In late December 2024, the government issued new global minimum tax imposition regulations. Through the Minister of Finance Regulation (Peraturan Menteri Keuangan / PMK) Number 136 of 2024 regarding the Imposition of Global Minimum Tax Under International Agreements, the government regulates that a minimum tax will be levied on multinational companies operating in Indonesia with certain criteria.
This move aligns with international agreements, particularly Pillar 2 Amount B of the OECD's framework (OECD, 2021). As of October 31, 2021, the OECD reported that 135 tax jurisdictions had joined the Global Anti-Base Erosion Rules (GloBE). The GloBE aims to ensure that large multinational companies pay a minimum level of tax in the jurisdictions where they operate.
Although the agreement was reached in 2021, Indonesia only finalized its provisions on the global minimum tax at the end of 2024. The new regulations, consisting of 16 Chapters and 74 Articles, are detailed and comprehensive. Below is an overview of the PMK 136/2024 structure:
No. | Chapter | Article |
1 | Chapter I: General Provisions | Article 1 |
2 | Chapter II: Scope | Articles 2 – 3 |
3 | Chapter III: Global Anti-Base Erosion Rules (GloBE) Provisions
| Articles 4 – 13 |
4 | Chapter IV: Top-up Tax Under the Income Inclusion Rule (IIR)
| Articles 14 – 16 |
5 | Chapter V: Top-up Tax Under the Under-Taxed Payments Rule (UTPR)
| Articles 17 – 18 |
6 | Chapter VI: Computation of GloBE Income or Loss
| Articles 19 – 29 |
7 | Chapter VII: Computation of Adjusted Covered Taxes
| Articles 30 – 39 |
8 | Chapter VIII: Corporate Restructurings and Holding Structures
| Articles 40 – 44 |
9 | Chapter IX: Tax Neutrality and Distribution Regimes
| Articles 45 – 50 |
10 | Chapter X: Currency Translation | Article 51 |
11 | Chapter XI: Top-up Tax Under Domestic Minimum Top-up Tax (DMTT) | Articles 52 – 53 |
12 | Chapter XII: Safe Harbors
| Articles 54 – 64 |
13 | Chapter XIII: Administration | Articles 65 – 66 |
14 | Chapter XIV: Initial Period Provisions of GloBE Implementation
| Articles 67 – 70 |
15 | Chapter XV: Delegation of Authority | Article 71 |
16 | Chapter XVI: Concluding Provisions | Article 72 |
This article provides a brief overview of PMK Number 136 of 2024. The next article will delve into the specific provisions outlined in PMK 136/2024. If you have any questions, Ideatax is here to assist.
Relevant Provisions:
- Law of the Republic of Indonesia Number 7 of 1983 regarding General Provisions and Tax Procedures as amended by Law of the Republic of Indonesia Number 7 of 2021 regarding Harmonization of Tax Regulations.
- Government Regulation Number 55 of 2022 regarding Adjustment of Income Tax Regulations.
PMK Number 136 of 2024 regarding the Imposition of Global Minimum Tax Under International Agreements.
References
OECD2021Tax Challenges Arising from Digitalisation of the Economy – Global Anti-Base Erosion Model Rules (Pillar Two)Paris OECD