Indonesia announced tax incentives for apparel, leather and footwear industries
A government regulation No. 9, 2016 increases the locations where tax incentives are available for investments. According to this regulation, tax incentives previously either not available or limited to investments in certain regions and are being
See MoreWorld Bank approves funds for Indonesian fiscal policy reform
On 31 May 2016 the World Bank announced the first Indonesia Fiscal Reform Development Policy Loan to strengthen revenue collection and improve the quality of spending. The financing amounting to USD 400 million is to be used to support policy and
See MoreIndonesia: Reduced final withholding income tax rates on interest income
As per the new Regulation No. 123/2015 issued in late December 2015, final withholding income tax rates have been reduced on interest received or earned from deposits, savings or Bank Indonesia (BI) Certificate discounts, provided that the source
See MoreIndonesia: IMF comments on fiscal position
The International Monetary Fund (IMF) has issued a report following the conclusion of discussions with Indonesia under Article IV of its articles of agreement. Indonesia’s economic outlook remains solid despite a difficult external environment in
See MoreIndonesia: Issued Regulation on Fixed Assets Revaluation
The Ministry of Finance (MoF) issued Regulation No. 191/PMK.010/2015 (PMK-191) on the revaluation of fixed assets in order to assist taxpayers when the thin capitalization rules are implemented).This regulation is applicable to those companies that
See MoreIndonesia: Revised Debt-to-Equity Ratios for 2016
As per the regulation No. 169/PMK.010/2015 issued by the Ministry of Finance, the debt-to-equity ratio under the “thin cap” rules is set at 4:1 maximum for fiscal year 2016. Indonesia’s thin capitalization rules regulate the deductibility of
See MoreOECD: Tax trends in Indonesia, Malaysia and the Philippines
The latest OECD publication on revenue statistics in Asian countries looks at trends in Indonesia, Malaysia and the Philippines from 1990 to 2013 and compares them to two OECD countries (Korea and Japan). The study finds that the tax revenue as a
See MoreIndonesia: IMF comments on fiscal policy
The IMF has issued a report after its Article IV consultations with Indonesia. The Indonesian economy slowed in 2014 but growth is expected to increase to 5.2% in 2014 with an increase in public investment in infrastructure. Economic risks arise
See MoreIndonesia: Releases Regulation on New Advance Pricing Agreement
The Ministry of Finance in Indonesia has released regulation No. 7/PMK.03/2015 (PMK-07) on the implementation of advanced pricing agreements (APAs). The guidance on the processes is provided in PMK-07. PMK-07 states that the Directorate General of
See MoreIndonesia: Plans to Introduce VAT on E-Commerce
The Finance Minister of Indonesia has confirmed their plan to introduce value-added tax (VAT) on e-commerce. In order to implement this plan, the Ministry of Communications and Information Technology has been asked to prepare regulations to tax
See MoreIndonesia temporarily bans overseas travel by key tax debtors
The Ministry of Finance of Indonesia has banned overseas travel of key tax debtors with total debt amount of IDR3.32 trillion (USD268m) for a temporary period of six months. This step was taken to ensure effective tax administration and compliance.
See MoreTIEA between Indonesia and Bermuda ratified by Indonesia
Indonesia has ratified its Tax Information Exchange Agreements (TIEA) with Bermuda and it was published in the official gazette on September 12,
See MoreExchange of Information on Taxation between Indonesia and Singapore
In a meeting on 15 December 2014, Singapore Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam and Indonesia’s Finance Minister Bambang Brodjonegoro noted the excellent cooperation enjoyed by both the Indonesian and Singapore
See MoreIndonesia’s Finance Minister Aims to Increase Tax Revenue
The new Indonesian Finance Minister has stated that he is planning to increase the effectiveness of tax collection by increasing the number of people involved in tax collection. Indonesia needs to raise more tax revenues, at a time when the
See MoreIndonesia- Papua New Guinea Double Taxation Treaty (DTA) enters into force on March 5, 2014
The Double Taxation Treaty (DTA) between Indonesia and Papua New Guinea has entered into force on March 5,
See MoreIndonesia: Tax Information Exchange Agreement (TIEA) with the Isle of Man enters into force
The Tax Information Exchange Agreement (TIEA) between Indonesia and the Isle of Man entered into force on 22 September 2014. The Ministry of Foreign Affairs of the Republic of Indonesia in Jakarta has confirmed regarding the agreement. The agreement
See MoreIndonesia: Copper Miners Hit Back At Export Tax
From the beginning of 2014 the Indonesian government is charging an export tax on mineral concentrates. The aim is to raise the amount of domestic value added and increase domestic economic activity associated with the mineral sector. The government
See MoreIndonesian tax office signs an agreement on tax revenues and data sharing
A recent memorandum of understanding (MoU) between the Jakarta city administration and the tax directorate general covers the issue of data swaps and ways to increase tax revenues. The two authorities have reached an agreement on the exchange of
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