New Implementing Regulation for 2008 Income Tax Law and New VAT Rules for Banking Industry

The Indonesian government recently issued a regulation following the amendment of Income Tax Law and Value Added Tax Law. The new regulation relating to the Income Tax Law on the determination of taxable income and the settlement of income tax, replaces the existing regulation and serves as the main implementing regulation of the 2008 Income Tax Law. The Director General of Taxation has also issued a ruling that clarifies which banking services are subject to VAT.