The Agreement on Reciprocal Trade and Its Implications
In February 2026, the President of the Republic of Indonesia paid an official visit to the United States to attend a series of strategic meetings. A major item on the agenda was economic cooperation, culminating in the signing of the Agreement on Rec...
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Beneficial Ownership in Limited Liability Company Regulations
Beneficial ownership has become a cornerstone of modern corporate governance, indicating a growing emphasis on transparency regarding who ultimately controls and benefits from a legal entity. In Indonesia, this principle is reinforced by th...
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Tax Implications in the Establishment, Amendment, and Dissolution of Limited Liability Companies
Since its enactment in 2007, the legal framework governing limited liability companies has been amended several times. One of the most recent changes was introduced through Law of the Republic of Indonesia Number 6 of 2023, which stipulates the Gover...
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Criminal Liability in VAT Compliance
In January 2026, the Minister of Finance conducted a surprise inspection of two steel companies located in the Millennium Industrial Estate, Cikupa, Tangerang, Banten. During the inspection, authorities identified indications that several Chinese-own...
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The 2026 Tax Outlook
The government has formally enacted the 2026 state budget through Law of the Republic of Indonesia Number 17 of 2025, which was jointly approved by the House of Representatives. Under the 2026 state budget law, total state revenue is set at IDR ...
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PMK 119 of 2024: Updates to Preliminary Tax Refund Procedures
On December 27, 2024, the Minister of Finance issued Regulation Number 119 of 2024 (PMK-119), updating the previous Regulation Number 39/PMK.03/2018 (PMK-39). PMK-119 aims to modernize the tax system and improve taxpayer protections by revising proce...
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Understanding the Permanent Establishment Concept and Effective Tax Rate Determination in GloBE
In our previous article, we explored the scope of the Global Anti-Base Erosion Model Rules (GloBE) as outlined in Minister of Finance Regulation (Peraturan Menteri Keuangan / PMK) Number 136 of 2024 on the imposition of a global minimum tax under int...
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PMK 136: Implementing Global Minimum Tax Rules Under International Agreements
On December 31, 2024, the Ministry of Finance of the Republic of Indonesia issued a new regulation regarding the global minimum tax imposition based on international agreements.The Global Minimum Tax (“GloBE”) is a top-up tax developed by the OECD/G2...
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Exploring the GloBE Rules in Indonesian Domestic Provisions
Technological advancements have transformed the global economic landscape. Today, entrepreneurs can conduct business anywhere and anytime, without the constraints of space and time. Companies established abroad can operate in Indonesia without local ...
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E-Invoicing Only for PKP with Over 10,000 Monthly Invoices
The Directorate General of Taxes (DGT) has introduced a new policy through the Director General of Taxes Decree Number KEP-24/PJ/2025, which regulates the use of the e-invoice application. Effective January 1, 2025, e-invoices will only be required f...
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Coretax Rollout: Navigating Transition Period Disruptions
The Directorate General of Taxes (DGT) officially launched Coretax on January 1, 2025. This new tax administration system, which reportedly cost IDR 1.22 trillion, was designed to synchronize and integrate various tax applications across different pl...
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PMK 136/2024: Global Minimum Tax
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 Internat...
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Tax Invoice Guidelines for the Transition Period
The Harmonization of Tax Regulations Law has set a Value-Added Tax (VAT) rate of 12% to take effect no later than January 1, 2025. This planned rate increase has sparked debates and discussions, with some opposing the change. In December 2024, severa...
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Tax Update: 12% VAT Targets Only Luxury Goods
Starting January 1, 2025, the Value-Added Tax (VAT) rate increased from 11% to 12%, as stipulated in Article 7 Section (1) of the VAT Law, amended by the Harmonization of Tax Regulations Law. Initially, in a previous press release (KT-03/2024), ...
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