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

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.


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

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