- Indonesia’s VAT rate is expected to increase to 12 percent in 2025.
- This is a 1 percentage point increase from the current 11 percent VAT rate.
- The adjustment aligns with Indonesia’s Tax Regulation Harmonization Law, enacted in 2022.
- The phased VAT increase began with a rise from 10 percent to 11 percent on April 1, 2022.
- The 12 percent VAT rate is expected to be implemented by January 1, 2025.
Source: aseanbriefing.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
