Investment, Reporting, Auditing and Taxation in Agriculture Industry
01. AGRICULTURAL ACCOUNTING
PSAK 69 stipulates that biological assets or agricultural products are recognized when they meet several of the same criteria as the criteria for asset recognition.
02. AUDIT OF AGRICULTURE COMPANIES
When conducting audit of agricultural companies, auditors are expected to exercise a high degree of professional scepticism, especially on the audit of its biological asstes – an area where subjectivity, judgments and estimates exist.
03. TAXATION OIL PALM PLANTATIONS
Taxes imposed on oil palm plantations are Land and Building Tax (PBB), Value Added Tax (VAT), Corporate Income Tax (PPh), International Trade Tax (PPh Article 22 and Export Levy), Dividends and Regional Levy Tax for any activities related to oil palm plantantions.
04. REGULATORY ISSUES ON PALM OL PLANTATION IN INDONESIA
Plantations are among the largest foreign exchange earners of state revenues in the Agricultural Sector. The Minister of Investment/Investment Coordinating Board (BKPM) noted that the majority of foreign investment in the agricultural sector is still in the form of oil palm plantations.