Taxation, Legal and Financial Aspects of PSC
About the Course:
This training program on Taxation, Legal, and Financial Aspects of Production Sharing Contracts (PSC) is designed to provide participants with a thorough understanding of the intricate tax regulations and legal frameworks that govern PSCs in Indonesia. As a primary model for oil and gas exploration and production, PSCs involve complex financial structures, cost recovery mechanisms, and tax obligations that necessitate accurate application and compliance.
The training will cover the latest tax policies, fiscal terms, and contractual obligations, ensuring that participants are well-informed about key provisions and can effectively navigate the changing regulatory environment. A significant focus of this program is on understanding the audit implementation process and the management of tax applications throughout the lifecycle of a PSC. Participants will learn best practices for tax reporting, dispute resolution, and audit readiness, which are essential for maintaining operational transparency and minimizing financial risks. By aligning legal and financial strategies with current regulations, this training aims to enhance participants’ capabilities in managing PSCs effectively, protecting company interests, and ensuring compliance with Indonesian tax and legal standards.
Course Objectives:
- Understand the investment considerations in oil and gas under PSC.
- Recognize the financial and economic aspects of production sharing.
- Learn various oil and gas accounting methods.
- Comprehend the fiscal terms and sharing mechanisms.
- Understand PSC reporting and budgeting aspects.
- Identify tax obligations under PSC.
- Analyze case studies of PSC tax audits.
- Understand local taxes and levies.
- Evaluate the economics of a PSC project.
Who Should Attend:
- Accounting Staff
- Consultants
- Lawyers
- Economists
- Financial Analysts and Planners
- Engineering Managers
- Company Executives
- Exploration Managers
- Tax Specialists and Auditors
Course Content:
- Update Issues:
- Recent developments in Oil & Gas Law
- Current taxation challenges
- Investment Considerations in PSC Petroleum Operations:
- Fiscal terms, incentive packages, and their implications
- Economic aspects of field development
- Project economic analysis
- Financial & Economic Aspects of PSC:
- Fundamental concepts and philosophy
- Overview of petroleum operations
- Insurance considerations in the PSC environment
- Current issues affecting the sector
- Oil and Gas Accounting:
- Overview of oil and gas accounting systems
- Successful effort vs. full costing methods
- PSC-specific accounting systems
- PSC Financial Application:
- Application of fiscal terms
- Sharing mechanisms and their implementation
- Budgeting and reporting aspects
- Financial management within PSCs
- Taxation:
- Tax obligations under PSC
- Regulations and agreements related to oil and gas taxation
- Withholding taxes in the oil and gas sector
- Local taxes and levies
- Case studies on PSC tax audits
About the Trainer:
Dr. A Rinto Pudyantoro, MM, Ak, CA Dr. Rinto has over 30 years of experience as a practitioner in the upstream oil and gas sector. He began his career at VICO Indonesia, where he worked for nearly 11 years, followed by 4 years at BP Indonesia, and 16 years at BP Migas and SKK Migas.
As of May 2022, Dr. Rinto served as the Head of the Program and Communication Division at SKK Migas, previously holding the position of Head of the SKK Migas Representative Office for Papua and Maluku. He has also worked in oil and gas taxation at SKK Migas, in addition to managing revenue accounting and the state budget.
Dr. Rinto is the author of several books on upstream oil and gas, including “A to Z Bisnis Hulu Migas,” “Dialog Tanya Jawab Migas,” “Projek Hulu Migas-PetroEkonomi,” and his latest work, “Bisnis Migas – Menakar Persoalan.” He has published over 30 opinion pieces on oil and gas and upstream business in various print and online media.