Rooted into Indonesia’s income tax regulatory framework is the authority of the Minister of Finance (the “MOF”) to determine the debt-to-equity ratio (“DER”) for corporate taxpayers. Such is contained under Article 18 (1) of Law No. 7 of 1983 regarding Income Tax, as lastly amended by Law No. 36 of 2008 (the “Income Tax Law”).
Minister of Finance Regulation No. 158/PMK.010/2015 regarding Criteria of Art Services and Entertainment that are Exempted from Value-Added Tax (“Regulation”) was recently issued to provide exemptions from value-added tax for artists and entertainers in providing their services.