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:

1. For the purpose of income tax, the Taxpayer is allowed to use book value after DGT approval.
2. Update on the criteria of Taxpayers that are allowed to use book value for business expansion and acquisition.
3. 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.
4. 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.