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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Pioneer Industry Tax Incentives: Requirements and Forecasts for 2025
The 2023 tax expenditure report has been released, providing an overview of the government budget allocated for various tax incentives, including tax allowances, tax holidays, and other benefits. These incentives are designed to stimulate economic gr...
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Tax Revenue Realization in Q3 2025
The government has released its performance report for the state budget (APBN Kita) for November 2025. This report presents the leading macroeconomic indicators, including inflation, economic growth, commodity price movements, and state revenue perfo...
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Latest Changes to the 2025 OECD Tax Treaty Model
The Organisation for Economic Co-operation and Development (OECD) has released the latest updates to the OECD Model Tax Convention on Income and Capital. This update includes detailed guidance on taxing cross-border remote work as well as new pr...
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Tax Update: Use of Other Values as the Tax Base
BackgroundAt the end of 2024, the Minister of Finance of the Republic of Indonesia issued the Minister of Finance Regulation (Peraturan Menteri Keuangan / PMK) Number 131 of 2024 addressing Value-Added Tax (VAT) treatment on imports of taxable goods,...
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Tax Update: Government-Borne Article 21 Income Tax Incentive
BackgroundIn late 2024, Coordinating Minister for Economic Affairs, Airlangga Hartarto, announced a series of fiscal stimulus packages for 2025. In a press release (Number HM.4.6/440/SET.M.EKON.3/12/2024), he stated that these measures are intended t...
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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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