2016. Together we grow. Hadori Sugiarto Adi & Rekan Vol

inspired Together we grow

NEW TRANSFER PRICING DOCUMENTATION REGULATION IN INDONESIA PMK 213/PMK.03/2016

Hadori Sugiarto Adi & Rekan A member of HLB International

Vol. 19 February 2017

Table of contents 1. Foreword 2. New Transfer Pricing Documentation Regulation in Indonesia PMK 213/PMK.03/2016 3. Key Contacts

Foreword Welcome to the nineteenth issue of Inspired! For this edition, we would like to inform the new regulation concerning transfer pricing documentation requirements on PMK No. 213/PMK.03/2016 regarding the type of additional mandatory information to be managed and retained by the taxpayers who conduct transactions with affiliated parties and its procedure. The new rule became effective on December 30, 2016 and is applicable for from the fiscal year 2016 onwards. The regulation implements new transfer pricing documentation guidelines developed by The Organisation for Economic Co-operation and Development (OECD) in the course of the Base Erosion Profit Shifting 13 (BEPS 13) project. We have received various inputs/comments from our readers on the prior issues. This creates a room for discussion on practical and relevant issues to our clients. Since we want the journal to be as relevant as possible to your business needs, we look forward to hearing your inputs on each issue. If you wish us to write an article on topics relevant to your business needs, please e-mail us. Contact details are furnished at the last part of this journal.

Adi Wirawan Senior Partner February 2017

“Hadori Sugiarto Adi & Rekan (Hadori) is a registered public accounting and business advisers firm, established in 1973, with offices located in Jakarta, Surabaya, Yogyakarta and Semarang, and comprises of 14 partners and more than 225 professionals. Hadori is a member of HLB International.”

New Transfer Pricing Documentation Regulation in Indonesia PMK 213/PMK.03/2016 Pada HLB Inspired Vol 17, kami telah membahas mengenai Kesepakatan Harga Transfer (KHT). Selanjutnya pada edisi kali ini, kami akan membahas peraturan terbaru mengenai Dokumentasi Harga Transfer yang tertuang dalam PMK No. 213/PMK.03/2016.

At the HLB Inspired Vol. 17, we have discussed the Advance Pricing Agreement (APA). Furthermore, in this edition, we will discuss the new regulation regarding the Transfer Pricing Documentation contained in PMK No. 213/PMK.03/2016.

Menteri Keuangan Republik Indonesia telah mengeluarkan peraturan baru tentang persyaratan dokumentasi harga transfer pada PMK No. 213/PMK.03/2016 mengenai jenis dokumen dan informasi tambahan yang wajib disimpan oleh wajib pajak yang melakukan transaksi dengan pihak berelasi. Aturan baru mulai berlaku pada tanggal 30 Desember 2016 dan berlaku untuk tahun fiskal 2016 dan seterusnya. Peraturan tersebut mengimplementasikan pedoman dokumentasi harga transfer baru yang dikembangkan oleh Organisation for Economic Co-operation and Development (OECD) dalam proyek Base Erosion Profit Shifting 13 (BEPS 13).

The Minister of Finance of the Republic of Indonesia had issued the new regulation concerning transfer pricing documentation requirements on PMK No. 213/PMK.03/2016 regarding the type of additional mandatory information to be managed and retained by the taxpayers who conduct transactions with related parties. The new rule became effective on December 30, 2016 and is applicable for from the fiscal year 2016 onwards. The regulation implements new transfer pricing documentation guidelines developed by the Organisation for Economic Co-operation and Development (OECD) in the course of the Base Erosion Profit Shifting 13 (BEPS 13) project.

Menurut peraturan baru, wajib pajak sekarang membutuhkan 3 (tiga) tingkat dokumentasi harga transfer sebagai berikut: 1. Dokumen induk 2. Dokumen lokal 3. Laporan per Negara

According to the new regulation, the taxpayers are now required 3 (three) tier of transfer pricing documentation as follows: 1. Master file 2. Local file 3. Country-by-Country Report

Informasi apa saja yang setidaknya dimuat dalam dokumen atau laporan tersebut?

What’s the at least information contain of these file or report?

