On 18 March 2020, the Indonesian Ministry of Finance released 22/PMK.03/2020 which updates the Advance Pricing Agreements (“APA”) regulations. The new regulations, effective 18 March 2020, include the following amendments:
- Previously extensive information had to be provided during the pre-filing process, but under new regulations, the taxpayer is permitted to file the application for the APA directly
- Bilateral and unilateral APAs will both be applicable for a period of five years. Previously it was three years for unilateral APAs and four years for bilateral APAs
- Rollback is permitted under new regulations which was not previously possible. The rollback applies to years prior to the ones covered by the APA, provided that facts and conditions remain the same and certain other conditions are met.
- APAs can now be extended for a consecutive period. Requests for extensions in accordance with the previous regulations were treated as new requests. However, an extension can now be granted if the facts and circumstances remain the same and other conditions are met.
