INCOME TAX ON SHIPPING / FOREIGN AIR

Tax on Shipping / Aviation Abroad

1.       Taxpayers shipping companies and / or flight domiciled
        abroad who do business through permanent   establishments
        in Indonesia.

2.       Distribution of gross Taxpayer shipping companies and / or
       foreign airlines are all value replacement or compensation in


the form of money or money's worth from the transport of people and /
or goods are loaded from one port to another port in Indonesia and / or from ports in Indonesia to Ports abroad. Thereby excluding consideration or remuneration derived by a shipping company and / or the foreign airlines from transporting people and / or goods from overseas ports to ports in Indonesia.

3.       The amount Norma Net Income amounted to 6% of gross income. The amount of income tax
        that must be paid taxpayer shipping companies and / or overseas flight amounted to 2.64 of
        gross income and shall be final.

4.      Repayment or payment of income tax:
a. In the case of income earned under the agreement / charter, then the party who pays or

    charter party is required to withhold income tax payable at the time of payment or  

    remuneration payable / replacement value;
b. In the case of income earned in addition based on the charter agreement, the taxpayer  

    Shipping Company and / or Flight abroad must deposit the income tax payable to the bank or

    Post Office not later than the 15th of the month following the month received or earned

    income and reported deposit made to the Tax Office not later than the 20th of the following

    month.