On October 2026, METALAW Tax Department Head have contributed to the 11th Edition of The Legal 500 Tax Comparative Guide specifically in the Indonesia Chapter, published by The Legal 500 which has been analysing law firms across the world.
Under this publication, METALAW Tax Department Head provides an overview of Tax matters in Indonesia, which was covered through 26 questions in a Q&A format provided by Graham Samuel-Gibbon of Winston Taylor.
This publication answers 26 topics describing the current condition of tax laws and regulations in Indonesia, which includes questions regarding specific tax information including the withholding tax, transfer pricing, the OECD model, problems, compliances, and trends. The issues discussed in this publication mainly focuses on:
- The key provisions in relation to taxation in Indonesia, including the development and amendment of tax laws and regulations in Indonesia (the legislative process), key tax authorities, taxpayers’ principal administrative obligations, and the confidentiality of taxpayer information.
- Tax administration and procedural requirements, including tax dispute resolution procedures, tax payment deadlines, and tax reporting requirements.
- The regulatory framework governing cross-border transactions between related parties, including transfer pricing and the arm’s length principle, transfer pricing documentation requirements, the expanded definition of related-party transactions, controlled foreign company (CFC) rules, transactions involving special purpose companies established in tax haven jurisdictions, the implementation of the global minimum tax under the OECD’s BEPS framework, and the application of double taxation avoidance agreements (DTAAs) and the Multilateral Instrument (MLI) to prevent tax avoidance and base erosion.
- Regulatory frameworks and mechanisms designed to prevent double taxation, combat tax evasion, and address base erosion and profit shifting (BEPS).
- The tax treatment of digital services and transactions involving peer-to-peer (P2P) lending, payment service providers, cryptocurrency transactions, and electronic commerce.
- Indonesian legal provisions implementing the BEPS Action Plan, including country-by-country reporting, tax collection assistance, and other forms of international tax cooperation, controlled foreign corporation provision.
- An overview of Indonesia’s tax framework, including individual income tax rates, value-added tax (VAT), royalty taxation, stamp duty, final income tax on savings income, capital gains taxation, and applicable withholding tax rates.
- Key provision tax treatment of resident and non-resident taxpayers, as well as special tax regimes applicable to certain business categories and jurisdictions, including micro, small, and medium enterprises (MSMEs) and Indonesia’s new capital city, Ibu Kota Nusantara.
- Developments in Indonesia’s carbon tax framework.
- Provisions governing the tax treatment of dividends received by domestic individual tax residents, non-resident individuals and foreign entities, and domestic and foreign companies, including listed and unlisted companies, with consideration of the applicable tax treatment based on the recipient’s status and the source of the dividends.
The publication of this Comparative Guide of The Legal 500 by METALAW Tax Department Head provides answers to the current frequently asked questions in relation to the taxation in Indonesia. METALAW has also contributed to several other articles which discussed Indonesia’s current trend and development of law in Conventus Law.
For further information, please contact:
MetaLAW, Legal & Tax Consultant, Jakarta, Indonesia
general@metalaw.id
