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Businesses urge caution on integrating OECD's transfer pricing standard
The provisions focus on simplifying transfer pricing policies to avoid tax avoidance loopholes, especially those used by multinational corporations.
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Minister Airlangga Airlangga says OECD membership and standards are critical to ensuring an inclusive and sustainable global economy, representing 80 percent of global trade and investment.
B
usiness stakeholders have asked the government to exercise caution when considering the recommendations of the Organization for Economic Co-operation and Development (OECD) regarding the implementation of Pillar 1 Amount B on transfer pricing.
Suryadi Sasmita, deputy chair of fiscal and taxation policy at the Indonesian Chamber of Commerce and Industry (Kadin) said that tax authorities had been struggling with tax administration related to transfer pricing, while taxpayers saw it as adding more of a burden.
Because of this, Suryadi hoped the government would approach the recommendation carefully, including when it sought to integrate the standards in domestic regulations.
“Business stakeholders will always support effectiveness and efficiency in the future application, on the principles of fairness and business conduct,” Suryadi said on Friday as quoted from Bisnis.
Read also: Indonesia’s protectionist policies could contravene OECD membership
The OECD suggested on June 18 that Indonesia adopt the new provisions from Pillar 1 Amount B on base erosion and profit shifting (beps) in international tax.
The provisions focus on simplifying transfer pricing policies to avoid tax avoidance loopholes, especially those used by multinational corporations.
