Law Number 7 of 2021 (Law on Harmonization of Tax Regulations) (UU HPP) allows the Indonesian Minister of Finance (MoF) to appoint a resident or nonresident party that is directly involved in or facilitates a transaction to withhold tax from payments made in connection with that transaction. Therefore, on 30 March 2022, the MoF issued Regulation Number 69/PMK.03/2022 (PMK-69) to regulate the income tax withholding (WHT) treatment of peer-to-peer lending (P2P lending) activities and the VAT treatment of the financial technology industry. PMK-69 enters into effect as from 1 May 2022. Companies engaged in the financial technology industry should review the regulation to ensure that they have the necessary infrastructure in place to implement the procedures required.
Source Deloitte
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