The Use of Book Value for Transfers and Acquisition of Assets for Mergers, Consolidations, Expansions or Acquisitions
- July 9, 2021
- Posted by: Administrator
- Category: Tax News
The Minister of Finance (MoF) has issued regulation No. 56/PMK.010/2021 dated 3 June 2021 concerning the Use of Book Value for Transfers and Acquisition of Assets during Mergers, Consolidations, Expansions or Acquisitions (“PMK-56”). PMK-56 amends MoF regulation No. 52/PMK.010/2017. The highlights of this regulation amendment are as follows:
- For the purpose of income tax, the Taxpayer is allowed to use book value after DGT approval.
- Update on the criteria of Taxpayers that are allowed to use book value for business expansion and acquisition.
- Update on procedure for submitting a request to use book value. This update also covers the additional documents that should be provided to the Tax Office during the process of application.
- Publicly Listed Companies and companies that plan to go public should fulfill the requirement of registration statement to OJK within 2 (two) years since the DGT approval for Business Expansion Using Book Value. The deadline can be extended for additional 2 (two) years by submitting a request letter to the DGT, accompanied by an explanation letter and its supporting documents.