VAT Increases To 12 Percent, IDX Reveals There Will Be An Adjustment Of Share Transaction Tariffs In 2025

Indonesian Capital Market (photo: Antara)

JAKARTA - The Indonesia Stock Exchange (IDX) revealed that there will be adjustments to securities transactions starting early next year in line with the implementation of Value Added Tax (VAT) of 12 percent in 2025.

For information, the increase in VAT 12 percent in 2024 is in accordance with the mandate of Law Number 7 of 2021 concerning Harmonization of Tax Regulations (HPP), where Article 7 paragraph 1 letter a regulates the increase in VAT rates from 11 percent to 12 percent which took effect as of January 1, 2025.

The adjustment is stated in the IDX letter No: S-13561/IDX.KEU/12-2024 regarding Adjustment of Value Added Tax Tariffs (VAT) for 2025.

Director of Trade and Regulation of Exchange Members (AB) Irvan Susandy conveyed that all invoices and tax invoices for Indonesia Stock Exchange services issued as of January 1, 2025, will be adjusted to the amount of VAT rates from the previous 11 percent to 12 percent.

"For Invoices and Tax Invoices for Indonesia Stock Exchange services issued before January 1, 2025, the amount of VAT rates imposed still follows the old provisions with an 11 percent tax rate," he explained.

According to Irvan, further provisions on the adjustment of the amount of VAT rates from the previous 11 percent to 12 percent will follow the Minister of Finance Regulation (PMK) which will be issued later by the Ministry of Finance and the Directorate General of Taxes.

"We urge that payments for bills that have been issued before January 1, 2025 can be completed immediately, in order to avoid the influence of changes in VAT rates which will take effect in 2025," he said.

To note, the adjustment of the VAT rate to 12 percent in 2025 will have an impact on the adjustment of the transaction fee and this tariff change applies to all transactions that are the object of VAT.