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All change – ITR’s Indonesia Special Focus launched

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Amid rapid changes in the Indonesian tax landscape, ITR’s correspondents cover the key changes, and advise how multinational enterprises (MNEs) can prepare.

Click here to read all the chapters from ITR's Indonesia Special Focus.

Indonesia’s Tax Harmonisation Law (HPP Law) was officially pronounced in October 2021. The law was designed to accelerate Indonesia’s economic recovery following the COVID-19 pandemic, while improving tax compliance and minimising the tax gap.

To achieve this, the law makes substantial changes to the Indonesian tax landscape, most of which will become effective in 2022.

In this Guide, DDTC describes how the Indonesian government is balancing relaxed taxation measures and incentives with an increasingly broad tax basis. The idea is to redistribute the tax burden in a fair, but also economically beneficial, way. As DDTC explains, tax control frameworks (TCF) are a key tool for MNEs in this landscape, helping tax directors to identify, manage, and mitigate risks.

Meanwhile, the threat of climate change is ever-present. RSM Indonesia analyses the steps that Indonesia, as one of the largest greenhouse gas emitters in Asia, is taking to introduce a carbon tax and build a greener economy.

Also in this Guide, Suryani Suyanto & Associates explores a softer side to the Indonesian government: its tax amnesty program. The program, which is in its second round following an initial round in 2016, is intended to improve voluntary compliance - but as ITR’s correspondents report, there are some downsides.

We hope you enjoy hearing from our tax experts in the third edition of the Indonesia guide.

Click here to read all the chapters from ITR's Indonesia Special Focus.

more across site & bottom lb ros

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The US technology company is defending its past Irish tax arrangements at the CJEU in a final showdown that could have major political repercussions.
ITR’s Indirect Tax Forum heard that Italy’s VAT investigation into Meta has the potential to set new and expensive tax principles that would likely be adopted around the world
Police are now investigating the leak of confidential tax information by a former PwC partner at the request of the Australian government.
A VAT policy officer at the European Commission told the forum that the initial deadline set for EU convergence of domestic digital VAT reporting is likely to be extended.
The UK government shows little sign of cutting corporate tax, while a growing number of businesses report a decline in investment as a result of the higher tax burden.
Mariana Morais Teixeira of Morais Leitão overviews Portugal’s new tax incentive regime designed to boost the country’s capital-depleted private sector.
Septian Fachrizal, TP analyst at the Directorate General of Taxes, outlines how Indonesia is relying heavily on the successful implementation of pillar one.