The Indonesian government has reportedly reached agreement with the finance commission of the House of Representatives on tax reform measures first announced as part of the 2022 Budget in August 2021. Key measures agreed to include:
- An increase in the standard VAT rate from 10% to 11% from April 2022 with a further increase to 12% from 2025;
- Maintaining the standard corporate tax rate at 22% from 2022 (a reduction to 20% currently scheduled);
- A new top individual income tax rate to 35% on in…