The Ministry of Finance Regulation Number 79 of 2023 on Procedures for Valuation for Tax Purposes is a regulation that regulates the procedures for determining the value of objects of taxation in Indonesia. The regulation was issued on August 22, 2023, and entered into force on September 23, 2023.
The regulation defines valuation as the process of determining the value of an object of taxation. The value of an object of taxation is important for tax purposes, such as determining the amount of tax payable.
The regulation applies to all objects of taxation, including:
- Land and buildings
- Motor vehicles
- Machinery and equipment
- Inventory
- Intellectual property
The regulation sets out the following procedures for valuation:
- The Director General of Taxation may conduct a valuation to determine the value of an object of taxation.
- The valuation must be carried out by a qualified appraiser.
- The valuation must be based on the following factors:
- The market value of the object of taxation
- The cost of replacing the object of taxation
- The income generated by the object of taxation
The regulation also sets out the following rights and obligations of taxpayers and appraisers:
- Taxpayers have the right to object to the valuation results.
- Appraisers have the obligation to conduct the valuation in accordance with the regulation.
The regulation is a significant development in the Indonesian tax system. It provides a clear and comprehensive framework for the valuation of objects of taxation. The regulation is expected to improve the accuracy and fairness of tax assessments.
Explanation
The regulation is important for several reasons. First, it provides a clear and comprehensive framework for the valuation of objects of taxation. This will help to ensure that valuations are conducted in a consistent and transparent manner. Second, the regulation is expected to improve the accuracy and fairness of tax assessments. By ensuring that valuations are based on sound principles, the regulation will help to ensure that taxpayers are paying the correct amount of tax. Third, the regulation is expected to promote efficiency in the tax administration. By providing a clear and concise framework for valuation, the regulation will help to reduce the time and resources required to conduct valuations.
The regulation is a positive development for the Indonesian tax system. It is expected to improve the accuracy, fairness, and efficiency of tax assessments.