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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Tax Incentives for Mergers and Acquisitions
Source: IMAA, 2026 Mergers and acquisitions (M&A) are a widely used corporate strategy to expand operations, improve efficiency, and enhance competitiveness. According to the Institute for Mergers, Acquisitions, and Alliances (IMAA), Indones...
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Tax Brief: Fourth Amendment to Coretax Provisions
Tax provisions governing the implementation of Coretax have once again been amended. The government has officially issued Minister of Finance Regulation (Peraturan Menteri Keuangan/PMK) Number 1 of 2026 concerning the Fourth Amendment to PMK Number 8...
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Reformulating Article 21 Withholding Tax
As of now, 186 out of 416 regencies and cities have set their 2026 regency minimum wages (upah minimum kabupaten/UMK). According to the Ministry of Manpower's preliminary recap, the average UMK for 2026 stands at IDR 3.4 million per month. The highes...
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Article 21 Withholding Tax Incentives for 2026
The government anticipates that 2026 will remain a challenging year marked by heightened uncertainty. Ongoing geopolitical tensions, domestic security concerns, and Indonesia’s exposure to natural disasters continue to weigh on economic growth. ...
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Navigating the Tax Landscape of Employee Stock Options
Employee stock options (ESOs) have become a cornerstone of modern compensation strategies, offering employees and executives a stake in their company’s success. By definition, ESO is a form of equity-based compensation provided to employees and execu...
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How to File Your Annual Corporate Income Tax Return Using E-form
The deadline to file your Annual Corporate Income Tax Return is approaching. According to Article 3 Section 3 of Law of the Republic of Indonesia Number 6 of 1983 concerning General Provisions and Procedures of Taxation (Ketentuan Umum dan Tata Cara ...
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Finance Minister Responds to Trump's Tariff War
April 2, 2025, might just mark the beginning of a new era in global trade tensions. On this day, the United States (US) President Donald Trump announced sweeping new import tariffs, aiming to boost the US economy and reduce reliance on other countrie...
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Navigating Tax Payments in the New Coretax System
It has been three months since the Directorate General of Taxes (DGT) introduced the Coretax system to improve tax administration. While the system aims to simplify processes, some taxpayers have encountered issues when filing and paying taxes. In re...
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Understanding Tax Crime Investigations
In its 2023 Annual Report, the Directorate General of Taxes (DGT) revealed that it had completed 89 investigation files, which were officially declared complete (P-21) by the public prosecutor. Additionally, the report noted that 308 case files had b...
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Tax as a Lifeline for Indonesia's Textile Industry
February 2025 may go down as a dark chapter in Indonesia's textile industry. One of Southeast Asia's largest textile factories, inaugurated by President Soeharto in 1966, met a tragic end in court.After a prolonged struggle, PT Sri Rejeki Isman—also ...
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DGT Grants Penalty Relief for Late Tax Return Submissions
The Indonesian government has once again provided penalty relief for taxpayers submitting their tax returns. This policy is outlined in the Decree of the Director General of Taxes Number KEP-79/PJ/2025, issued on March 25, 2025. The decree pertains t...
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Maximizing Danantara’s Tax Management
Daya Anagata Nusantara, more commonly known as Danantara, has recently become a familiar name. The government officially established the Investment Management Agency (Badan Pengelola Investasi / BPI), known as Danantara, under Law of the Republic of ...
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Administrative Relief Amid Coretax System Technical Issues
The Directorate General of Taxes (DGT) has been rolling out its new Coretax system, an updated tax administration information system, for over two months. Promoted as the most advanced system capable of integrating various business tax processes, its...
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