Treatment of Tax Planning in Indonesia

There is no such a clear definition about tax plannning, agresive tax planning, acceptable tax
avoidance, dan unacceptable tax avoidance (aggressive tax planning).

Tax Payer assumes that as long as the tax avoidance scheme is not prohibited in the specific laws
of taxation, then that is legal. But on the other hand, the government also concerned that the tax
provision should not abused by the Tax Payer that would detrimental to state revenues.

Anticipating the the avoidance of this type of tax, the Income Tax Law already contains
the provisions of Article 18 paragraph (2). This provision known as an anti-avoidance rule.
Furthermore, Article 18 paragraph (2) of the Income Tax Law are as follows:

Menteri Keuangan berwenang menetapkan saat diperolehnya dividen oleh Wajib Pajak
dalam negeri atas penyertaan modal pada badan usaha di luar negeri selain badan usaha yang
menjual sahamnya di bursa efek, dengan ketentuan sebagai berikut:
* besarnya penyertaan modal Wajib Pajak dalam negeri tersebut paling rendah 50% (lima
puluh persen) dari jumlah saham yang disetor; atau
* secara bersama-sama dengan Wajib Pajak dalam negeri lainnya memiliki penyertaan
modal paling rendah 50% (lima puluh persen) dari jumlah saham yang disetor.

The Minister of Finance may determine when the dividend are obtained by domestic Tax Payer so
there is no chance to delay the recognition of profits.

explanatory rules:
Peraturan Menteri Keuangan Nomor 256/PMK.03/2008 tentang Penetapan Saat Diperolehnya
Dividen Oleh Wajib Pajak Dalam Negeri Atas Penyertaan Modal Pada Badan Usaha Di Luar
Negeri Selain Badan Usaha Yang Menjual Sahamnya Di Bursa Efek.
Peraturan Menteri Keuangan ini mencabut ketentuan sebelumnya yaitu Keputusan Menteri
Keuangan Nomor 650/KMK.04/1994 tentang Penetapan Saat Diperolehnya Dividen Atas
Penyertaan Modal Pada Badan Usaha Di Luar Negeri Yang Sahamnya Tidak Diperdagangkan Di
Bursa Efek.
Nowadays, Directorate General of Tax (DJP) is reviewing the (mandatory disclosure rules/MDR)
a 12th action of BEPS (Base Erotion and Profit Shifting). This rule will require the taxpayers to
report their tax planning scheme to the tax authority. This rule has been implemented by UK.

Sumber :
The Practice of Mandatory Disclosure in Indonesia: Determinants And Impact (Andian Ari
Istiningrum, 2016)