On 20 December 2022, Indonesia published Government Regulations No. 55 of 2022 with provisions to implement the OECD’s two-pillar solution to address the tax challenges arising from the digitization of the economy. This includes authorizing the Director-General for Taxes to implement relevant agreements, including in relation to the allocation of taxing rights to income from Indonesia without a physical presence under Pillar One and the imposition of a global minimum tax under Pillar Two.
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