Tax Management Analysis of Coal Companies Post Amendment to Work Agreement for Coal Mining Enterprises 3rd Generation: A Case Study

This research analyzed implications of the Indonesian government’s 3rd Generation CCoW Amendment to the Company’s Effective Tax Rate and Tax Management, which was a mandate of Law No. 4, 2009, on Mineral and Coal Mining (the Minerba Law), which stipulated that the provisions in CCoW mining concessions must be amended accordingly. One main change was increased state revenues in that taxation provisions changed from the 1994 law to the prevailing law. This research discusses tax management applied by a company after the tax regime change that covers tax administration, planning, and strategy if there is a tax audit. The research used a case study approach with a qualitative method. The unit of analysis was a CCoW Generation 3 coal company located in East and Central Kalimantan. Results revealed that the CCoW amendment increased the effective tax rate tax management; therefore, efficiency is needed for tax planning of corporate income tax, for instance, in submission of Specific Areas, supervision of Debt to Equity Ratio (DER), and so on. In addition to tax planning, companies should also apply administrative compliance according to prevailing provisions to avoid any interest or penalties. This research can also serve as an evaluation of the CCoW amendment policy undertaken by the Indonesian central government. Keywords—tax management, tax planning, effective tax rate, coal, ccow generation 3, amendment