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Depreciation in the Plantation, Forestry, and Farm Bussiness


Depreciation in the Plantation, Forestry, and Farm Bussiness Regulation of the Minister of Finance Number 126/PMK.011/2012 emphasized the certain asset depreciation in the plantation, forestry, and livestock. Which are: • 1.In forestry sector, including forestry plants; grouped into groups of IV (20 year benefit period) • 2.In plantation crops, including herbs and refreshments; grouped in group IV (20 year benefit period). • 3.In farm businesses, including livestock, including cattle stud, grouped in group II (8 year benefit period). Depreciation begins in commercial production period. It meant, depreciation begin in the month in which the sales begin. Exempted from the provisions above, Taxpayers can obtain the determination of the economics periods of the asset accordance with the actual benefits. By submitting an application to the DGT. As a note: • 1. Over tangible asset as referred to above, which has been depreciated by the Minister of Finance No. 249/PMK.03/2008, the following provisions apply: o 1.a. Against the rest of the fiscal book value of tangible assets by the Minister of Finance No. 249/PMK.03/2008, which have remaining useful life based regulation is more than 1 (one) year, are depreciated based on the remaining useful life in accordance with this regulation. o 1.b. Against the rest of the fiscal book value of tangible assets by the Minister of Finance No. 249/PMK.03/2008, which have remaining benefits based regulation is less or equal to 1 (one) year, depreciated in the book as well as the enactment of this Minister. • 2. Against tangible property as set forth in Regulation of the Minister of Finance No. 249/PMK.03/2008 not qualify as tangible property by this regulation, the cost of tangible property development is capitalized during the development period and is part of the cost of goods sold when the result of the intangible assets sale, all intangible assets have been depreciated by the Minister of Finance No. 249/PMK.03/2008. This regulation comes into force on the date of promulgation.

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