News Category Tax

The Transaction Net Margin Method (TNMM) uses a profit level indicator (PLI) to be compared. The comparator used in this method is the net profit margin against an indicator (assets, sales or costs, will be explained below) of similar companies (business fields, functions, and ... Read more

Cost-Plus Method for Transfer Pricing   The Cost-Plus method is suitable to used by manufacturing companies or those performing production functions and can also be used for service providers. The Cost Plus method determines the transfer price by adding a reasonable ... Read more

The Resale Price method uses a comparison of the gross profit margin between a company with the controlled transaction and the gross profit margin of the comparable uncontrolled transaction (another company that is an independent party). The type of company that is the ... Read more

The Comparable Uncontrolled Price "CUP" method compares the price charged for goods or services transferred in a controlled transaction with the price charged for goods or services in an uncontrolled transaction between comparable independent parties in similar ... Read more

Certain taxpayers who conduct transactions with related parties (“transfer pricing”) are required to apply the arm’s length principle in transfer pricing, prepare and maintain transfer pricing documents (“TP Documentation”). We have described ... Read more

Certain taxpayers who conduct transactions with related parties (“transfer pricing”) are required to apply the arm length principles in their business practice, prepare and maintain transfer pricing documents (“TP Documentation”). We will discuss ... Read more

Shifting the profit to countries that provide lower taxes or even tax exemptions, have resulted in losses in tax revenues. It has become one of the Indonesian government's concerns in tax matters.   Related Party Transactions on Tax Regulations in ... Read more