Precision Oil & Gas Tax Compliance
PSC tax planning, cost recovery audit, and upstream oil & gas fiscal incentive optimization
Compliance Warning
Oil & gas is a high-tax-scrutiny sector. Ensure all income tax, VAT, and land tax obligations are reported on time.
Tax Rate
22%
PPH TARIF-UMUM
Risk Level
High
Typical Turnover
IDR 500 Billion - 50 Trillion per year
Tax Challenges
PSC Tax Regime Complexity
Each PSC generation has different fiscal provisions: 44% corporate tax (old PSC) vs 22% (gross split), different DMO, FTP, and investment credits.
Oil & Gas VAT and Refunds
Significant input VAT on operating costs and a refund process requiring strict documentation.
Branch Profit Tax and Transfer Pricing
Foreign contractors are subject to 20% branch profit tax after corporate tax, plus transfer pricing documentation obligations.
Our Tax Solutions
PSC Tax Compliance & Planning
Managing tax obligations according to the PSC regime including tax entitlement calculation and contractor tax obligations.
- 100% tax compliance
- Smooth tax audits
- Fiscal incentives utilized
VAT Recovery Management
Tracking system for refundable input VAT with complete documentation to accelerate refunds.
- Faster refunds
- Optimal cash flow
- Audit-ready documentation
International Tax Structuring
Optimizing international tax structure including tax treaty benefits, branch profit tax, and transfer pricing compliance.
- Efficient BPT
- Treaty benefits
- TP documentation compliant
Related Tax Regulations
UU 22/2001
Oil and Gas Law
Legal basis for upstream and downstream oil & gas activities including PSC fiscal regime
PP 79/2010
Oil & Gas Operating Costs and Tax
Provisions on recoverable operating costs and income tax treatment in upstream oil & gas
PP 27/2017
Oil & Gas Fiscal Regime
Changes to PSC fiscal regime including gross split and tax incentives
Need a Tax Consultant for Oil Mining Tax?
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Free Consultation via WhatsAppOil Mining Tax Consulting Services Across Indonesia
We support clients in major Indonesian cities. Find a location-specific service page for your area.
Bali
Banten
Daerah Istimewa Yogyakarta
Jawa Tengah
Jawa Timur
Kalimantan Barat
Kalimantan Selatan
Kalimantan Timur
Kepulauan Riau
Riau
Sulawesi Selatan
Sulawesi Tengah
Sulawesi Tenggara
Sulawesi Utara
Sumatera Utara
Sumatra Selatan
Frequently Asked Questions
What is the corporate tax rate for oil & gas companies?
For older PSC generations (pre-2010), corporate tax is 44% including 20% government share credited. For gross split PSCs, the general rate of 22% applies. Cost recovery PSCs have special provisions: tax borne by government on certain contracts. Each contract must be checked individually.
Is upstream oil & gas subject to VAT?
Upstream oil & gas is subject to VAT, but there are facilities for VAT not collected on imports and certain goods/services per applicable regulations. Input VAT related to facility-receiving activities may be refunded.
What is branch profit tax and how is it calculated?
BPT is 20% tax on taxable income of a PE after deducting corporate tax (effective 20% × 78% = 15.6% of net profit). BPT may be reduced or eliminated under tax treaties if the head office is in a treaty country. PEs must maintain TP documentation.
Is Arunika Consulting officially licensed as a tax consultant?
Yes. We are registered tax consultants and support clients with compliant, professional tax advisory and representation.
What should I do if I receive an SP2DK letter or tax audit notice?
Contact us early. We help analyze the risk, prepare supporting documents, draft the response, and assist discussions with the tax office.
How much tax saving can tax planning deliver?
It depends on your structure and transactions. We identify legal efficiencies, incentives, and reporting improvements without crossing into tax evasion.
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