#Harmonization of Tax Regulations (HPP)

Credit Insurance vs. Bad Debt Allowance: Avoiding Distortion in Fiscal Corrections

Differences in the tax treatment of credit insurance and bad debt allowance often trigger fiscal corrections. Read on for the explanation, legal basis, and mitigation measures. 

Apr 1, 2026

Government Commits to Increasing VAT Rate to 12% by 2025

The government ensures that the Value Added Tax (VAT) rate will increase to 12% in 2025, as planned by the government in Law (UU) Number 7 of 2021 concerning Harmonization of Tax Regulations (HPP).

Mar 8, 2024

Carbon Exchange Has Already Been Launched, Carbon Tax Awaits Until 2026

The Indonesia Carbon Exchange is the organizer of carbon trading in Indonesia and is responsible for providing a transparent, regular, fair, and efficient trading system.

Oct 2, 2023

MSME Final Income Tax Facility of 0.5% is Expanded

Previously, this facility was only used by individuals and corporate taxpayers in the form of Cooperatives, Limited Partnerships (CV) and Limited Liability Companies (PT). However, now it can be enjoyed by Village-owned Enterprises (BUMDes) or Joint Village-owned Enterprises (BUMDESma).

Jan 10, 2023

Repatriation of Tax Free Dividends, Term and Investment Instruments Determined

The government determines the terms and instruments of investment to accommodate dividends or other income from overseas received by domestic corporate and individual taxpayers, to be invested domestically, or repatriation.

Dec 30, 2022

New Regulation Issued, Check Out the List of Benefits in Kind Exempted from Income Tax

The government emphasizes the types of compensation in benefit in kind that are subject to or exempted from the imposition of income tax.

Dec 27, 2022

Complete List of Goods & Services Exempted from VAT, Import Duty, and STLG

The government released the latest regulation that includes a complete list of goods and services that are eligible for Value Added Tax (VAT), Sales Tax on Luxury Goods (STLG), and import duty facilities.

Dec 26, 2022

10 Important Points in New VAT Regulations

There are 10 important points in the VAT and STLG provisions in the implementing regulations for the Law on the Harmonization of Tax Regulations (PP Nomor 44 Tahun 2022).

Dec 13, 2022

Once More Delayed, Government Decides to Implement the Carbon Tax in 2025

Previously, the government had twice deferred the implementation of the policies regulated in Law Number 7 of 2021 on the Harmonization of Tax Regulations (HPP).

Oct 14, 2022

Until August, Additional Tax Revenue from the HPP Law Amounted to IDR 31.15 trillion

The policy that contributed the most to additional state revenue came from VDP, which succeeded in increasing revenue from final income tax payments by IDR 61 trillion.

Oct 7, 2022

Carbon Tax Implementation Continues to Wait for Momentum

Currently, the government still needs to calibrate the implementation of the carbon tax, given that Indonesia's economic condition is still fragile.

Sep 15, 2022

HPP Law Becomes the Government's Backbone to Close Loop Holes in The 2023 Tax Revenue

In the Financial Note and the 2023 State Revenue and Expenditure Budget Draft, the government states that the HPP Law can answer tax challenges due to the development of digital-based business activities.

Aug 30, 2022

The Constitutional Court Denies Judicial Review Request of the HPP Law

The rejection was stated in decision number 19/PUU-XX/2022 and was read out on Thursday (7/7) by nine constitutional judges.

Jul 8, 2022

Carbon Tax Road Map Has Been Completed

Previously, the carbon tax policy had been regulated in the Law on the Harmonization of Tax Regulations (HPP). In the regulation, the imposition of a carbon tax is actually scheduled to take effect from 1 April 2022.

Jun 23, 2022

The VAT Rate on Tobacco Products Set at 9.9%

The rate could be even higher, at 10.7%, if the government implements a VAT rate of 12% by 2025 at the latest, as regulated by Article 7 of the HPP Law.

Apr 20, 2022

PMSE VAT Provisions are Adjusted to the HPP Law

In general, the provisions related to the PMSE VAT collection are still relatively the same as the old rules. Including the criteria for digital companies that sell taxable intangible goods or taxable services that are appointed as PMSE VAT collectors.

Apr 18, 2022

Sale and Purchase of Used Vehicles Subject to VAT Special Rate of 1.1%

Starting from 1 April 2022, every sale of a used motor vehicle will be subject to a Value Added Tax (VAT) of 1.1% of the selling price. This value is 10% of the current VAT rate of 11%.

Apr 12, 2022

These 7 Types of Services are Eligible For VAT Rate Reductions

Apr 7, 2022

Procedures for the Imposition and Reporting of VAT on Self-Building Activities

The Minister of Finance confirmed the increase in the VAT rate as of 1 April 2022 and the taxation procedures and special reporting on self-building activities for residents and/or places of business with a building area of ??at least 200 square meters.

Apr 6, 2022