Lampiran II
SE-42/PJ.23/1984

P.T. UNIROYAL SUMATRA PLANTATIONS

KISARAN SUMATRA E.C

8 NOVEMBER 1984

Drs. Sarwono
Direktur Pengusutan dan Pengembangan Wilayah
Direktorat Jenderal Pajak
Jl. Gatot Subroto No.4 Jakarta

Dear Drs, Sarwono

            It was a pleasure to meet you the other day at the Corporate Tax conferance and I would like to thank you very much for your kind offer of help and guidance with the questions to which we have so far been unable to obtain replies.

I attach a list of thease and any or all which you  can answer will be of considerable assintance. As thease refer to payroll matters (and the end of the year is rapidly approaching) may I request as rapid an answer and possible so that we may make our returns to the local tax office in time.   

            Thank you again.

Yours sincerely,
P.T. UNIRDYAL SUMATRA PLANTATIONS

D.H. Griffiths

Manager International Control

Lampiran II

PT UNIROYAL SUMATRA PLANTATIONS

KISARAN SUMATRA E.C

1.	General
	a.	We undestand that it is the intention of the Tax  Authorities to encourage employers to give employees additional taxable play and allowance in lieu of fringe benefite. Is this correct.
	b.	If additional taxable pay is given in lieu of  a fringe benefite are we correct in assuming that their will be no obligation to  add this to profit before assessing Corporate Tax.Eg. if we inerease an employees pay by sufficient to pay his house rental then deduct rental from his after tax pay no adjustment to net profit will be required provided the rents paid cover total housing costs.
2.	Rice
	a.	Do the tax authorities  agree to the value of rice distributed being  added into the gross wages of an employee and then a deduction made form his after tax pay.
	b.	If handled this way will the cost of rice be an allowable deduction for Corporate Tax purposes.
	c.	Does it matter to the finance Department who supplies the rice to the worker. Is there any difference if it  is dose direct by the  employer through a co-operative or by a contractor.
3.	Housing
	a.	We understand that the 'rental' charged to employees wost cover the costs of depreciation upkeep and services aupplied to the house.
	b.	We have appllied for remote area for our plantation but had no reply. What are the definections of remote areas.
	c.	Even if not a remote area some of our employees must live in isol;ated parts of the estate to supervise their jobs. special consideration for this.
4.	Hospital
	a.	We run our hospital and we propose to cover hospital costs on an 'insurance' basis ie. each employee will receive an increase in his taxabel pay and will make a monthly contribution for himself and each dependant to cover the cost of the hospital services from his taxed income. If he is sick he will not be charged but the hospital will carry the cost out of the total contributions received is this acceptable to the tax authorities.
	b.	We have heard that if an employee is treated by an outside hospital and the Company pays the outside hospital direct that this does not have to be included as income of the employee. is this currect
5.	Cars
	a.	As an estate we have several kinds of  vehicles including landrovers, DAihatsue ect. There are used mainly by estate personal who live away from the two main emplacements. Depending on their distance from the town they are allowed up to approx. 160 km per week for socila and shopping trips.
		Are we correct in  assuming that this does not count as private mileage ?
	b.	We have other staff who live on the two main emplacement who are allowed  to use pool cars (not sedans0 once or twice a week for shopping and social purposes up to 70 kg,  per week Would this be treated as private mileage ?
	c.	Are we correct is assuming that for sedans the only charge  allowble for tax will be that proportion of the total costs which applies to business kilometters. Eg, if its sedan travels 2000 km in one month  of which 1200 is or business then
		1200	x	total expans will be allowed.
		2000