According to the new announcement from the Ministry of Finance, Indonesia is now applying a global minimum tax on multinational companies. This means that companies with global revenues of €750 million ($772 million) or more will be subjected to a 15% tax rate. The tax is part of a global reform agreed to by over 140 countries following the 2021 OECD Framework. While many nations have adopted the tax, some aspects, like profit reallocation, are still unresolved. Companies affected by the tax have until mid-2027 to meet reporting requirements for 2025, and any additional taxes owed must be paid by the end of 2026.
To read more on the transfer pricing regulation in Indonesia, click here.