The transfer pricing (TP) documentation rules has been revised by Indonesian tax authority to match global standards and curb practices of tax avoidance. Head of the international department at the finance ministry’s tax office, Mr John Hutagaol said “this is so that taxpayers can explain to the tax office that its special transaction with an affiliate is still within fair boundaries”.
In accordance with the rules, a multinational group with an annual consolidated turnover of not less than $1.2 billion has to make a country-by-country (CbC) report with details on how much tax the group pays in each country of operation, what type of business it does, its turnover, balance sheets and global structure.
