The Indonesian president signed the Harmonisation of Tax Regulations Bill (HPP, Harmonisasi Peraturan Perpajakan) on 29 October, which was previously passed by the House of Representatives (DPR).
According to the HPP, the current 10% VAT will increase to 11% from 1 April 2022 and 12% after 1 January 2025.
The Tax reforms are aimed at optimising the state revenue to support national development and accelerate economic recovery from the pandemic.