September 30, 2025

Corresponding Adjustment on Domestic Transfer Pricing Assessment in Indonesia

Key Points

Transfer pricing regulations in Indonesia mandate thorough documentation and the arm's length principle in transactions.
These regulations bridge cross-border and domestic transactions, ensuring compliance and appropriate adjustments are documented.
The assessment primarily affects affiliated transactions, streamlining the audit process for domestic related-party adjustments.
Understanding these regulations can guide businesses in adhering to Indonesian compliance and avoiding penalties during audits.

Abstract

This article delves into Indonesia's comprehensive transfer pricing regulations, which mandate the preparation of transfer pricing documentation and the application of the arm's length principle for both cross-border and domestic affiliated transactions. It explores the rationale behind these regulations, their implementation and the implications of domestic related-party adjustments in transfer pricing audits.

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Cite This Study

Tambunan et al. (Mon,) studied this question.

synapsesocial.com/papers/68dc1e3f8a7d58c25ebb1e3b https://doi.org/https://doi.org/10.59403/ydtv9n