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TAX - JAKARTA. Indonesia has officially implemented a global minimum tax, in line with the issuance of the Minister of Finance Regulation (PMK) Number 136 of 2024 concerning the imposition of a global minimum tax that will take effect in the tax year 2025.
The implementation of the global minimum tax provision is part of the Pillar Two agreement initiated by the G20 and coordinated by the OECD, and is supported by more than 140 countries.
Currently, there are over 40 countries that have implemented these provisions, with the majority of countries applying them in 2025.
Febrio Nathan Kacaribu, Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance said that the global minimum tax is a manifestation of the efforts of countries around the world, including Indonesia, that have been jointly pursued for at least the last five years.
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This initiative aims to minimize unhealthy tax rate competition (race to the bottom) by ensuring that multinational companies with a minimum global consolidated turnover of € 750 million pay a minimum tax of 15% in the country where the company operates.
"This provision does not impact individual taxpayers and MSMEs," Febrio said in his official statement on Thursday (16/1).
Febrio emphasized that the implementation of the global minimum tax reaffirms the government's commitment to creating a healthier and more competitive investment climate.
Through this policy, tax is no longer the main factor in determining the destination country for investment. With this provision, tax evasion practices such as through tax havens can be prevented.
"We welcome this agreement because it is very positive in creating a fairer global taxation system," Febrio continued.
In line with the global agreement, this provision applies to corporate taxpayers who are part of a multinational company group with a minimum global consolidated turnover of € 750 million.
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The aforementioned taxpayers will be subject to a global minimum tax rate of 15% starting from the tax year 2025. If the effective tax rate is less than 15%, the taxpayer must make additional tax payments (top up) no later than the end of the following tax year.
For example, for the tax year 2025, the estimated amount of tax is to be paid no later than December 31, 2026.
Regarding the obligation to report the global minimum tax, taxpayers are given a maximum of 15 months after the tax year ends.
Specifically, in the first year that taxpayers fall under this provision, the government provides leniency for taxpayers to report, which is no later than 18 months after the tax year ends.
For example, if a taxpayer falls under this provision in the tax year 2025, the first report is made no later than June 30, 2027.
Subsequently, for the tax year 2026, reporting is done no later than March 31, 2028. The provisions regarding the form of forms, filling procedures, payment, and reporting of annual notification letters are determined by the Director General of Taxes.
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In implementing the global minimum tax, the government still pays attention to the investment climate in Indonesia. Therefore, sectors that will drive economic growth in the future will maintain their competitiveness through targeted and measurable incentives.
"Through synergy with countries around the world, the implementation of the global minimum tax becomes an important milestone in reforming a more inclusive global taxation system and supporting sustainable economic growth," he said.
Febrio emphasized that the government is optimistic that this step will not only increase fairness in the tax system, but also strengthen the competitiveness of national investment amid global challenges.
