPUBLIC OF INDONESIA, AND THE RETIREES ON SALARIES, THE GOVERNMENT OF INDONESIA. HONORARIUM, PENSION MONEY, AND OTHER BENEFITS-BENEFITS ARE CHARGED TO THE FINANCIAL STATE.

Article 1

To State Officials, Civil Servants, members of the Armed Forces of the Republic of Indonesia, and the Pensions including the Widows and Duda and/or their children, granted the tax allowance of the owed income Tax. In the income of salaries, honorarium, pension money, and other allowances charged to the State Treasury.

Article 2 of the implementation of the Government Regulation is further regulated by the Minister of Finance.

Article 3 of the Regulation This government entered into effect on the promulgated date and was first enforced For the 1984 Tax Year. In order for everyone to know, order this Government Regulation invitation with its discoverer in the State Sheet of the Republic of Indonesia. Set in Jakarta on 6 September 1985 PRESIDENT REPUBLIC OF INDONESIA ttd. SUHARTO was promulred in Jakarta on 6 September 1985 MENTERI/SECRETARY OF STATE OF THE REPUBLIC OF INDONESIA ttd. SUDHARMONO, S.H.

SHEET OF STATE REPUBLIC OF INDONESIA 1985 NUMBER 56

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EXPLANATION OF INDONESIA ' S GOVERNMENT REGULATION NUMBER 40 OF 1985 ON INCOME TAX BENEFITS FOR STATE OFFICIALS, CIVIL SERVANTS, MEMBERS OF THE ARMED FORCES OF THE REPUBLIC OF INDONESIA, AND RETIREES OF INCOME IN TERMS OF SALARIES, HONORARIUM, PENSION MONEY, AND OTHER ALLOWANCES CHARGED TO THE TREASURY OF THE GENERAL STATE ARTICLE 21 OF THE LAW NUMBER 7 OF 1983 on Income Tax oblivion the Government of the Government who pays the salary, wages, honorarium, fixed benefits, and other payers with any name in connection with work or office charged to State Finance, to cut the PPH Article 21 of the Income Tax Act of 1984 in debt. Such provisions are in accordance with the soul and tax system, in particular the income tax that was in effect this adult as a result of the tax law in Indonesia in 1983. But given that such cuts would reduce salaries, wages, honorarium, and so on received or obtained by State Officials, Civil Servants, members of the Armed Forces of the Republic of Indonesia, and the Pensiers including widows and the And/or his children, while generally income received or obtained from the Finance of the State has not reached an adequate level, then the Government sees the need to provide Income Tax benefits to the Official. State, civil servants, members of the Republican Armed Forces. Indonesia, and the top-income redepositions with respect to the job or post that funds are charged to the State Finance. Section for section 1

This income tax allowance is provided only to State Officials, Civil Servers, members of the Armed Forces of the Republic of Indonesia, and the Pensions based on the provisions of the Tax Act. In 1984, the income tax on wages, honorarium, pension money, and other allowances in the currency of the rupiah or in foreign currency received or obtained in connection with the job or office of the funds. charged to State Finance including Regional Finance and Perseroan Companies Fund Savings and Insurance CIVIL SERVICE (PERSERO TASPEN). The amount of the allowance is the amount of Income Tax owed and payable on salary, honorarium, money

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retirees, and those benefits.

Section 2 of the Finance Minister is authorized to set out on how the bulk of the income tax allowance and other matters relating to the implementation of the Government Regulation (s) This.

Article 3 is pretty clear.

ADDITIONAL SHEET OF STATE REPUBLIC OF INDONESIA NUMBER 3306

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