1. Dokumen Induk Dokumen induk setidaknya harus memuat informasi bisnis grup sebagai berikut:  Struktur dan bagan kepemilikan serta Negara atau yuridiksi masing-masing anggota dari grup usaha  Kegiatan usaha yang dilakukan oleh grup usaha  Rincian harta tidak berwujud yang dimiliki oleh grup usaha  Aktivitas keuangan dan pembiayaan di dalam grup usaha

1. Master File The Master file must contain at least the business group information as follows:  Ownership structure and charts as well as the state or jurisdiction of each member in the business group  Business activities performed by business group  Details of the intangible assets owned by the business group  Financial and financing activities in the business group

1



Laporan keuangan konsolidasi entitas Induk dan informasi perpajakan terkait transaksi berelasi



Consolidated financial statements of the parent entity and tax information regarding related party transactions

2. Dokumen lokal Dokumen lokal setidaknya harus memuat informasi bisnis grup sebagai berikut:  Identitas dan kegiatan usaha yang dilakukan  Informasi transaksi berelasi dan transaksi independen yang dilakukan  Penerapan prinsip kewajaran dan kelaziman usaha  Informasi keuangan dari wajib pajak  Peristiwa-peristiwa/ kejadian-kejadian/ fakta-fakta non-keuangan yang memengaruhi pembentukan harga atau tingkat laba.

2. Local file The local file must contain at least the business group information as follows:  Identification of the business activities performed  Information on related party transactions and independent transactions conducted  Application of the arm’s length principle

3. Laporan per Negara Laporan per Negara setidaknya harus memuat informasi bisnis grup sebagai berikut:

3. Country-by-Country Report The Country-by-Country Report must contain at least the business group information as follows:  Income allocation, taxes paid, and country by country or jurisdiction business activity from all the business group members both domestic and overseas that include the country’s name or jurisdiction, gross revenue, profit (loss) before tax, income tax that has been selfdeducted/collected/paid, income tax payable, capital, retained earnings, permanent employee headcount, and tangible assets other than cash and cash equivalent; and  List of the business group members and country-by-country or jurisdiction of main business activity.





alokasi penghasilan, pajak yang dibayar, dan aktivitas usaha per negara atau yurisdiksi dari seluruh anggota grup usaha baik di dalam negeri maupun luar negeri, yang meliputi nama negara atau yurisdiksi, peredaran bruto, laba (rugi) sebelum pajak, Pajak Penghasilan yang telah dipotong/dipungut/dibayar sendiri, Pajak Penghasilan terutang, modal, akumulasi laba ditahan, jumlah pegawai tetap, dan harta berwujud selain kas dan setara kas; dan daftar anggota grup usaha dan kegiatan usaha utama per negara atau yurisdiksi.

 

Financial information from the taxpayer Non-financial events/occurrences/facts influencing the formation of price or profit level.

Apa ketentuan bahasa dan mata uang asing dalam dokumentasi harga transfer?

What are provisions currency in the documentation?

Dokumen-dokumen tersebut menggunakan bahasa Indonesia dan dalam hal wajib pajak telah mendapat izin Menteri Keuangan Republik Indonesia untuk menyelenggarakan pembukuan dengan menggunakan bahasa asing dan mata uang selain Rupiah, batasan nilai uang dalam mata uang Rupiah setara dengan nilai mata uang selain Rupiah berdasarkan nilai kurs yang ditetapkan oleh Menteri Keuangan Republik Indonesia untuk penghitungan pajak pada akhir Tahun Pajak.

The aforementioned documents use the Indonesian language and with the situation that the taxpayer has received permission from the Minister of Finance of the Republic of Indonesia to maintain the books in foreign languages and currencies other than the Rupiah, limitation on the value of money in Rupiah currency equivalent to the value of currencies other than Rupiah based on the exchange rate set by Minister of Finance of the Republic of Indonesia for tax calculation at the end of the Taxable Year.

the language and transfer pricing

2

Dokumen Induk dan Dokumen Lokal/Master File and Local File A. Ambang Batas Documentation

Dokumentasi

Harga

Transfer/The

Dasar Ambang Batas/Basis of Threshold Nilai peredaran bruto pada tahun pajak sebelumnya/Gross revenue in the preceding taxable year Transaksi barang berwujud pada tahun pajak sebelumnya/Tangible goods transactions in the preceding taxable year Atau/Or Jasa, royalti, bunga atau transaksi lain pada tahun pajak sebelumnya/Services, royalties, interest or other transactions in the preceding taxable year Transaksi dengan pihak berelasi yang berbeda yurisdiksi dengan tarif pajak lebih rendah dari Indonesia (sekarang 25%)/Related party transactions in a different jurisdiction with tax rate lower than Indonesia (currently 25%)

