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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Three Common Pitfalls in Submitting Certificate of Residence (CoR)
Three Common Pitfalls in Submitting Certificate of Residence (CoR) In August 2025, the Governor of Bank Indonesia (BI) noted that Japan and China rank among Indonesia’s largest trading partners that settle transactions in currencies other than t...
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Article 22 Income Tax: A Multidimensional Levy
Article 22 Income Tax: A Multidimensional Levy In our previous article, we discussed Article 21 income tax and its latest provisions, including the introduction of the effective tax rate (ETR). This time, we turn to Article 22 income tax, a levy...
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2025 Fiscal Stimulus Package
2025 Fiscal Stimulus Package Just a day after his inauguration on September 9, 2025, the new Minister of Finance was immediately confronted with pressing fiscal challenges, ranging from stagnant economic growth and high unemployment to persisten...
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Welcome Minister of Finance Purbaya Yudhi Sadewa
Welcome Home, Mr. Minister On Monday, September 8, 2025, President Prabowo Subianto swore in four ministers and one deputy minister of the Republic of Indonesia to serve the remainder of the 2025–2029 term. Those appointed were Purbaya Yudhi Sad...
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Breaking Down the Article 21 Withholding Tax Provisions
Breaking Down the Article 21 Withholding Tax Provision In its 2023 Annual Report, the Directorate General of Taxes (DGT) recorded Article 21 income tax revenue of IDR 200.98 trillion, or 99.59% of the target (DGT, 2024). Compared to the sam...
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Payment ID and Its Tax Implications
Payment ID and Its Tax ImplicationsTo mark the 80th anniversary of Indonesia’s Independence Day, Bank Indonesia (BI) had initially planned to launch Payment ID. However, BI later confirmed that the launch would not take place as scheduled. Accor...
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Redefining Independence Through Taxation
Redefining Independence Through Taxation On the eve of Indonesia’s 80th Independence Day, President Prabowo Subianto delivered the Financial Note on the 2026 State Budget before members of the House of Representatives and the People’s Consultati...
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What Is Tax in Indonesia?
What Is Tax in Indonesia?In Indonesia, tax is a mandatory contribution paid by the public to the state, as mandated by law. It serves as a significant source of funding for public services and national development. Tax also acts as a substantial inst...
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Selected Topics: VAT on Coal Transactions
Selected Topics: VAT on Coal Transactions The Director General of Taxes, Bimo Wijayanto, recently stated that the Directorate General of Taxes (DGT) is closely monitoring a sharp rise in tax refund claims from the mining sector in the second qua...
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