Indonesia Awaits OECD Guidance on Substance‑Based Tax Incentives

The Indonesian government is awaiting the OECD’s draft on substance‑based tax incentives, specifically the Qualified Revenue Tax Credit (QRTC), under the global minimum tax framework. International Tax Director of the Tax Office, Mekar Satria Utama, noted that QRTC could keep the minimum tax rate above 15 % and is still under consideration for adoption. Authorities also see potential benefits in adopting Amount B of Pillar 1, which is included in the OECD Transfer Pricing Guidelines.

For the implementation of Value‑Added Tax on digital services (PPN PMSE), the Directorate General of Taxes has appointed five foreign digital firms—Notion Labs, Roblox, Mixpanel, MEGA Privacy, and Scorpios Tech—as tax collectors starting October 2025, while removing Amazon Services Europe from the list. Projected PPN PMSE revenue is estimated at IDR 8.54 trillion through October 2025.

In 2024, the Tax Office issued 45 heavy disciplinary decisions, including 39 dismissals of civil servants who did not resign voluntarily. Meanwhile, the Director General of Customs, Djaka Budhi Utama, reaffirmed a commitment to improve performance after a warning from the Finance Minister. These measures aim to boost compliance and public confidence in the agencies.