{
    "success": true,
    "data": {
        "id": 1877926,
        "msgid": "misbakhun-confirms-pfii-will-still-refer-to-gmt-agreement-1784821951",
        "date": "2026-07-23 22:13:32",
        "title": "Misbakhun Confirms PFII Will Still Refer to GMT Agreement",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "The Indonesian International Financial Centre (PFII) will offer attractive tax facilities to investors, including a 50-year tax holiday, but these will remain compliant with the Global Minimum Tax (GMT) agreement. Mukhamad Misbakhun, Chair of House Commission XI, stated that the mechanism will determine whether investing companies fall under the GMT scope, which Indonesia adopted from 1 January 2025. The PFII is a strategic initiative to catalyse financial market deepening and strengthen Indonesia's position in the global financial ecosystem.",
        "content": "<p>Jakarta, CNBC Indonesia \u2013 The Indonesian International Financial\nCentre (PFII) will provide attractive taxation facilities to investors.\nNevertheless, these facilities will remain guided by the Global Minimum\nTax (GMT) agreement.<\/p>\n<p>This was affirmed by Mukhamad Misbakhun, Chair of Commission XI of\nthe House of Representatives (DPR), to CNBC Indonesia on Thursday\n(23\/7\/2016).<\/p>\n<p>\u201cThe law already stipulates that investors are granted a 50-year tax\nexemption. But of course we are aware of changes in the international\ntax landscape, and we follow all of that,\u201d he said.<\/p>\n<p>\u201cThe mechanism is already in place; we just need to see whether the\ncompanies investing in PFII fall within the scope of the global minimum\ntax or not. If not, it means they can still enjoy the tax exemption for\n50 years,\u201d Misbakhun asserted.<\/p>\n<p>The GMT is a global agreement that has been implemented in more than\n60 countries. Indonesia is on that list, having applied the GMT since 1\nJanuary 2025, along with Singapore, Malaysia, Hong Kong and the UAE.<\/p>\n<p>Within PFII, the GMT rules will also apply to covered Multinational\nEnterprises (MNEs), namely multinationals with global turnover of at\nleast 750 million euros.<\/p>\n<p>The scheme for MNE groups operates through the Qualified Domestic\nMinimum Top-up Tax (QDMTT) imposed by the country of the subsidiary, the\nIncome Inclusion Rule (IIR) imposed by the country of the parent entity,\nand the Undertaxed Payment Rule (UTPR) imposed by other countries in the\ngroup.<\/p>\n<p>This implementation will not create additional taxation if the\nbusiness operator is an individual and not part of an MNE with global\nturnover below 750 million euros. Furthermore, business operators in\nPFII whose effective tax rate is above 15% after consolidation with\ntheir subsidiaries outside PFII in Indonesia will not be affected.<\/p>\n<p>\u201cBeyond the tax holiday, investors, business operators and experts\nthere will also be granted various other facilities, such as exemptions\nfrom income tax collection for SPLN, as well as various VAT and luxury\ngoods sales tax (PPnBM) facilities,\u201d he explained.<\/p>\n<p>PFII is the implementation of Article 248A of Law Number 4 of 2026\nconcerning Amendments to Law Number 4 of 2023 on the Development and\nStrengthening of the Financial Sector (P2SK), which mandates the\nregulation of the Indonesian International Financial Centre through\nseparate legislation.<\/p>\n<p>PFII is a strategic step to act as a catalyst for deepening the\nfinancial market, diversifying instruments and funding sources,\nincreasing investment, and strengthening Indonesia\u2019s position as part of\nthe global financial ecosystem.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/misbakhun-confirms-pfii-will-still-refer-to-gmt-agreement-1784821951",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}