Jakarta, CNBC Indonesia - The government plans to extend the tax\nholiday incentive policy that ended on 31 December last year. However,\nthere will be slight modifications to the policy considering the global\nagreement on the implementation of the global minimum tax (GMT).<\/p>\n
Secretary of the Coordinating Ministry for Economic Affairs,\nSusiwijono Moegiarso, explained that the GMT incentive scheme has been\nimplemented in many countries. Therefore, Indonesia needs to adjust its\npolicies accordingly.<\/p>\n
\u201cVarious incentives of ours will begin to be reviewed, and I think\nnot only in Indonesia, GMT is in all countries. We will see that so far\nvarious investment attractions of ours rely on tax holidays and tax\nloans,\u201d said Susi when met at Djakarta Theater, Central Jakarta,\nWednesday (15\/4\/2026).<\/p>\n
As is known, the provision of tax holiday incentives is regulated in\nMinister of Finance Regulation (PMK) Number 130 of 2020 and ended on 31\nDecember 2025. However, there are several regulations in the policy that\nneed to be reviewed.<\/p>\n
He revealed that the adjustment of tax incentives is part of the\ngovernment\u2019s strategy to anticipate global developments. Thus,\nIndonesia\u2019s investment competitiveness can be maintained.<\/p>\n
\u201cI think it is also part of the government\u2019s strategy to anticipate\nglobal developments, so that it is in line, because investors are\ncross-country, so the tax treatment, the incentives must be adjusted to\nour international commitments,\u201d he said.<\/p>\n
Previously reported, the Director General of Taxation of the Ministry\nof Finance, Bimo Wijayanto, revealed that the implementation of the\nGlobal Minimum Tax (GMT) policy in Indonesia will fully commence in\n2026.<\/p>\n
The GMT scheme applicable in Indonesia is the imposition of top-up\ntax for multinational companies (MNCs) with a minimum consolidated gross\nturnover of 750 million euros and not paying tax in the countries where\nthey operate at a minimum rate of 15%.<\/p>\n
\u201cFor the 2025 tax year, top-up tax payments are to be made no later\nthan as stipulated on 31 December 2026,\u201d said Bimo during a working\nmeeting with Commission XI of the DPR, Jakarta, Monday (24\/11\/2025).<\/p>\n
The calculation of top-up tax in Indonesia utilises the mechanisms of\nincome inclusion rules (IIR), undertaxed payment rules (UTPR), and\nqualified domestic minimum top-up tax (QDMTT).<\/p>\n
IIR is a provision that requires the Ultimate Parent Entity of an MNC\nGroup to pay additional tax on its Constituent Entities that are subject\nto an effective tax rate of less than 15%. Meanwhile, QDMTT is a policy\nthat ensures the minimum tax is at least paid in the country of\norigin.<\/p>\n
Then, UTPR is a provision that applies if IIR is not implemented by\nthe domicile country of the Ultimate Parent Entity\/Intermediate Parent\nEntity in its domestic provisions. The additional tax imposed based on\nUTPR is the same as the additional tax based on IIR, which will then be\nallocated to all UTPR jurisdictions based on a certain formula.<\/p>\n
Bimo explained that in 2025, the IIR and DMTT calculation mechanisms\nwill actually begin to apply, accompanied by socialisation to taxpayers\nand tax authorities, IT infrastructure preparation, preparation of the\nDirector General of Taxation Regulation on GMT Administration\nProcedures, and preparation of exchange of information (EOI) between\ncountries.<\/p>\n
Meanwhile, in 2026, he assured that UTPR will begin to apply,\nalongside the start of implementation of global minimum tax payments for\nthe 2025 tax year, as well as socialisation to taxpayers and tax\nauthorities, IT preparation, and EOI.<\/p>\n
In 2027, he said that the submission of Global Anti-Base Erosion\n(GloBE) Information Return (GIR) and notifications from constituent\nentities to the Director General of Taxation, submission of tax returns\nin implementing GloBE, and implementation of EOI will also begin to\napply.<\/p>\n
Finally, in 2028, risk assessment will be conducted, accompanied by\nthe exchange of GIR and notifications with countries that have agreed to\nimplement GMT in accordance with the OECD initiative.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/government-to-follow-global-tax-agreement-here-are-the-changes-1776268308", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }