Indonesia: Debt-to-equity ratio is 4:1 for 2016

Indonesia: Debt-to-equity ratio is 4:1 for 2016

Indonesia’s thin capitalization rules regulate the deductibility of finance expenses for purposes of calculating the corporate income tax payable. Pursuant to the Ministry of Finance regulation No. 169/PMK.010/2015, the debt-to-equity ratio under the “thin cap” rules is set at 4:1 maximum for fiscal year 2016.

Related content

Read an October 2015 report prepared by the KPMG member firm in Indonesia: Indonesian “Thin Capitalization” Rules

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG's new digital platform