New Provisions on Regional Tax

In a bid to increase regional-tax revenues, the government has issued Government Regulation No. 55 of 2016 on General Provisions and Procedures for the Collection of Regional Tax (“Regulation 55/2016”). [1] Regulation 55/2016 basically sets out a set of guidelines for regional governments (at the provincial and city/regency levels) as regards the collection of regional tax from taxpayers. At the first approximation, these guidelines address the following matters: