Minister Of Finance Sri Mulyani: Global Minimum Tax Implementation Encourages A Healthier Investment Climate

JAKARTA - Finance Minister Sri Mulyani Indrawati stated that the implementation of a global minimum tax (GMT) aims to encourage a more competitive and healthy investment climate.

"The government continues to improve the investment climate to be more competitive and healthy, by issuing Minister of Finance Regulation (PMK) 136 of 2024 concerning Global Minimum Taxes," Sri Mulyani said at a press conference on the Financial System Stability Committee (KSSK) in Jakarta, quoted by Antara, Saturday, January 25.

Through this PMK, the Government imposes a minimum tariff of 15 percent for corporate taxpayers who are part of a multinational corporate group with a global consolidated turnover of at least 750 million euros. The policy takes effect from 2025.

"With this, companies that are included in the scope of taxpayers and take advantage of the tax holiday facility will be subject to additional domestic minimum tax according to PMK 69/2024," said the Minister of Finance.

The GMT policy is a Pillar 2: Global Anti Base Erosion (GLOBE) agreement by the G20 and coordinated by OECD.

Currently, there are more than 40 countries that have implemented these provisions, with the majority of countries implementing them in 2025. Indonesia also implemented the policy.

Taxpayers who are included in the provisions will be subject to a minimum global tax with a tariff of 15 percent starting the 2025 tax year.

In terms of effective tax rates of less than 15 percent, taxpayers must make additional tax payments (top ups) no later than the end of the next tax year. For example, for the 2025 fiscal year, the estimated tax amount is paid no later than December 31, 2026.

Regarding the obligation to report global minimum taxes, taxpayers are given no later than 15 months after the end of the tax year.

However, specifically for the first year of implementing GMT for taxpayers, the Government provides concessions for reporting, which is no later than 18 months after the tax year ends.

For example, if taxpayers are included in the GMT coverage in the 2025 fiscal year, the first reporting will be carried out no later than June 30, 2027. For the next tax year (2026), reporting will be carried out no later than March 31, 2028.

Provisions regarding the form of forms, procedures for filling, payment, and reporting annual notification letters are determined by the Director General of Taxes.

The government will also disburse incentives to sectors that drive economic growth in order to maintain competitiveness.