Review of implementation of the inclusive framework on base erosion and profit shifting in Indonesia

Haula Rosdina, Maria R.U.D. Tambunan, Edi Slamet Irianto

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

Tax avoidance by multinational enterprises in Indonesia has led to a massive, ongoing loss of tax revenue. A type of tax avoidance known as base erosion and profit shifting (BEPS) has become a global issue and compelled the OECD to take measures by releasing the BEPS Action Plan and launching the BEPS Project. Indonesia declared its commitment to adopt appropriate parts of the outcome of the BEPS Project for developing countries in Indonesia's domestic tax rules, recognized as the Inclusive Framework on BEPS or BEPS Minimum Standards. This article analyses the implementation of the BEPS Minimum Standards in Indonesia and how the government has taken action to counteract tax base erosion. The author considers qualitative research and data collected through a literature study and in-depth interviews. Indonesia is in the process of implementing the BEPS Minimum Standards, as addressing transfer pricing issues and preventing tax treaty abuse are currently particular areas of focus for the government.

Original languageEnglish
Pages (from-to)635-651
Number of pages17
JournalIntertax
Volume47
Issue number6-7
Publication statusPublished - 1 Jan 2019

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