"Government Regulation No. 27 of 2017 on Refundable Operating Costs and the Treatment of Income Tax in Oil and Gas Business Sector is the governments response to complaints on tax rules which is mentioned in Regulation No. 79 of 2010," Secretary General of Oil and Gas at the Ministry, Susyanto, said here on Wednesday.
Some of the revised points on the new regulation include incentives for upstream oil and gas businesses, the dynamic amount of profit sharing, and exploitation cost.
The revisions also include refundable and non-refundable operating expenses, abolition for cost sharing tax, and changes from field basis to block basis operational systems.
The new regulation also states the abolition of import duties on goods used for operations and value added tax (vat) for luxury goods.(*)