Close
An overview by PB Taxand, Taxand Indonesia
Experts from our Indonesian member firm PB Taxand have released their latest ‘Tax Update’ newsletter, providing an overview of the key tax considerations for corporate restructuring through mergers, consolidations, expansions, or acquisitions in Indonesia – which may result in significant tax burdens if
provisions are not carefully followed.
Key income tax rules require using market value for asset transfers unless book value is approved by the Director General of Taxes (DGT). Approval involves meeting strict conditions, such as demonstrating business purpose, maintaining ongoing operations, and ensuring asset retention for specific periods. Failure to comply could lead to recalculations based on market value. For VAT, asset transfers during restructuring between registered Taxable Entrepreneurs are not subject to VAT. Businesses must ensure compliance with these rules to avoid penalties or tax disputes.
You can read the full tax update in more detail here.
For similar content to our Global Guide, subscribe to our mailing list and keep up to date.