USKP C PRIODE JUNI 2012

PERPAJAKAN INTERNASIONAL
1. A Corp, a company established in Singapore, manufactures pressing and boiler machine for
ASEAN market. In January 2012, A Corp. entered a contract with PT B in
Jakarta to provide machines. Total contract is IDR 3 billion, which consists as follows:
Pressing and boiler machines: IDR 1.8 billion
Installation service: 300 million
Training service: 500 million
Maintenance service: 400 million
All installation, training andmaintenance service will be performed directly by employee
of A Corp. Theinstallation will be performed in Indonesia for 40 days. Training will be
performedinSingapore for 5 days in Singaporeand 15 days inIndonesia. The
maintenance will be performed by 2 days for each month for the first 6 months.
Question:Explaintax implication according to Indonesia Income Tax Law or
taxtreaty.
1. PT Maju entered a contract on March 2012 with BethaCorporation,anUScompany, on
rental of heavy dump truck. Total contract is IDR 3 billion for one year.
Question:Explaintaximplication according to Indonesia Income Tax Law or
taxtreaty.
2. Mr. Holande, a professional that holds US citizen status, provides construction service in
Jakarta for 185 days during 2011. In the respected year, Mr. Holande stays in a rented
guest house that is provided by customer. His family stays in New York and come to
Indonesia for vacation (1 week).
Question:What is the tax resident status of Mr. Holande?

3. A Corp, a US based company, decides to sell its product, GPS equipment, to Jakarta
through a broker, PT Makelar. The broker has a good reputation and currently has a 30%
of total market share in Indonesia. All contracts will be between customer and A Corp.
PTMakelar will receive commission from the sales.
Question:Explain tax implication on the above business planning according to
Indonesia Income Tax Law and tax treaty.
4. Merry an American Singer just performed such an amazing performance in Sentul
InternationalConvention Center. Assume that, the producer paid Merry management USD
4,000,000 basic payment out of USD 500,000 reimbursement for the personal expenses of
Merry herself and also by the management on behalf of Merry. How much tax is liable to
Merry?
5. PT Bangun Kimia (BK), incorporated company based in Cikarang, requires a new process
for bonding plastic components that it produces. BK call for assistance to the Atlantic
Laboratories (AL), USA, which develops various industrial processes. AL offered an
existing industrial process (called Process A) that would meet most of BKs requirements
and that would be prepared to make the technology available to BK for a fee of 10 cents
for every unit produced using the process, by a normal licensing requirements, so that the
technology remains the property of AL, so that the process should be kept secret by BK.
On the other hand, PT BangunKimia came up with other alternative that Atlantic
Laboratories is prepared to develop a new process (called Process B) thatwouldmeetallof
BKs requirements. For this purpose, AL would make Process Bavailable to BK foreither:
1. A lump sum payment of $1 million, where BK becomes the owner of the new process;
2. A fee of $250,000, where AL retains ownership of the process and BK has the right to
use of the process for 10 years;
3. A fee of 20 cents for every unit produced by BK using the process B, where AL
retains the ownership of the process and BK has the right to use the process for
10 years
According to Tax Treaty between IndonesiaandUSA, pleaseexplainbriefly howthe treaty
would be applied if payments made from Indonesia to USA under each or the
fourproposals below:
2

1. Process A; fee 10 cents for every unit produced;

2. Process B; lump sum payment of $1 million, BK becomes the owner of the new
process;
3. Process B; fee of $250,000, AL retains the ownership of the new process and BK has
the right to use the process for 10 years;
4. Process B; fee of 20 cents for every unit produced, AL retains the ownership of the
new process and BK has the right to use the process for 10 years.

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