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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A New Era of Taxpayer Compliance Monitoring
The close of 2025 marks a pivotal milestone for the Ministry of Finance, particularly the Directorate General of Taxes (DGT). In December 2025, the government issued Minister of Finance Regulation (Peraturan Menteri Keuangan/PMK) Number 111 of 2025 c...
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Taxpayer Rights and Obligations in Tax Audits: A Perspective on the Latest Provisions
Tax audits are a routine part of the business landscape. They are a natural outcome of the self-assessment system and serve as a check and balance mechanism for tax obligations (Rabiyah, 2015). The OECD defines a tax audit as an examination to ensure...
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PMK 15 of 2025: Updates to Tax Audit Provisions
On February 14, 2025, the Minister of Finance issued Regulation Number 15 of 2025 (PMK-15) to update Regulation Number 17/PMK.03/2013 (PMK-17). PMK-15 simplifies and reorganizes previous regulations on tax audits to provide legal certainty. Scop...
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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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