a.DGT Regulation No. PER-22/PJ/2013 dated 30 May 2013 about tax audit procedures. The regulation provides procedures on how to prepare and conduct audit including these issues:
-application of arm's length principle (ALP)
-identification of taxpayer's business
-how to choose TP Method
b. DGT Circular No. SE-50/PJ/2013 dated 24 October 2013 as a technical audit guide for transfer pricing, which is related to DGT Regulation No. PER-23/PJ/2013 dated 11 June 2013 on the tax audit standard. The circular gives a specific standard on how tax auditor should run their audit :
-Differentiation between special and routine audit
-The things that the tax auditor has to do for transfer pricing audit, since it is issued in relation to DGT Regulation about standard of tax audit which includes working papers and samples of items which have to be checked during audit.
-This circular revokes the previous circular, SE-04/PJ.7/1993.
Looking at the circular and the regulation, there might be several things needed for further clarification:
-Royalty payment is one of hottest topic for transfer pricing audit for both direct and indirect taxes and it deserves further and more detailed clarification
-Specific TP guidance for different issues for developing countries as noted in UN Practical Manual for Transfer Pricing are not specifically addressed in both regulations. It is interesting to see BRICS countries have responded to the report.
-Comparability issues for developing countries should be taken into account in Indonesia as also noted in UN Practical Manual.
-Should Indonesia pay more attention to Base Erosion and Profit Shifting which has drawn lots of attention from many countries? Transfer Pricing is obviously one of the issues in the report.
We also need to look at previous regulation to understand the issues of Transfer Pricing in here and here
Peraturan Transfer Pricing terbaru di tahun 2013 merupakan satu kemajuan meski ada beberapa hal yang meski masalah topik panas yang khas Indonesia belum dijelaskan secara rinci