On 20 July 2020, the Minister of Finance (“MoF”) issued a new Regulation Number 90/PMK.03/2020 (“PMK-90”) regarding Aid or Donation, as well as Granted Asset Exempted as Objects of Income Tax.

The main points of PMK-90 are as follows:

1. For Grantors, profits due to the transfer of assets in the form of grants, aids, or donations constitute an object of income tax,  except if transferred to:
   • A blood relative in a direct line of one degree, i.e. a biological parent or biological child.
   • A Religious Institution which does not seek profit through its primary activities of managing places of worship and/or carrying out activities in the field of religion, including religious institutions established or legalized by the Government as intended in the Government Regulation regarding Aid or Donation, including Zakat or Compulsory Religious Donations.
   • An Educational Institution which does not seek profit through its primary activity of providing education.
   • Social agencies, including foundations which do not seek profit.
   • Cooperatives as regulated in the provisions of laws and regulations in the field of cooperatives in Indonesia.
   • An Individual who runs a micro or small enterprise who owns net assets not more than Rp500,000,000 and generates annual turnover up to Rp2,500,000,000.
   • Other parties that do not have a relationship with the Grantor through business, occupation, ownership, or control.
2. The profit as intended in the previous point shall be the difference between the market price and the remaining fiscal book value or the acquisition value.
3. For Grantees, aid/donation and granted assets (in the form money or goods) are exempted as Objects of Income Tax, as long as there is no relationship through business, occupation, ownership, or control with the Grantors. In the event that there is a relationship of ownership or control, the aid/donation and granted assets received shall still be exempted as an object of income tax as long as the Grantee is a religious institution, educational Institution, or social Institution, including foundations.
4. The aid/donation and granted assets in the form of goods shall be recorded by the Grantee with an acquisition value of the remaining amount of fiscal book value or Another value.

PMK-90 is effective since 21 July 2020.