Susy Suryani of Suryani Suyanto & Associates explains how the second round of Indonesia’s Tax Amnesty program works, and analyses how the government can learn from the successes and failures of the initial round in 2016.
May 26 2021
Transfer pricing (TP) on the payment of royalty of intangible properties has always been a significant issue for multinational enterprises (MNEs). There are many challenges that must be faced by companies in the context of an arm s-length assessment, especially in the litigation process in Indonesia.
Royalty payments are often corrected by the tax office due to doubts and an element of suspicion where renumerations for the use of technical know-how to the parties who have a special relationship are considered to be one of the ways to reduce the profits of companies in Indonesia, especially if the company is still in a loss position.