Introduction - Tax Regimes in Indonesia

The complexity of Indonesia's tax regime appears to have stabilized, as compared with the results from 2014 when over half of the respondents believed the tax environment had become more complicated. Wide-ranging tax reform is on the horizon in Indonesia however as new tax laws are scheduled to be introduced in 2018 that will cover general taxation and administration, personal and corporate income tax, and VAT. Implementation of the reform is likely to be accompanied by an increase in the complexity of Indonesia's tax environment. "Complexity" means the perceived level of difficulty in interpreting and understanding the tax law and rules in the relevant jurisdictions*.

Given the complex, unpredictable and inconsistent tax environments that many respondents' companies are operating in, relationships with tax authorities are key to managing their tax affairs and mitigating risks.