Threshold

on

Transfer

Pricing

Ambang batas/Threshold Lebih dari Rp 50.000.000.000 (lima puluh miliar Rupiah)/Exceeding Rp 50,000,000,000 (fifty billion Rupiah) Lebih dari Rp 20.000.000.000 (dua puluh miliar Rupiah)/Exceeding Rp 20,000,000,000 (twenty billion Rupiah) Lebih dari Rp 5.000.000.000 (lima miliar Rupiah) untuk masing-masing transaksi tersebut/ Exceeding Rp 5,000,000,000 (five billion Rupiah) for each these transactions. Tidak ada ambang batas/No threshold

Sebagai tambahan permintaan dokumen, jika entitas induk merupakan wajib pajak Indonesia yang peredaran brutonya paling sedikit Rp 11.000.000.000.000 (sebelas triliun Rupiah) wajib menyelenggarakan dan menyimpan laporan per negara/ In addition to the document requests, if the parent entity represents an Indonesian taxpayer, the gross income of at least Rp 11,000,000,000,000 (eleven trillion Rupiah) shall be prepared and kept on country-by-country report. B. Konsistensi Prinsip Kewajaran dan Kelaziman Usaha/Consistency of Arm’s length Principle Jika wajib pajak mempunyai transaksi dengan pihak afiliasi namun tidak termasuk dalam ambang batas yang telah ditentukan di atas, wajib pajak tetap mempunyai kewajiban melakukan transaksi dengan menggunakan prinsip kewajaran dan kelaziman usaha/ If the taxpayer has transactions with affiliates, but not included in the threshold specified above, the taxpayer has still the obligation to conduct a transaction using the arm’s length principle. C. Ketersediaan Data/Availability of Data Dokumen induk dan dokumen lokal wajib diselenggarakan berdasarkan data dan informasi yang tersedia pada saat dilakukan transaksi berelasi. Jika tidak, maka Wajib Pajak dianggap tidak menerapkan Prinsip Kewajaran dan Kelaziman Usaha/ The master file and local file are to be based on the data and information available at the time the related party transactions are conducted. If not, the taxpayer shall be deemed not to apply the arm’s length principle. D. Batas Waktu Penyampaian Dokumen harga transfer harus tersedia dalam 4 (empat) bulan setelah akhir tahun dan harus disertai dengan surat pernyataan atas waktu ketersediaan dokumen tersebut. Surat tersebut harus ditandatangani oleh pihak yang menyediakan dokumen harga transfer/ The Transfer Pricing Document must be available within 4 (four) months after the end of the taxable year and must be accompanied by a statement letter concerning the timing of the availability of such documents. Such statement letter needs to be signed by the party providing the Transfer Pricing Document.

3

E. Lampiran dalam SPT PPh Badan Wajib pajak harus membuat Ikhtisar sebagai lampiran Surat Pemberitahuan Tahunan Pajak Penghasilan Badan Tahun Pajak yang bersangkutan yang menyatakan bahwa dokumen induk dan dokumen lokal telah tersedia pada tanggal yang telah ditetapkan serta ditandatangani oleh penyedia dokumen tersebut/ The taxpayer must prepare an overview as an attachment to the Annual Corporate Income Tax Return for the related taxable year stating that the master file and local file have been available on the date that has been set and signed by the document provider. Laporan Per Negara/Country-by-Country Report A. Ambang Batas Dokumentasi Harga Transfer/The Threshold Transfer Pricing Documentation Laporan per negara wajib disiapkan dan disampaikan oleh wajib pajak yang memenuhi ketentuan sebagai Entitas Induk dari grup usaha dan memiliki penghasilan bruto konsolidasi sebesar Rp 11.000.000.000.000 (sebelas triliun Rupiah)./ The Country-by-Country Report shall be prepared and submitted by a Taxpayer that qualifies as Parent Entity of a business group with consolidated gross revenue of Rp 11,000,000,000,000 (eleven trillion Rupiah). Dalam hal Entitas Induk berdomisili di luar negeri, wajib pajak dalam negeri wajib menyampaikan Laporan per Negara jika Negara atau yuridiksi tempat Entitas Induk berdomisili:/ Where the Parent Entity is domiciled abroad, the resident taxpayer is required to submit the Countryby-Country Report or the Parent Entity:  



