JAKARTA, DDTCNews - The government has yet to complete the\nformulation of alternative incentives to be offered to investors\nfollowing the implementation of the global minimum tax in Indonesia\nunder Minister of Finance Regulation (PMK) 136\/2024.<\/p>\n
Minister of Investment and Downstream Industries\/Head of the\nInvestment Coordinating Board (BKPM) Rosan Roeslani said the new\nincentives are being reviewed by the Ministry of Finance (Kemenkeu).<\/p>\n
\u201cThey are still under review by the Ministry of Finance and the\nCoordinating Ministry for Economic Affairs,\u201d he said on Tuesday\n(29\/4\/2025).<\/p>\n
The government has been promising the formulation of alternative\nincentives since last year. New forms of incentives are needed to\nmaintain investment attractiveness and provide compensation to taxpayers\nbenefiting from tax holidays.<\/p>\n
As a result of the implementation of the global minimum tax at a rate\nof 15 per cent, taxpayers receiving tax holidays may be required to pay\nadditional tax, or top-up tax, equivalent to the difference between the\nminimum rate and their effective rate.<\/p>\n
\u201cWe have informed tax holiday recipients that if this [global minimum\ntax] is implemented, there will be adjustments. However, they should not\nworry as we can provide incentives in other forms,\u201d Rosan said last\nyear.<\/p>\n
The global minimum tax applies to multinational enterprise groups\nwith revenue of at least \u20ac750 million in at least two of the four tax\nyears preceding the year in which the global minimum tax is imposed.<\/p>\n
If a constituent entity of a multinational enterprise group pays tax\nat an effective rate of less than 15 per cent, the entity will be\nsubject to additional tax equal to the difference between the effective\nrate and the 15 per cent minimum rate.<\/p>\n
The income inclusion rule (IIR) and qualified domestic top-up tax\n(QDMTT) under PMK 136\/2024 officially came into effect from 2025, whilst\nthe undertaxed payment rule (UTPR) is set to take effect from next\nyear.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/government-yet-to-finalise-alternative-incentives-for-investors-amid-global-minimum-tax-implementation-1771236044", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }