Indonesia identifies 5,600 taxpayers for Global Minimum Tax

Indonesia's Directorate General of Taxes (DJP) has identified approximately 5,600 taxpayers subject to the Global Minimum Tax (GMT) framework. This 15% minimum tax rate, effective from 2025, aims to prevent multinational corporations from shifting profits to low-tax jurisdictions under the OECD's Pillar 2 and Global Anti-Base Erosion (GloBE) rules.

Taxpayers are registering voluntarily through the Coretax administrative platform. Director General of Taxes Bimo Wijayanto noted that these taxpayers are spread across various regions and are not exclusively managed by the Large Taxpayers Office (LTO).

Separately, Bimo Wijayanto addressed Indonesia's tax ratio, suggesting that the current non-taxable income threshold (PTKP) of Rp54 million per year is relatively high compared to OECD nations. He noted that while the threshold is moderate compared to ASEAN neighbors, it contributes to a lower national tax ratio. The government is currently reviewing an ideal PTKP level to balance state development funding and the 3% budget deficit target with the need to maintain public purchasing power.