1. Upcoming Tax Reform in Indonesia The tax reform announced in May 2024 introduces significant changes to the Indonesian taxsystem. Two key updates include the integration of the National ID Number (National ID) asthe Taxpayer Identification Number (TIN) and the...
On 31 March 2022, the DGT issued Regulation No. PER-03/PJ/2022 (“PER-03”) regarding the VAT Invoice arrangements which became effective on 1 April 2022. PER-03 mainly serves as a compilation of several previous regulations related to VAT Invoicing with several...
On 30 March 2022, the MoF released the following regulations: MoF Regulation No.58/PMK.03/2022 (“PMK-58”) on the appointment of an “Other Party as Tax Collector” and the tax compliance procedures for the procurement of goods and services to Government Institutions;...
On 30 March 2022, the MoF also issued Regulation No. 69/PMK.03/2022 (“PMK-69”) stipulating the Income Tax treatment of interest income in peer-to-peer (P2P) lending, as well as the VAT treatment of Financial Technology (“Fintech”) activities. Fintech is an activity...
On 30 March 2022, the MoF issued Regulation No.68/PMK-03/2022 (“PMK-68”) that outlines the VAT and Income Tax treatment of Crypto Asset trading transactions. Crypto Asset (CA) is defined as an intangible commodity in the form of digital asset, using cryptography,...
The HPP Law also enhanced the mechanism relevant to the “Final” VAT rate. In this regard, the MoF has now issued several implementing regulations on this “Final” VAT regime in accordance with Article 9A of the HPP Law. All of these implementing regulations were...
MoF Regulation No.70/PMK-03/2022 (“PMK-70”) outlines those deliveries of food and beverages (“F&B”), catering services, art and entertainment services, hotel services, and parking services which are not subject to VAT. This treatment is because these goods and...
The use of “Other Value” for the VAT imposition base is stipulated under Article 8A of the VAT Law. Three of the new MoF Regulations cover this aspect for certain Liquefied Petroleum Gas (“LPG”) products, tobacco products, and subsidized fertilizer for the agriculture...
The VAT mechanism for foreign e-commerce supplies was introduced in Law No.2 of the Year 2020 and its implementing regulations MoF Regulation No.48/PMK.03/2020 (“PMK-48”) and DGT Regulation No. PER-12/PJ/2020 (“PER-12”). The MoF has now issued Regulation No....