The Indonesian Director General Of Taxation Releases Regulation No.69/2010 Concerning Advance Pricing Agreements
Jakarta, January 2011 - The Director General of Taxation (DGT) of Indonesia has released Regulation (No.69/2010) outlining the procedural requirements to be followed by taxpayers in order to obtain the benefits of an Advance Pricing Agreement (APA).
- (1888PressRelease) January 14, 2011 - The regulation was dated 31st December 2010 but only issued on 4th January 2011. The Regulation No.43/2010 dated 6th September 2010 confirmed the possibility for taxpayers to apply for an APA, but there were no detailed rules provided at that time regarding the APA procedures to be followed.
The release of Regulation No.69/2010 is significant in that it indicates that the DGT is now serious in its encouragement for taxpayers to manage their transfer pricing risks in Indonesia through the APA mechanism.
The regulation mainly explains the various stages of the APA process:
• Pre-lodgment meeting.
• Submission of APA formal application.
• Discussion of the terms of the APA.
• Preparation of the formal APA agreement.
• Implementation and evaluation on APA.
Interestingly, Regulation No.69/2010 only provides for APAs of three years' duration, although the terms can be rolled back to prior years as well if those prior years have not been subjected to tax audit. Furthermore, Regulation No.69/2010 provides that the information/data/records submitted to the DGT as part of the APA application process must not be disclosed by the DGT to other parties. The regulation also provides that, if an APA cannot be finalized, the DGT should return all of the information/data/records to the taxpayer and that the DGT is prohibited from using the information/data/recordsin the future in the conduct of any tax audits or investigations of the taxpayer. The inclusion and implementation of such a confidentiality provision has been critical for the success of APA programs in many other tax jurisdictions. Transfer Pricing Associates has recently been nominated as one of the leading transfer pricing firms in Indonesia for the 2010 year by the prestigious International Tax Review magazine.
For more details on our services in Indonesia and the rest of Asia, please contact:
Douglas Fone
d.fone ( @ ) tpa-global dot com
+61 (0)2 8249 8145
Steven Carey
s.carey ( @ ) tpa-global dot com
+852 9516 2830
Dr Sowmya Varadharajan
s.varadharajan ( @ ) tpa-global dot com
+65 9233 6584
About Transfer Pricing Associates:
Transfer Pricing Associates is the leading independent provider of global transfer pricing and valuation services and part of the Transfer Pricing Associates Global group. The Transfer Pricing Associates Global group is an independent and specialist provider of expert transfer pricing, tax valuation and customs services, headquartered in Amsterdam and with our own offices and coverage in over 30 countries around the world. Transfer Pricing Associates provides high quality transfer pricing advice and assistance to multinationals of all sizes, wherever they are located.
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