Non-Taxable Object! Why Port Services from PT Pelindo Successfully Overturned PT ELI’s Tax Correction at the Tax Court?

Tax Lawsuit Analysis: PT ELI and the Jurisdictional Limits of Article 23 on Port Services

The dispute over the classification of withholding tax objects under Income Tax Article 23 has resurfaced in the case of PT ELI against the Director General of Taxes. The core conflict centers on the interpretation of "other services" as regulated under PMK 141/PMK.03/2015, where the Respondent (DGT) corrected the payment for port services to PT Pelabuhan Indonesia II (Persero), claiming it was a taxable object subject to a 2% withholding tax. The Respondent argued that the absence of a specific exemption in the regulation meant all port services should be subject to withholding.

The Conflict: Shipping Law vs. Unilateral PMK Interpretation

Conversely, the Petitioner (PT ELI) firmly refuted this argument by referring to Law Number 17 of 2008 concerning Shipping. The Petitioner argued that PT Pelindo acts as a Port Business Entity (BUP) performing the functions of a port authority/organizer. Substantively, port services provided by port authorities are not listed in either the negative list or the 60 specific types of "other services" in PMK 141, thus lacking a legal basis as an object of Income Tax Article 23.

Judicial Consideration: Supremacy of the Principle of Legality

The Tax Court Judges, in their resolution, concurred with the Petitioner. The Panel emphasized the principle of legality in tax law, stating that tax imposition must be based on clear provisions. Since port services provided by port authorities/BUP under government assignment are not listed in PMK 141/PMK.03/2015, the Respondent's correction was deemed to have no strong juridical basis. This decision confirms that not all payments for services to third parties can be categorized as "other services" without specific regulatory alignment.

A Comprehensive Analysis and the Tax Court Decision on This Dispute Are Available Here