Indonesia

On 29 October 2021, the government issued the Harmonisation of Tax Regulations (Harmonisasi Peraturan Perpajakan or HPP) Law No. 7 Year 2021. The HPP Law brings several changes to existing sections of tax laws (General Tax Provisions and Procedures/Ketentuan Umum Perpajakan/KUP, Income Tax, VAT, and Excise) whilst also adding a new tax law section on the carbon tax.

In 2022, the government already issued several Government Regulations to implement the new rules under the HPP Law. These include the provision of the legal basis to implement the Two Pillar Solutions under the domestic regulations.