VATupdate

Indonesian Parliament approves Bill to gradually increase the VAT rate from 10% to 11% by 1 January 2025

In October, the Government of Indonesia published the Harmonization of Tax Regulations (HPP Law) detailing: the new tax measures in tax reform law, higher income tax rate for wealthy individuals, and plans for a new carbon tax mechanism. The legislation calls for a tax hike to the value-added tax rate from 10% to 11% effective 1 April 2022. The VAT rate will gradually increase by 1 January 2025 to 12%. This will apply to sales of nearly all goods and services. 

Source: GVC

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