The upstream oil and gas sector operates under unique fiscal and contractual frameworks that significantly differ from general corporate taxation. Production Sharing Contracts (PSCs), Cost Recovery vs. Gross Split schemes, government take mechanisms, VAT, regional taxes, and tax compliance obligations all shape the financial landscape of the industry. Understanding the regulatory framework, tax audit procedures, and their implications on project economics is crucial for companies to ensure compliance, optimize fiscal efficiency, and minimize risks in dealings with government authorities. Objectives
• After completing this training, participants will be able to:
• Understand the fiscal framework governing upstream oil and gas taxation in Indonesia.
• Distinguish between cost recovery and gross split PSC taxation mechanisms.
• Identify key tax components (income tax, VAT, import duties, regional taxes, etc.) in the upstream industry.
• Apply correct reporting and documentation procedures for compliance.
• Recognize potential audit issues and how to mitigate tax disputes with regulators.