Global Minimum Tax Takes Effect, Indonesia Mulls QRTC Incentives

JAKARTA – The global minimum tax (GloBE) is set to take effect in 2025, prompting the Directorate General of Taxes (DJP) to review its tax‑incentive regime. Director General Bimo Wijayanto said the government is evaluating qualified refundable tax credit (QRTC) or cash subsidies as alternatives.

Traditional incentives such as tax holidays can lower an entity’s effective rate below the 15 % GloBE floor, triggering a top‑up tax liability. QRTC is a refundable tax credit paid in cash over four years and is treated as an addition to GloBE‑covered profit rather than a reduction of covered taxes.

Adopting QRTC would likely lessen the additional tax burden on taxpayers while preserving Indonesia’s attractiveness to foreign investors. The move also helps the country meet OECD commitments without eroding the effectiveness of fiscal incentives.