The Ministry of Finance (MoF) issued Regulation No. 191/PMK.010/2015 (PMK-191) on the revaluation of fixed assets in order to assist taxpayers when the thin capitalization rules are implemented).This regulation is applicable to those companies that submit applications for fixed asset revaluations (FAR) to the Director-General of Taxation (DGT) during the period 20 October 2015 until 31 December 2016. depreciation of the revalued assets will be based on the approved value while the useful life of the assets will be adjusted to the full useful life of the different groups of assets as prescribed in MoF Regulation 96/PMK.03/2009 of 15 May 2009, after the revaluation starting from the month in which the revaluation was made.

The difference between the new market value and the previous book value resulting from the revaluation is a capital gain that is subject to tax. Under PMK-191, final income tax will be imposed on the capital gain at different rates depending on when the companies submit the FAR application like 3% for submissions between 20 October 2015 and 31 December 2015; 4% for submissions between 1 January 2016 and 30 June 2016; and 6% for submissions between 1 July 2016 and 31 December 2016.