DJP Studies Singapore Refundable Tax Credit for GloBE

Indonesia's Directorate General of Taxes (DJP) announced on 28 November 2025 that it is studying Singapore's refundable tax credit scheme. The initiative aims to facilitate the implementation of the Global Minimum Tax (GloBE) rules in Indonesia. The study is being conducted in Jakarta.

Singapore successfully applied Pillar 2 of the GloBE framework and introduced a refundable investment credit in February 2024. The credit offsets 10‑50 % of qualifying expenditures, including capital spending, wages, training, and logistics costs, to keep high‑quality investment competitive. Singapore's government views the incentive as essential amid aggressive tax and non‑tax offers from rival jurisdictions.

The Singaporean refundable credit resembles the Qualified Refundable Tax Credit (QRTC) defined in GloBE, which can reduce corporate income tax and be claimed up to four years if unused. DJP hopes a similar mechanism will boost investment attractiveness in Indonesia without eroding tax revenues. The policy adaptation remains under further review.