Income tax on income earned by individuals and corporate entities. · 2 articles
Income Tax
The Indonesian government is reviewing its fiscal incentive design, including the tax holiday facility, in response to the implementation of the global minimum tax (GMT), which requires a minimum effective tax rate of 15% for multinational enterprise (MNE) groups with consolidated gross turnover of at least EUR750 million. Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono, stated that GMT could reduce the effectiveness of profit-based incentives such as tax holidays, since tax savings obtained by companies through such facilities could still be collected as top-up tax by other jurisdictions. Indonesia has committed to implementing the Pillar 2 GloBE Rules, with technical provisions on GMT regulated under PMK 136/2024. However, the government has not decided to discontinue the tax holiday facility and will continue to study the most appropriate incentive scheme under the new global tax regime. Beyond fiscal incentives, the government also emphasized the importance of expanding market access through international trade cooperation as an instrument to boost investment competitiveness, especially amid global trade tensions. The government identified four key strategies to strengthen the downstream industry ecosystem and high-value-added industries: strengthening investment, offering competitive incentives, improving domestic supply chains, and expanding market access.
Income Tax
DDTC Academy held an exclusive seminar titled 'Corporate Income Tax Return Preparation Strategy 2026' on September 22, 2026 at Menara DDTC. The event featured two DDTC Consulting professionals, Erika and Bobby Aldi Anggara, who discussed various important aspects of preparing Annual Corporate Income Tax Returns. The material covered included identification of taxable and non-taxable income, treatment of deductible and non-deductible expenses, the concept of 3M costs (to earn, collect, and maintain income), and fiscal reconciliation to adjust commercial profit into taxable income. Participants were also equipped with understanding of tax credits, fiscal loss compensation, and administrative aspects of submitting Annual Corporate Income Tax Returns in the coretax era in accordance with PER-11/PJ/2025. The seminar emphasized the importance of balancing substance and administrative aspects in corporate tax reporting. DDTC Academy also announced it will hold a follow-up seminar titled 'Transfer Pricing Aspects in the Fast-Moving Consumer Goods (FMCG) Industry' on September 30, 2026, and offers personalised training programs for companies requiring tax training tailored to specific needs.
