Out-of-Court Tax Dispute Resolution
The Directorate General of Taxes (DGT) has reported a steady increase in the number of tax disputes over the past few years. In 2020, disputes filed by both taxpayers and the DGT reached 187,435 cases. This figure rose to 212,434 cases in 2021. ...
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Article 21 Income Tax Withholding Methods
Ahead of Eid al-Fitr and the distribution of religious holiday allowances (tunjangan hari raya/THR), public discussions about Article 21 withholding tax have intensified. The topic gained attention following perceptions of inequality in how THR is ta...
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How the Middle East Conflict Affects Indonesia’s Economy
Tensions in the Middle East have flared up again. Relations between countries have heated up amid military attacks and are now affecting world trade routes passing through the Strait of Hormuz. Not only is it happening in the countries involved, but ...
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Revisiting the Indonesia-United States Tax Treaty
Following his visit to the United States in early February 2026, Indonesia’s President returned with a reciprocal agreement, the Agreement on Reciprocal Trade (ART). Under the agreement, the US reduced import tariffs on Indonesian good...
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Mitigating the Risk of Share Freezes
At a press conference in Jakarta on February 23, 2026, the Director General of Taxes announced that the Directorate General of Taxes (DGT) had frozen the shares of two taxpayers, valued at IDR 2.6 billion. However, the enforcement process could not p...
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The Chart of Accounts for Coretax Reporting
The Chart of Accounts for Coretax Reporting As 2025 winds down, corporate taxpayers with calendar-year reporting periods must prepare to transition to the new Coretax reporting system. This follows Minister of Finance Regulation Number 81 of 202...
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A Simple Guide: Coretax for Expatriates
A Simple Guide: Coretax for Expatriates The 2025 individual income tax filing season will kick off in early 2026. To ensure a smooth and efficient filing process, the Directorate General of Taxes (DGT) has begun its preparations well in adv...
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Article 23 Withholding Tax: Dividends, Interest, Royalties, Gifts, Services, and Rent
Article 23 Withholding Tax: Dividends, Interest, Royalties, Gifts, Services, and Rent In earlier articles, we discussed Article 21 and Article 22 withholding taxes. This time, we turn to Article 23 withholding tax, focusing on its subjects, obje...
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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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