When Indonesia’s Minister of Finance (MoF) issued Regulation Number 131 of 2024 (PMK-131) on 31 December 2024 confirming the increase in the VAT rate to 12% (from 11%) as from 1 January 2025, an adjustment to the VAT imposition base was also made that results in an effective VAT rate of 11%. This adjustment was made to ease the financial burden on end consumers.
Source: Deloitte Tax@hand
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