Indonesia: “Fixed asset revaluation tax” incentive | KPMG | GLOBAL

Indonesia: Additional guidance for “fixed asset revaluation tax” incentive

Indonesia: “Fixed asset revaluation tax” incentive

A regulation issued by Indonesia’s Ministry of Finance provides a tax incentive—the “fixed asset revaluation” tax incentive—that is available until 31 December 2016. Additional guidance has been issued concerning the “fixed asset revaluation tax” incentive in Indonesia. The new guidance:


Related content

  • Describes the types of asses that can be revalued
  • Provides rules if or when revalued assets can be transferred or sold, and generally relaxes the requirements on transfers or sales or revalued assets without penalties 
  • Addresses the accounting and financial statement implications of asset revaluations, and allows for revaluation to be included in notes to financial statements
  • Provides rules for revalued assets of state-owned enterprises

The new measures are retroactively effective, as of 15 October 2015.



Indonesia’s Ministry of Finance issued regulation (No. PMK-191/2015 (15 October 2015)) to allow individuals and companies residing in Indonesia, including certain permanent establishments, to apply for a new fixed asset revaluation tax incentive. The increase in fixed assets resulting from the revaluation (i.e., the difference between the new asset value and the tax book value before revaluation) then would be subject to reduced rates of “final income tax” ranging from:

  • 3% for applications filed before 31 December 2015
  • 4% for applications filed between 1 January 2016 and 30 June 2016
  • 6% for applications filed between 1 July 2016 and 31 December 2016

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal