On September 15 2023, the Minister of Finance stipulated MoF Regulation No. 94 of Year 2023 containing several new provisions as amendments to MoF Regulation Number 34/PMK.03/2018 including the following:

• “Profit sharing” is Non-Tax State Revenue for cooperation contracts in the upstream oil and gas business sector;
• Oil and Gas Income Tax is part of tax state revenue owed by the Contractor, consisting of income tax on revenue earned under Production Sharing Contracts; and/or income tax on taxable income for Production Sharing Contracts after deducting income tax on income under the Production Sharing Contract structure with calculations in accordance with the conditions of the Cooperation Contract for upstream Oil and Gas business activities;
• The Final Financial Quarterly Report (FQR) for the Fourth Quarter is recognized and used by the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) or the Aceh Oil and Gas Management Agency (BPMA) to complete the calculation of profit sharing and adjustments are made to include information on all changes in the contractor’s rights and obligations on a certain date after the financial year of the termination of the contract from the completion of the work area, which is recognized and used by SKK Migas or BPMA; and
• Contractors report Income Tax obligations. The amount of Oil and Gas income tax in the Annual Income Tax Return must be in accordance with the amount of Oil and Gas income tax based on the final FQR for the Fourth Quarter, the final FQR for the Last Fiscal Year, or the Final Settlement Rights and Obligation FQR.

With regard to a joint audit finding, if the contractor agrees with the audit findings after the current year, the contractor shall adjust the profit sharing of oil and gas revenues or pay the non-tax state revenue to the oil and gas account and pay the oil and gas income tax payable to the state treasury account as a payment for the current year’s oil and gas income tax as regulated in this MoF Regulation. Furthermore, if there is an underpayment of Tax, the Contractor is required to pay it before submitting the Annual Income Tax Return. Otherwise, if there is a payment of Oil and Gas income tax greater than what should have been payable in the Final FQR for the previous fiscal year, the overpayment of Oil and Gas income tax will be refunded based on the appropriate amount.

MoF-94/2023 came into force on the date of its promulgation, September 18, 2023.