Indonesia Signs GIR MCAA; GloBE Data Exchange from 2027
JAKARTA, DDTCNews - The Indonesian Government has officially signed the Multilateral Competent Authority Agreement on the Exchange of GloBE Information (GIR MCAA). This topic is among the subjects reviewed in the national media today, Friday (30/10/2026).
By signing the GIR MCAA, Indonesia, through the Directorate General of Taxes (DGT), will exchange data contained in the GloBE Information Return (GIR) with treaty partners. This instrument is deemed important in supporting the implementation of the global minimum tax according to GloBE rules.
"Indonesia has become a signatory to the GIR MCAA, opening the way for automatic exchange of information (AEOI) of GIR with partner jurisdictions," the DGT explained via its official website.
It should be noted that the GIR is a standard reporting form as provided under the GloBE rules, containing information on the application of the global minimum tax that must be submitted by constituent entities to the director general of taxes.
The GIR serves as an instrument for constituent entities of multinational enterprise groups covered by GloBE to disclose their compliance with global minimum tax obligations.
For reference, a multinational enterprise group will be covered by GloBE if the group's annual turnover reaches EUR750 million based on the consolidated financial statements of the ultimate parent entity (UPE) in two of the four fiscal years preceding the year of the imposition of GloBE.
Under the GloBE rules, each constituent entity is required to file the GIR with the tax authority in the jurisdiction in which it is located. The GIR MCAA introduces a central filing mechanism, whereby a multinational enterprise (MNE) group need only to file the GIR with the jurisdiction in which the ultimate parent entity (UPE) or designated filing entity is located.
"Central filing reduces the compliance burden on MNE groups, as it limits the number of jurisdictions where constituent entities are required to file the GIR," reads the GIR MCAA document released by the OECD.
For tax authorities, the exchange of information in the GIR provides the data required to support compliance supervision in the context of implementing the global minimum tax.
Prior to Indonesia, 40 jurisdictions had already signed the GIR MCAA, including neighbouring countries such as Singapore, Malaysia, Thailand, Hong Kong, Japan, South Korea and Australia.
"With Indonesia's participation, the total number of signatories rises to 41 jurisdictions. For Indonesia, automatic exchange of GIR is scheduled to commence in 2027," the DGT stated.
In addition to the above topic, there are reviews concerning the reduction of penalties for participants of Tax Amnesty Phase II. There are also discussions relating to suboptimal VAT collection, the DGT's advisory to marketplace sellers and other matters.
The following is a comprehensive review of the tax articles.
Implementation of the Global Minimum Tax in Indonesia
Indonesia has already adopted the global minimum tax in accordance with the GloBE rules through MoF Reg. No. 136/2024. Under that MoF Reg., the global minimum tax officially took effect in Indonesia from 2025.
Where a taxpayer becomes subject to GloBE from the 2025 imposition year, the taxpayer is required to register as a GloBE taxpayer no later than 9 months after the end of the first imposition year and to pay the top-up tax in the tax year following the imposition year.
To date, the DGT has identified 22,662 taxpayers belonging to 1,988 business groups indicated to fall within the scope of the global minimum tax rules. However, only 5,757 taxpayers have thus far added their status as a GloBE taxpayer. (DDTCNews)
Presidential Envoy: VAT Collection in Indonesia Not Yet Optimal
Special Presidential Envoy for Climate and Energy, Hashim Djojohadikusumo. is of the view that VAT collection in Indonesia remains suboptimal and does not yet cover all transactions.
According to Hashim, every transaction in the national economy should attract VAT at 11%. However, many transactions still go uncollected for VAT purposes because they are conducted in cash.
"Our country should be super-wealthy and super-strong. However, because our officers have for some time been somewhat weak, state revenues, both recorded and unrecorded, have not been collected," he said. (DDTCNews/Bisnis Indonesia/Kontan)
DGT Urges Marketplace Sellers Not to Raise Prices
The DGT has urged online sellers not to raise the prices of goods sold on marketplaces on the grounds of the collection of Article 22 Income Tax by marketplace providers, which has been fully in effect since 1 October 2026.
DGT Director of Tax Dissemination, Service and Public Relations, Inge Diana, Rismawanti stated that these tax obligations are fundamentally already incumbent upon entrepreneurs, whether they conduct business online or offline, such as through conventional shops.
"It does not mean that you need to raise your prices because tax is now being collected. Because, in fact, this has always been an obligation that should have been fulfilled even without conducting online business or selling online," she said. (DDTCNews)
AHU Directorate General: Penalties on LLCs Yet to File Annual Reports
The Directorate General of General Legal Administration (Administrasi Hukum Umum/AHU in Indonesian) of the Ministry of Law will impose administrative penalties on limited liability companies (LLCs) that have not yet submitted their annual reports for the 2025 period.
In its announcement, Ditjen AHU stated that the annual report submission period has been extended until December 2026. Limited liability companies that have not fulfilled this obligation will receive a written reprimand between 1 and 31 December 2026.
"Administrative penalties in the form of the blocking of access to the SABH system will commence on 2 January 2027 for limited liability companies that have not fulfilled the obligation to submit annual reports for the 2025 period," Ditjen AHU stated. (DDTCNews)
Penalty Reduction Also Available for Tax Amnesty Phase II Participants
Taxpayers participating in the voluntary disclosure programme (Program Pengungkapan Sukarela/PPS in Indonesian), commonly known as Tax Amnesty Phase II, and who have assets that were not or were insufficiently disclosed, still have the opportunity to obtain a reduction in administrative tax penalties.
This facility is provided through the Administrative Penalty Reduction or Nullification (Pengurangan atau Penghapusan Sanksi Administrasi/PSA in Indonesian) Programme, as regulated under the Director General of Taxes Decree Number KEP-239/PJ/2026.
Based on the Administrative Penalty Reduction or Nullification Guidebook, these facilities specifically cover penalties contained in notices of tax assessment (surat ketetapan pajak/SKP) resulting from audits of assets that were not or were insufficiently disclosed by the voluntary disclosure programme participants.
"KEP-239 covers penalties in notices of tax assessment resulting from audits of assets that were not or were insufficiently disclosed by taxpayers participating in the voluntary disclosure programme, with specific deadlines for the issuance of notices of tax assessment and payment," the DGT stated. (Kontan)
75 Tax Court Judge Candidates Undergo Fit and Proper Selection
The Central Committee for the Recruitment of Tax Court Judge Candidates has announced 75 names of tax court judge candidates who have passed the substantive selection stage.
Those candidates who have passed the substantive selection are eligible to participate in the fit and proper selection, which will be held from 2 to 17 November 2026.
"The Fit and Proper Selection...consists of assessments, health and psychiatric tests, psychometric tests and background checks, with the schedule listed in this announcement," reads Announcement Number PENG-3/PHPP/2026. (DDTCNews)