News Category Tax

In the General Provisions and Tax Procedures Draft Bill (RUU KUP), the Government re-inserts articles related to Law No. 11 the Year 2016 concerning Tax Amnesty. The rules regarding the tax amnesty are inserted in Articles 37B to 37I.   Functions of the General ... Read more

Transfer pricing has received serious attention from the Indonesian government. Transfer pricing cases are exposed with higher tax sanctions and also special tax audit procedures. Although Indonesia is not a member of the OECD, Indonesia is quite active in implementing the OECD ... Read more

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