“THIN CAPITALIZATION” BECOMES TAX UNFRIENDLY - NEW REGULATIONS
Under Article 18 (1) of Law No. 7 of 1983 on Income Tax (as lastly amended by Law No. 36 of 2008 – “Income Tax Law”), the Minister of Finance (“MOF”) is authorized to determine the debt to equity ratio (“DER”) of corporate taxpayers for the income tax calculation purposes.
Download read moreNEW PENSION AND OLD AGE SECURITY REQUIREMENTS
The Government of Indonesia has recently issued a series of regulations in an attempt to further regulate pension securities and amend the old age security programs in Indonesia,
Download read moreUPDATE ON THE OBLIGATION TO USE RUPIAH AND EXEMPTIONS
As an update to our previous Newsletter regarding Regulation No. 17/3/PBI/2015 regarding the Obligation to Use Rupiah in the Territory of the Republic of Indonesia (“BI Regulation”), Bank Indonesia (“BI”) has issued an implementing regulation regarding the mandatory use of Rupiah under BI Circular Letter No. 17/11/DKSP (“Circular 17”).
Download read moreBANK INDONESIA SETS A NEW LIMIT FOR PURCHASING FOREIGN CURRENCY (US$)
In an attempt to assist the stabilization of the Indonesian currency, Bank Indonesia (BI) changed the limit of the maximum value of foreign currency (US$) purchased through a spot transaction which is done without a specific purpose (underlying documents), from US$ 100,000 per month for each customer/foreign party to US$ 25,000 or equivalent per month for each customer.
Download read moreCONSULTANCY SERVICES COMPANIES - NEW REGULATION
On 15 July 2015, the Indonesian Capital Investment Coordinating Board (Badan Koordinasi Penanaman Modal or “BKPM”) issued a circular letter on the new mechanism and procedures for obtaining Principle License applications, aimed particularly at businesses in the consultancy services sector,
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