INCOME TAX BENEFITS FOR STATE OFFICIALS, CIVIL SERVANTS, MEMBERS OF THE REPUBLICAN ARMED FORCES

INDONESIA, AND RETIREES ON SALARIES, HONORARIUM, PENSION MONEY, AND OTHER ALLOWANCES ON SEPTEMBER 6, 1985, THE PRESIDENT OF THE REPUBLIC OF INDONESIA,

DRAWS: A. that under the 1984 Income Tax Act, income is 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 Sheet

Number 50 Year 1983, Extra State Sheet Number 3263);

DECIDED: By repeating Government Regulation No. 4 of 1964 on Revenue Tax from The salaries of the civil servants in the Rupiah currency are charged to the Indonesian Public Finance. SET: REGULATION 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 PENSIONERS ON SALARIES, HONORARIUM, PENSION MONEY, AND OTHER ALIMONY-CHARGED BENEFITS TO THE COUNTRY ' S FINANCES.

Article 1

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

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

Article 3 of this Government Regulation shall begin apply to the date of the invitation and first applied for Tax Year 1984. In order for everyone to know, order this Government Regulation invitation with its placement in the Gazette of the Republic of Indonesia.

Set in Jakarta on 6 September 1985

PRESIDENT OF THE REPUBLIC OF INDONESIA

SUHARTO

promulred in Jakarta on September 6, 1985

MENTERI/SECRETARY OF STATE OF THE REPUBLIC OF INDONESIA

SUDHARMONO, S.H.

SHEET OF STATE OF 1985 NUMBER 56 ADDITIONAL STATE SHEET NUMBER 3306

EXPLANATION OF

REGULATION OF THE GOVERNMENT OF INDONESIA NUMBER 40 YEAR 1985

ON INCOME TAX BENEFITS FOR STATE OFFICIALS, CIVIL SERVANTS, MEMBERS OF THE ARMED FORCES

REPUBLIC OF INDONESIA, AND THE RETIREES ON SALARY, HONORARIUM, PENSION MONEY, AND OTHER ALLOWANCES CHARGED

TO THE GENERAL STATE TREASURY Article 21 of the Law No. 7 of 1983 on Income Tax oblivion the Government's Bendaharawan who pays salaries, wages, honorarium, fixed benefits, and other payers by name anything in connection with the work or office charged to the State Treasury, to cut the PPH Article 21 of the Income Tax Act of 1984. 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 pensions of income in connection with the work or office of the funds are charged to the State Finance.

SECTION BY SECTION

section 1

This income tax allowance is granted only to the Official State, Civil Servants, members of the Armed Forces of the Republic of Indonesia, and the pensis who are based on the provisions in the Income Tax Act 1984 on payroll, honorarium, pension money, and alimony- Other allowances are either in the currency of the rupiah or in the foreign currency received or be obtained in connection with the work or post that funds are charged to the State Finance including Regional Finance and Corporate Corporate Savings and Insurance Company (PERSERO TASPEN).

The amount of allowance is the amount of Income Tax in debt and must be paid for the salary, honorarium, pension money, and allowances.

Section 2

The Finance Minister is authorized to set out how to recount the bulk of the Income Tax allowance and other matters relating to the implementation of this Government Regulation.

Article 3

Is fairly clear.