tidak mewajibkan penyampaian laporan per Negara/does not require the submission of Country-by-country report; tidak memiliki perjanjian dengan pemerintah Indonesia mengenai pertukaran informasi perpajakan; atau/does not have an agreement with the government of Indonesia on the exchange of information; or memiliki perjanjian dengan pemerintah Indonesia mengenai pertukaran informasi perpajakan, namun laporan per negara tidak dapat diperoleh pemerintah Indonesia dari negara atau yurisdiksi tersebut/has an agreement with the government of Indonesia related to the exchange of tax information but the Country-by-Country report cannot be obtained by the government of Indonesia.

B. Ketersediaan Data/Availability of Data Laporan per negara wajib disiapkan berdasarkan data dan informasi yang tersedia sampai dengan akhir Tahun Pajak/ The Country-by-Country report shall be prepared based on the data and information available

up to the end of the Taxable Year. C. Batas Waktu Penyampaian Laporan per Negara harus tersedia paling lama 12 (dua belas) bulan setelah akhir Tahun Pajak/ The Country-by-Country report must be available within 12 (twelve) months after the end of the taxable year. D. Lampiran dalam SPT PPh Badan Laporan per negara Tahun Pajak 2016 dan seterusnya wajib disampaikan sebagai lampiran Surat Pemberitahuan Tahunan Pajak Penghasilan Badan tahun pajak berikutnya/ The Country-by-Country Report for the Taxable Year 2016 and onwards must be submitted as an attachment to the Annual Corporate IncomeTax Return for the subsequent taxable year.

4

Kesimpulan

Conclusion

PMK 213/PMK.03/2016 menuntut Wajib Pajak untuk lebih transparan dalam mengungkapkan transaksi berelasi dengan mewajibkan membuat dokumen induk, dokumen lokal dan laporan per Negara sesuai regulasi. Hal tersebut memberikan kesempatan kepada Wajib Pajak untuk membuktikan bahwa transaksi dengan pihak berelasi sudah sesuai dengan aturan-aturan yang berlaku sehingga tidak ada isu pengalihan laba ke luar negeri yang dapat merugikan pemerintah Indonesia.

PMK 213/PMK.03/2016 requires taxpayers to be more transparent in disclosing related party transactions by requiring the preparation of the master file, local file and Country-by-Country report in accordance with the regulations. Such matter provides the opportunity for the taxpayer to prove that the related party transactions are in accordance with the applicable rules, as such, there is no issue of transfer of profits abroad that can be detrimental to the Indonesian government.

Di dalam PMK 213/PMK.03/2016 ini memang lebih luas mengatur permasalahan Dokumen Harga Transfer, aturan ini mencakup kewajiban Wajib Pajak dalam menyediakan dokumen atas transaksi dengan pihak berelasi. Berbeda dengan PER 32/PJ/2011 yang mengatur Penentuan Harga Transfer atas transaksi yang dilakukan Wajib Pajak Dalam Negeri atau Bentuk Usaha Tetap di Indonesia dengan wajib pajak luar negeri di luar Indonesia.

In PMK 213/PMK.03/2016, provides a wider oversigh on the issue of Transfer Pricing Document. This rule include the obligation of the taxpayers to provide documents on transactions with related parties. Different with PER 32/PJ/2011 which regulates the Transfer Pricing for transactions conducted by the taxpayers or permanent establishment in Indonesia with foreign taxpayer outside Indonesia.

PMK 213/PMK.03/2016 tidak membedakan antara Wajib Pajak dalam negeri dan Wajib Pajak luar negeri, selama mencakup persyaratan yang tercantum dalam peraturan tersebut maka Wajib Pajak berkewajiban menyelenggarakan Dokumen Harga Transfer. Seperti diketahui bahwa kedudukan PMK yang diterbitkan oleh Menteri Keuangan Republik Indonesia derajatnya lebih tinggi dari Peraturan DJP. Oleh sebab itu, PMK 213/PMK.03/2016 lebih luas dalam mengatur permasalahan Dokumentasi Harga Transfer dibandingkan dengan PER 32/PJ/2011.

