RSM Indonesia Client Alert is part of our firm newsletters, however it is not designed for a consistent periodical basis, and its publishing depends on whether there is new technical issues that we would like to share to our clients.
RSM Indonesia Client Alert - 2023
RSM Indonesia Client Alert – 14 July 2023
On 27 June 2023, the Minister of Finance issued Regulation No. 66 Year 2023 concerning Income Tax Treatment of Reimbursement or Compensation related to Employment or Services received or earned On 27 June 2023, the Minister of Finance issued Regulation No. 66 Year 2023 concerning Income Tax Treatment of Reimbursement or Compensation related to Employment or Services received or earned in On 27 June 2023, the Minister of Finance issued Regulation No. 66 Year 2023 concerning Income Tax Treatment of Reimbursement or Compensation related to Employment
On 27 June 2023, the Minister of Finance issued Regulation No. 66 Year 2023 concerning Income Tax Treatment of Reimbursement or Compensation related to Employment or Services received or earned in
the form of Benefit in Kind (“PMK-66”). PMK-66 is the long-expected regulation implementing the taxation
of Benefits in Kind (“BIK”) in accordance with Government Regulation No. 55 Year 2022 that was issued
on 20 December 2022 ("PP-55”).
As an implementing regulation, PMK-66 does not change the stipulation per Law No 7/2021 on the Harmonization of Tax Regulations that BIK are income tax objects for the recipient and the expense will be deductible for the provider if the costs are related to gaining, collecting or maintaining taxable income.
PMK-66 provides further details regarding what BIK are not included as an income tax object, how to determine the value of certain BIK, and the obligation to withhold. Importantly, PMK-66 also clarifies the obligations for BIK received in 2022 and those received during January - June 2023.
RSM Indonesia Client Alert – 29 May 2023
Government Regulation No 12 Year 2023 concerning the Granting of Business Licenses, Ease of Doing Business, and Investment Facilities for Business Players in Ibu Kota Nusantara (“GR-12”) was issued on 6 March 2023 to encourage investment by businesses in Ibu Kota Nusantara (“IKN”) and specific areas nearby, known as Partner Regions.
The regulation is effective on 6 March 2023.
There are two broad types of investment facility:
Those under the authority of the Central Government:
⇒ Income tax
⇒ VAT and Sales Tax on Luxury Goods
Those under the authority of the IKN Authority:
⇒ Special tax and special revenue facilities
⇒ Facilitation, provision of land and infrastructure to implement investment activities in IKN
This Client Alert summarizes the tax facilities for income tax, VAT and Sales Tax on Luxury Goods.
The over-arching concept is that the facilities are only available in relation to activity and income generated in the IKN by taxpayers located in the IKN.
RSM Indonesia Client Alert - 2022
RSM Indonesia Client Alert – 31 May 2022
In recognition of increased crypto asset trading activity, the Ministry of Finance (MoF) issued regulation No. 68/PMK.03/2022 on 30 March 2022 (PMK-68) to regulate the taxation of these transactions.
When is it effective?
PMK-68 is effective on 1 May 2022.
What is crypto asset?
PMK-68 defines crypto asset as an intangible commodity in the form of a digital asset that uses cryptography, peer-to-peer networks, and a distributed ledger to manage the creation of new units, verify transactions and secure transactions without the intervention of other parties.
RSM Indonesia Client Alert – 31 January 2022
As stipulated in Law No 7 to Harmonise Tax Regulations (the HPP Law), the Voluntary Disclosure Program (VDP) is now active, running from 1 January until 30 June 2022. To support implementation of the VDP, including guidance for submission, Minister of Finance Decree No. 196/PMK.03/2021 dated 22 December 2021 (PMK-196) has been issued, with effect from 23 December 2021.
This Client Alert summarises PMK-196 and aspects of the HPP Law with regards to the VDP.