BEPS Implementation in

Indonesia
Directorate of International Taxation
Directorate General of Taxes

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 CURRICULUM VITAE

Name : Prof. Dr. Poltak Maruli John Liberty Hutagaol, M.Acc.,

M.Ec.(Hons.), S.E., Ak., C.A.
Place/Date of Birth : Jakarta, 27 November 1965
Office Address : Jalan Gatot Subroto Kav. 40-42, Jakarta

I. Job Title
 Head of Tax Office Foreign Direct Investment One (2009-2011)
 Advisor for Tax Services (2011-2011)
 Advisor for Tax Law Enforcement (2011-2012)
 Director of Tax Regulation II (2012-2016)
 Director of International Taxation (2016-now)
 Indonesian Competent Authority, 2012 – now
 Head of Indonesian Delegation for MAP, 2012 – now
II. Education
 Bachelor of Economics (University of Brawijaya, Malang) – 1988
 Master of Economics in Accountancy (University of Macquarie, Sydney) – 1994
 Master of Economics by Research (University of Macquarie, Sydney) – 1995
 PhD in Business Management (University of Padjadjaran, Bandung) – 2004
III. Professional Expertise
 Professor in Taxation (PERBANAS), 2008 – now
 Chairman of Board Advisor of ATPETSI, 2018 – 2022
 Chairman of KAPj IAI, 2018 – 2020
15 BEPS Actions

Action 5 Action 15
Action 7 Action 13
Action 1 Action 3 Countering Harmful Tax Action 11 Developing a
Preventing the Transfer Pricing
Addressing Designing Practices More Multilateral
Artificial Measuring Documentation
the Tax Effective Effectively, Taking into Instrument to
Avoidance of and and Country-by-
Challenges of Controlled Account Transparency Modify
Permanent Monitoring Country
the Digital Foreign Company and Substance Bilateral Tax
Establishment BEPS Reporting
Economy Rules Treaties
Status

Action 2 Action 4 Action 6 Action 8-10 Action 12 Action 14

Neutralizing the Limiting Base Preventing the Aligning Mandatory Making Dispute
Effects of Hybrid Erosion Granting of Transfer Disclosure Resolutions
Mismatch Involving Treaty Benefits Pricing Rules Mechanisms
Arrangements Interest in Inappropriate Outcomes
More Effective
Deductions and Circumstances with Value
Other Financial Creation
Payments
Source: http://www.oecd.org/tax/beps-2015-final-reports.htm
 15 BEPS
Actions 1 Digital
Economy

Coherence Substance Transparen

2 Hybrid 6 Prevention of cy
Mismatch Treaty Abuse
Arrangements 7 Avoidance of PE 11 Methodologies
3 Controlled Status and Data Analysis
Foreign Company 8 TP: 12 Mandatory
4 Interest Intangibles 13 TPDisclosure
Deduction 9 TP: Risk and Capital Documentation
Rules
5 Harmful Tax 10 TP: High-risk 14 Dispute
Practices Transactions Resolution
15 Development of Multilateral Instrument

Minimum Standards
Implementation of BEPS
5
Harmful Tax Practices – 2018 Peer Review Report on Preferential Regimes
Indonesia has been reviewed “out of scope” in terms of:
1. public/listed company regime;
2. investment allowance regime;
3. special economic zone regime; and
4. tax holiday regime.

Harmful Tax Practices – 2018 Peer Review Report on the Exchange of Information on Tax
Rulings
Indonesia:
5. has met all of the terms of reference for the information gathering process and no
recommendations are made;
6. has the necessary legal basis for spontaneous exchange of information – a process for
completing the templates in a timely way and has completed all exchanges – and has met
all of the terms of reference for the exchange of information process which can be met in
the absence of rulings being issued in practice and no recommendations are made; and
3. does not offer an intellectual property regime for which transparency requirements under
the Action 5 Report were imposed.
Implementation of BEPS
6
BEPS 6 recommends the adoption of the following options to prevent treaty
abuse:
1. preamble statement;
2. principal purposes test; and
3. simplified limitation on benefits.
These recommendations have been covered in the MLI and Indonesia has
chosen to adopt the preamble statement and the PPT.

