An OECD update confirms that Indonesia has completed its internal procedures for the Multilateral Instrument to take effect for its tax treaty with the Mongolia, setting out application dates from 2026 and 2027
According to an update from the OECD, Indonesia deposited, on 12 January 2026, an updated notification confirming the completion of its internal procedures for the entry into effect of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) in respect of its tax treaty with Mongolia.
For the 1996 Indonesia–Mongolia tax treaty, the MLI applies to withholding taxes on or after 1 January 2027. For other taxes, the provisions apply in Indonesia for taxable periods beginning on or after 1 January 2027, and in Mongolia for taxable periods beginning on or after 11 August 2026.
The document consolidates Indonesia’s notifications under Article 35 of the Convention confirming completion of internal procedures across a wide range of Covered Tax Agreements. It records notifications for numerous partner jurisdictions, extensions to the list of covered agreements, the withdrawal of a reservation in relation to Finland, and additional legal notifications, tracking Indonesia’s progress in implementing the MLI across its treaty network.
