Indonesia: New regulations for transfer pricing documentation, MAPs, APAs
The new regulations are comprehensive and covers a number of regulations previously issued by various regulating bodies.
New regulations for transfer pricing documentation, MAPs, APAs
New regulations (PMK 172) for transfer pricing documentation, mutual agreement procedures (MAPs) and advance pricing agreements (APAs) provide guidance relating to:
- Formal requirements for transfer pricing documentation
- Contents of the transfer pricing documentation
- Minor changes to MAP and APA regulations
KPMG observation
PMK 172 is comprehensive and covers a number of regulations previously issued by various regulating bodies. Most existing regulations have not been changed significantly, but of note is the introduction of a long-overdue mechanism to resolve domestic double taxation on domestic related-party transactions. On the other hand, some of the new regulations (such as the definition of a related party) may not fully align with OECD practices and may give rise to additional disputes. Also, no safe harbors (e.g., for routine services or distribution functions) are provided for yet. Finally, multilateral APAs are not a possibility.
Read a February 2024 report [PDF 373 KB] prepared by the KPMG member firm in Indonesia
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