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:

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  • 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.


Read a February 2016 report prepared by the KPMG member firm in Indonesia: Fixed Assets Revaluation Tax 


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

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