Generally, in accordance with the Indonesian Tax Authorities’ guidelines (PER 43/PJ/2010) as amended by PER 32/PJ/2011, taxpayers in Indonesia are required to provide documentation for the determination of a fair price or fair profit to be made clear to the Indonesian Taks Authorities. Such documentation shall cover a detail description of the company, its policy on the price determination and/or cost allocation determination, the results of a comparative analysis and notes on the application of the selected transfer pricing metho
Generally, in accordance with the Indonesian Tax Authorities’s guidelines (PER 43/PJ/2010) as amended by PER 32/PJ/2011, taxpayers in Indonesia are required to provide documentation for the determination of a “fair price” or “fair profit” to be made clear to the Indonesian Taks Authorities. Such documentation shall cover a detail description of the company, its policy on the price determination and/or cost allocation determination, the results of a comparative analysis and notes on the application of the selected transfer pricing method.
It should be noted that the transfer pricing documentation should be prepared before the company’s annual taks return, including the submission of the related party transaction disclosure form (Form 3A, 3B and 3C).