The Tax Office issued Regulation PER-16/PJ/2011 dated 6 June 2011 which provides the administrative requirements of the exemption from branch profits tax as provided by Regulation No. 14/PMK.03/2011. The Regulation states that effective 6 June 2011, a branch must prepare and submit a written reinvestment notification in order to claim the exemption. The written notification must contain amongst others, information such as the preferred form of reinvestment, its realization, and the start of commercial production. Failure to meet these administrative requirements will result in the imposition of the 20% branch profits tax (or reduced treaty rate).