Indonesia has posted positive economic growth in the last few years, even in the face of the recent global economic slowdown. The country recorded a GDP growth rate of 5% in 2016, on par with the previous two years. Tax income is a key component to this growth, allowing the state to invest in various sectors of the economy and contribute to...
The Indonesian government has set a target tax-to-GDP ratio of 16% by 2019, up from the current average of 12-13%. While ambitious, the goal is not unattainable given that neighbouring countries Vietnam, Malaysia and Thailand have tax-to-GDP ratios averaging of 13% and 17%. However, the target can only be reached by widening and stabilising...
The Indonesian tax system is based on three primary laws: the General Tax Provisions and Procedures ( Ketentuan Umum dan Tata Cara Perpajakan, KUP) Law, the Income Tax Law, and the Value-Added Tax (VAT) and Luxury Sales Tax (LST) Law. These laws are routinely amended in order to accommodate the country’s rapidly changing business environment, as well as to support the...
The Indonesian tax system continues to evolve but for several years has been mainly based on three primary tax laws: the General Tax Provisions and Procedures Law, the Income Tax Law, and the Value-Added Tax (VAT) and Luxury Sales Tax (LST) Law. These tax laws are routinely amended to accommodate the country’s rapidly changing business...
The Indonesian tax system continues to evolve but for several years has been mainly based on three primary tax laws – the General Tax Provisions and Procedures Law, the Income Tax Law, and the Value-Added Tax (VAT) and Luxury Sales Tax (LST) Law. These tax laws are routinely amended to accommodate the rapidly changing business environment and to...
The Indonesian tax system is mainly based on three tax laws – the General Tax Provisions and Procedures Law, the Income Tax Law, and the Value-Added Tax (VAT) and Luxury Sales Tax (LST) Law. The tax reforms, which started in 2008, covering amendments of the above laws, were completed in 2010. Subsequent to the commencement of the new laws, the...
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