- Indonesian Finance Minister Sri Mulyani Indrawati confirmed that the Value-Added-Tax (VAT) rate will increase to 12% from 01 January 2025
- The decision to accelerate the tax increase was made due to the state budget conditions and the need to increase state revenue for post-pandemic economic recovery
- Initially, the plan was to gradually increase the VAT rate to 11% in April, with a further 1% increase later in 2025
- VAT in Indonesia applies to services and transferring taxable goods, with businesses required to register once they reach a certain annual revenue limit
Source: balidiscovery.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.
