PMK 112/2025: Updates to the Tax Treaty Implementation Procedures
Toward the end of the 2025 fiscal year, the government introduced a series of strategic tax policies. One of the most significant developments was the issuance of the Minister of Finance Regulation (Peraturan Menteri Keuangan/PMK) Number 112 of 2025,...
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Non-Resident Taxpayers
In a previous article, Ideatax discussed resident taxpayers. This article now comprehensively focuses on non-resident taxpayers, covering their definition, applicable criteria, and practical examples based on the latest tax regulations. A good g...
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Resident Taxpayers: Definition, Criteria, and Latest Regulations
Determining whether a taxpayer qualifies as a resident taxpayer is a fundamental aspect of Indonesia’s tax system. This classification not only establishes the taxing rights of the Indonesian tax authorities but also defines the taxpayer’s obligation...
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Environmental, Social, and Governance: Understanding Responsible Investment in Indonesia
The severe floods that recently hit Sumatra and Aceh are a stark reminder that environmental damage can trigger widespread social and economic consequences. Alongside heavy rainfall, illegal logging and mining practices have diminished the water...
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Tax Holidays in Indonesia's Special Economic Zones
The Ministry of Finance has reported a steady increase in the estimated value of tax expenditures related to tax holiday incentives in Special Economic Zones (SEZs) over the years. While the growth is modest, it reflects a rising interest and confide...
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Arm’s Length Principle: A Cornerstone of TP Doc
As 2025 draws to a close, taxpayers are reminded to start preparing their financial statements and supporting documents for tax return filing. For taxpayers engaging in related-party transactions, one crucial requirement that must not be overlooked i...
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Updates to the 0.5% MSME Final Income Tax and Its Business Impact
The government is currently preparing amendments to Government Regulation (Peraturan Pemerintah/PP) Number 55 of 2022 concerning Income Tax Adjustments. One of the main areas under review is the application of final income tax for micro, small, and m...
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Inside the 2025 Common Reporting Standard (CRS) Amendments
In October 2025, the Directorate General of Taxes (DGT) issued Announcement Number PENG-3/PJ/2025 regarding the implementation of amendments to the Common Reporting Standard (CRS), as part of efforts to improve access to financial information for tax...
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Technical Assistance Tax Management: Indonesia-Japan Transactions
The Ministry of Trade reported that in the first half of 2025, trade between Indonesia and Japan ranked fourth among Indonesia’s largest trading partners after China, the United States, and India. During this period, Indonesia’s exports to Japan reac...
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Tax Implications of Yuan-Denominated (Dim Sum) Bonds in Indonesia
In October 2025, the Indonesian government officially issued yuan-denominated bonds, commonly known as dim sum bonds. This is a noteworthy milestone in the country’s efforts to diversify funding sources. But how are these bonds treated for tax purpos...
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Government-Borne VAT for Domestic Flights (PMK Number 71 of 2025)
As the year draws to a close, domestic mobility in Indonesia typically surges, especially during the Christmas and New Year holidays. To maintain household purchasing power and stimulate the economy, the government has issued Minister of Finance Regu...
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Financial Statements for Tax Purposes
Under Indonesian tax law, financial statements are an inseparable part of the annual tax return, especially for corporate taxpayers. Without proper financial statements, a tax return may be deemed incomplete and considered not filed. Therefore, under...
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Determining the Registration of Individual and Corporate Taxpayers at Large and Special Tax Offices
As is widely known, the Directorate General of Taxes (DGT) classifies taxpayers in Indonesia into several administrative categories. These categories are managed under different tax offices, including small tax offices, medium tax offices, large tax ...
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Article 26 Withholding Tax on Foreign Taxpayers
Article 26 Withholding Tax on Foreign Taxpayers In previous articles, we have discussed withholding taxes under Articles 21, 22, and 23, as well as the income tax provisions under Articles 24 and 25. This time, we will look into Article 26 withh...
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