Indonesia officially imposes global minimum tax or global anti-base erosion rules (GloBE) starting January 1, 2025 in accordance with The Regulation of The Minister of Finance Number 136 of 2024. GloBE is an additional tax imposition developed by the OECD/G20 that aims to ensure that multinational companies pay a minimum level of tax on their income in each jurisdiction in which they operate. In accordance with Article 2 GloBE applies to constituent entities of the multinational corporation group that have an annual gross turnover of at least 750 million euros in at least 2 (two) of the 4 (four) fiscal years preceding the fiscal year in which GloBE applies.
Government prepares 3 annual tax returns for the implementation of the global minimum tax, this is regulated in Article 65 of Regulation of The Minister of Finance Number 136 of 2024. It is explained that the annual income tax return in the context of implementing GloBE consists of the GloBE annual income tax return, the DMTT annual income tax return, and the UTPR annual income tax return. GloBE annual income tax return is a report used by the parent entity which is a domestic tax subject to report the calculation and/or payment of taxes, tax objects and/or non-tax objects, assets and liabilities in accordance with GloBE, while DMTT annual income tax return is a report used by constituent entities of domestic tax subjects to report additional tax liabilities based on DMTT, and UTPR annual income tax return is a report used by constituent entities of domestic tax subjects to report additional liabilities based on UTPR.
GloBE tax return for fiscal year of 2026, the GIR and notification must be submitted no report than March 31, 2028. In fiscal year 2027, the annual income tax return is submitted no report than April 30, 2028 and the due date for payment of additional tax for 2026 is March 31, 2028, and for fiscal year of 2028, the GIR and notification are again submitted by March 31, 2029, while the GloBE annual income tax return for 2028 must be reported by April 30, 2029, and a receipt will be given after the reporting is completed.
By Olina Rizki Arizal – Partner TBrights
TBrights is a Tax Consultant in Indonesia which is now an Integrated Business Service in Indonesia that can provide comprehensive tax and business services.
Reference:
- The Regulation of The Minister of Finance Number 136 of 2024 Global Minimum Tax Imposition Based on International Agreement