PMK 213/PMK.03/2016 does not distinguish between domestic taxpayers and taxpayer abroad, for covering the requirements specified in these regulations, the taxpayer is obliged to organize Transfer Pricing Document. As it is known that the position of PMK issued by the Minister of Finance of the Republic of Indonesia higher than DGT Regulation. Therefore, PMK 213/PMK.03/2016 has a broader oversight on the issues of Transfer Pricing Documentation as compared with PER 32/PJ/2011.

Untuk tahun pajak 2016, wajib pajak setidaknya harus lebih fokus dan konsentrasi dengan Dokumentasi Harga Transfer tersebut, karena bulan April 2017 adalah batas terakhir penyampaian bagi perusahaan dengan periode pembukuan Januari sampai Desember. Jika Anda membutuhkan lebih banyak informasi mengenai Dokumentasi Harga Transfer, kami dapat memberikan pendampingan untuk Anda dalam menyiapkan Dokumentasi Harga Transfer sesuai peraturan yang berlaku.

For the 2016 taxable year, the taxpayer should at least be more focused and concentrated with the Transfer Pricing Documentation since in April 2017 is the last period of submission for companies with accounting period January to December. If you need more information about Transfer Pricing Documentation, we can assist you in Preparing the Transfer Pricing Documentation in accordance with applicable regulations.

5

Key Contacts Should you need further clarification on the information included in this issue, or would require any assistance in the implementation of the new accounting standards, taxation, regulation, and any other inquiries on our advisory services, kindly send us an email at [email protected] or call us at +62-21-5761667. Adi Wirawan Senior Partner [email protected]

Wahyu Wibowo Partner [email protected]

Yulianti Sugiarta Partner [email protected]

Wijanarko Partner [email protected]

Riza Manalo Paguio Senior Technical Advisor [email protected]

Velix Sogen Partner [email protected]

Contributors: Achmad Jaelani [email protected] Haryoko Bambang [email protected] Sri Agustina [email protected] Cover Photo: Christy Widjaja

Cover Photo Location: Padar Island, Flores, East Nusa Tenggara

HLB International is a leading global network of independent professional accounting firms and business advisers. We are present in 130 countries worldwide, with our member firms providing a comprehensive array of audit & accounting, tax and advisory services to a broad range of clients of all industry sectors. A member of the International Federation of Accountants Forum of Firms, HLB International is committed to the highest quality standards in financial reporting and auditing practices with all our members meeting specific quality criteria both nationally and internationally. With member firms well established in their markets, HLB International offers an ideal combination of local expertise and international skills. Our member firms support you as you grow regionally by becoming and globally, ensuring the same partner-led high-quality and personalised service wherever you operate. About Hadori Sugiarto Adi & Rekan Hadori & Rekan is a registered public accounting and business advisers firm. We have been established since 1973, with offices located in Jakarta, Surabaya, Yogyakarta and Semarang. The firm represents a group of specialist providing business advices and services to a wide range of business organizations, including private, public, stateowned enterprises and not-for-profit organizations. Since 1988, Hadori & Rekan joined HLB International, a worldwide accounting firms and business advisers. Having this membership each member firm has the right to use HLB in their name to present a blend of international and local name. It emphasizes the strength of both the international organization and the local firm whilst, at the same time, demonstrating the close bond between the two. Accordingly, the brand name Hadori & Rekan change to Hadori & Rekan (currently Hadori Sugiarto Adi & Rekan). Such change has been approved by the Ministry of Finance. As a member of HLB International, Hadori Sugiarto Adi & Rekan is part of a worldwide network of respected public accounting and business advisory firms in 130 countries, with 1,900 partners and 17,000 staffs in 600 offices worldwide. This publication contains general information only and is not intended to be comprehensive or to provide specific accounting, business, financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any Verdict or action that may affect you or your business. Before making any Verdict or taking any action that may affect you or your business, you should consult a qualified professional advisor. Whilst every effort has been made to ensure the accuracy of the information contained in this publication, this cannot be guaranteed, and neither HLB International nor any related entity shall have any liability to any person or entity that relies on the information contained in this publication. Any such reliance is solely at the user’s risk. © 2017 Hadori Sugiarto Adi & Rekan