DPR Passes Bill on Harmonization of Taxation Regulations

Indonesia’s House of Representatives (Dewan Perwakilan Rakyat– “ DPR ”) has just passed the Bill on the Harmonization of Taxation Regulations (“ Bill ”), a legal instrument that has been dubbed a key component of the country’s ongoing efforts to reform its tax system. [1] Comprising nine chapters and 19 articles, the Bill sets out a new regulatory framework that supports the implementation of fiscal consolidation strategies which will be focused upon improving the budget deficit and increasing the tax ratio. Ultimately, the Bill is expected to increase sustainable economic growth and accelerate economic recovery across Indonesia. [2]