Domestic corporate taxpayers ("Corporate Taxpayers") who invest in the City of Nusantara (Ibu Kota Nusantara "IKN") and/or certain regions of Kalimantan as part of the IKN economic superhub ("Partner Regions") are entitled to secure corporate income-tax reduction facilities ("Tax Reductions") upon meeting the applicable minimum investment threshold of Rp. 10 billion. While Tax-Reduction-eligible investments in IKN comprise three main categories (i.e. Infrastructure and Public Services, Economy Generation and Other Business Sectors), Tax-Reduction-eligible investments in Partner Regions only cover Infrastructure and Public Services.

Various new tax administration services that will utilize the New Identification Numbers have been introduced, including: 1) E-registrations; 2) Issuance of withholding certificates and reporting of Article 21/26 Income Tax returns (e-Bupot 21/26); and 3) Issuance of withholding certificates and reporting of Unified Article 21/26 Income Tax returns (e-Bupot Unifikasi). Explanations of these and other new types of services will be gradually introduced to the general public

As Indonesia has ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting ("Multilateral Convention"), Indonesia the country has now expanded the list of reservations and notifications that have been made by Indonesia to the Multilateral Convention ("Reservation and Notification List") in relation to said Multilateral Convention. In this regard, any changes that are made to the Reservation and Notification List shallshould be notified in writing or in accordance with the mechanism outlined under relevant international agreements and applicable Laws.Regulation No. 63 of 2024 on Amendment to Presidential Regulation Number 77 of 2019 concerning Ratification of Multilateral Convention To Implement Tax Treaty Related Measures To Prevent Base Erosion And Profit Shifting Profit ("Amendment") has now clarified that in conditions where there are changes to the List of reservations and Indonesia's notification on its reservations, these changes must be conveyed through a written statement or following the procedures stipulated in international agreements and in accordance with regulations legislation

Three forms of exemptions to payable Rural and Urban Land and Building Tax (Pajak Bumi dan Bangunan Pedesaan dan Perkotaan "PBB-P2") for the 2024 tax period are now available for taxpayers in relation to PBB-P2 objects that meet certain criteria, and encompass 100% and 50% exemption rates, as well as exemptions in certain amounts that will aim to prevent increases in the PBB-P2 rate that exceed 25%. Moreover, Taxpayers are entitled to submit applications to pay off their PBB-P2 in installments before 31 July 2024. Said installment payments are only available for PBB-P2 which must be settled during the 2024 tax year and arrears that date from the 2013 to 2023 tax years

In a bid to support the mandatory placement of foreign export proceeds (Devisa Hasil Ekspor "DHE") deriving from natural resources (Sumber Daya Alam "SDA"), any incomes that are received or obtained by exporters (either individuals or business entities) from the placement of DHE SDA into certain monetary and/or financial instruments (collectively referred to as "Instruments") in Indonesia will be subject to the imposition of final PPh. In this regard, said imposition will only apply to DHE SDA, while the eligible Instruments must fulfill the following criteria: 1) Must be classified as banking, financial and/or monetary instruments; 2) Relevant funds must derive from DHE SDA; 3) Must have a minimum placement period of one month; and 4) Must not have been traded through the secondary market (i.e. relevant exporters may not sell or transfer the ownerships of Instruments to other parties)

Income Tax (Pajak Penghasilan "PPh") of type Article 21 (PPh Pasal 21 "Article-21 PPh") for certain employees who reside within the Ibu Kota Nusantara ("IKN") area and who have secured Taxpayer Identification Numbers (Nomor Pokok Wajib Pajak/NPWP) by registering with the IKN tax service office, is to be borne by the government. Furthermore, various other tax incentives that range from 85% to 350% are also available for certain types of corporate PPh, gross incomes and PPh on transfers of rights to land and/or buildings

The Amendment has now clarified that relevant importers are first required to deposit collateral with the relevant customs-and-excise office head. Said collateral may take one of the following forms: 1) Cash; 2) Bank guarantees; 3) Guarantees that are provided by insurance companies; 4) Guarantees that are provided by the Indonesian Export Financing Agency (Lembaga Pembiayaan Ekspor Indonesia/LPEI); 5) Guarantees that are provided by guarantor agencies; 6) Corporate guarantees; and/or 7) Written guarantees

In addition to the existing five types of premium objects that can be awarded to any individuals, groups of people or work units that contribute to the handling of customs violations, premium objects can now also derive from the following: 1) Administrative fines for criminal violations that are not subject to investigations; or 2) Administrative fines for criminal violations for which the relevant investigations are suspended in the interests of state revenue

While core provisions that address the securing of legal attorney ("Attorney") permits through the tax court ("Permits") have been retained, various documents that are required to be submitted electronically via the tax courts official website along with applications for the securing of Permits should now take the form of soft copies of original documents. Moreover, the following additional documents should now be submitted in order to ultimately secure the aforementioned Permits: 1) Family card (kartu keluarga), in the event that an application is being submitted by a wife whose rights and fulfillment of obligations are combined with those of her husband; and 2) Statement letter declaring that all submitted documents are correct and align with the original copies of the relevant documents.

the Draft Regulation introduces a number of revisions, which include the enforcement of post-border and border area supervision in relation to certain types of consumer goods, sources of ionizing radiation and nuclear materials