Indonesia has been reviewed in the “Prevention of Treaty Abuse – Second

Peer Review Report on Treaty Shopping” published on 24 March 2020 and no
jurisdiction has raised any concerns about their agreement with Indonesia.
Implementation of BEPS
13

Country-by-Country
Reporting
Implementation in Indonesia
by the MoF Regulation No.
213/PMK.03/2016
Implementation of BEPS
14

BEPS 14
Recommendations
Recommendations of tax-treaty related
measures have been covered in the
MLI

Implementation in Indonesia by the

MoF Regulation No. 49/PMK.03/2019
 Implementation of BEPS
2
Follow-up of the OECD 1999 Partnership Report with more
emphasis on fiscally-transparent entities other than partnership,
such as trust
Recommendations of tax-treaty related
measures have been covered in the MLI

Domestic measures (defensive rules) are being

covered in the in-progress amendment of the
Income Tax Law
Implementation of BEPS
7

BEPS 7
Recommendations
Recommendations of tax-treaty related
measures have been covered in the
MLI

Implementation in Indonesia by the

MoF Regulation No. 35/PMK.03/2019
Implementation of BEPS
15
24 November 2016
Publication of “Multilateral Convention to Implement Tax Treaty Related
Measures to Prevent Base Erosion and Profit Shifting”.

7 June 2017
Indonesia signed the MLI.

13 November 2019
Indonesia ratified the MLI by the Presidential Decree No. 77 of 2019.

28 April 2020
Indonesia deposited its instrument of ratification to the OECD as the
Depositary.

1 August 2020
The MLI shall enter into force for Indonesia.
Implementation of BEPS
3

BEPS 3
Recommendations
Implementation in Indonesia by
the MoF Regulation
107/PMK.03/2017 as amended by
the MoF Regulation No.
93/PMK.03/2019
Implementation of BEPS
4

BEPS 4
Recommendations
Recommendations have been covered in “Transfer
Pricing Guidance on Financial Transactions: Inclusive
Framework on BEPS: Actions 4, 8-10” published on 11
February 2020

Implementation in Indonesia by the MoF Regulation No.

169/PMK.010/2015
Implementation of BEPS 8-
10

BEPS 8-10
Recommendations
Recommendations have been
covered in “Transfer Pricing
Guidance on Financial Transactions:
Inclusive Framework on BEPS:
Actions 4, 8-10”
published on 11 February 2020
Implementation of BEPS
11
As part of the ongoing work under Action 11, the Inclusive Framework is
developing new and enhanced datasets and analytical tools which can assist
in measuring and monitoring the fiscal and economic impacts of tax avoidance
and the effects of the implementation of the BEPS measures.

In particular, the Inclusive Framework is working to improve the quality and

expand the range of information available to analyse BEPS. The Corporate Tax
Statistics database, which was launched in January 2019, has assembled a
variety of data relevant to the analysis of BEPS and of corporate taxation more
generally. In developing the database, the OECD worked closely with
members of the Inclusive Framework and other jurisdictions willing to
participate, and as a result, the first edition includes information for more than
100 jurisdictions.
Implementation of BEPS
12

BEPS 12
Recommendations
Recommendations are being
covered in the in-progress
amendment of the Income
Tax Law
 Implementation of BEPS
1
September 2013
The establishment of the Task Force on Digital Economy as a subsidiary body of the Committee on Fiscal Affairs.

October 2015
Publication of the BEPS Action 1 Final Report: withholding taxes, significant economic presence, and equalisation
levy.

March 2018
Publication of “Tax Challenges Arising from Digitalisation – Interim Report 2018”.

January 2019
Publication of “Addressing the Tax Challenges of the Digitalisation of the Economy – Policy
Note”: Pillar One: user participation, marketing intangibles, and significant economic presence;
and
Pillar Two (Global Anti-base Erosion): income inclusion rule, undertaxed payments rule, switch-over rule, and
subject-to-tax rule.

November 2019
Publication of “Secretariat Proposal for a Unified Approach under Pillar One”.

January 2020
Outline of the Architecture of a Unified Approach on Pillar One.
 THANK YOU

Ministry of Finance of the Republic of Indonesia

Directorate General of Taxes