Transfer Pricing Compliance
Transfer pricing in Indonesia is a method that sets the price for transaction and transfer between related parties, which can be between a company and a company or a company and an individual. The arm’s length principle must be implemented as the standard of transfer pricing method.
Transfer Pricing Advisory
Since transfer pricing can be used to transfer assets and income between jurisdictions, all with favourable tax rates, tax authorities have now considered it a significant issue. With that being said, Indonesian tax authorities attempt to tackle the challenge by implementing detailed transfer pricing regulations and complex documentation requirements, among others.
