Countries: Indonesia

Indonesia vs P.T. Sanken Indonesia Ltd., December 2021, Supreme Court, Case No. 5291/B/PK/PJK/2020

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P.T. Sanken Indonesia Ltd. – an Indonesian subsidiary of Sanken Electric Co., Ltd. Japan – paid royalties to its Japanese parent for use of IP. The royalty payment was calculated based on external sales and therefore did not include sales of products to group companies. The royalty payments were deducted for tax purposes. Following an […]

Indonesia vs PT Tech Data Advanced Solutions Indonesia, November 2021, Supreme Court, Case No. 2747/B/PK/Pjk/2021

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PT Tech Data Advanced Solutions Indonesia (formerly PT AVnet Datamation Solutions) had paid service fees to a related party in FY 2013. Following an audit, the tax authorities issued an assessment where these service fees, among other issues, was found to be unsubstantiated by the evidence provided by the company. The Company disagreed and brought […]

Indonesia vs PT AVnet Datamation Solutions, November 2021, Supreme Court, Case No. 2748/B/PK/Pjk/2021

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PT Tech Data Advanced Solutions Indonesia (formerly PT AVnet Datamation Solutions) had paid service fees to a related party in FY 2014. Following an audit, the tax authorities issued an assessment where these service fees, among other issues, was found to be unsubstantiated by the evidence provided by the company. The Company disagreed and brought […]

Indonesia vs PT Mondelez Indonesia, July 2021, Supreme Court, Case No. 2031/B/PK/PJK/2021

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Following an audit of PT Mondelez Indonesia, the tax authorities issued an assessment where certain controlled transactions had been adjusted resulting in additional taxable income. A complaint was filed with the Tax Court where, in a decision issued 26 October 2021 the Court partially set aside the assessment. An appeal was then filed with the […]

Indonesia vs PT Hino Motors Manufacturing Indonesia, July 2021, Supreme Court, Case No. 1806 B/PK/PJK/2021

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PT Hino Motors Manufacturing Indonesia is a subsidiary of a Chinese Group in the automotive industry. Following an audit, the tax authorities issued an assessment for FY 2015 where the benchmark that had been used to determine the income of PT Hino Motors was dismissed and replaced with another. According to the tax authorities Hino […]

Indonesia vs PT PK Manufacturing Indonesia, March 2021, Supreme Court, Case No. 131/B/PK/Pjk/2021

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PT PK manufacturing Ltd was a contract manufacturer of cabins for excavators for the Japanese parent, Press Kogyo Co. Ltd. Japan, and paid royalties for “use of IP”. Following an audit, the tax authorities issued an assessment where deductions for royalty payments were disallowed due to lack of documentation for ownership to said IP. Furthermore, […]

Indonesia vs PT Nanindah Mutiara Shipyard Ltd, December 2020 Supreme Court, Case No. 4446/B/PK/Pjk/2020

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PT Nanindah Mutiara Shipyard Ltd reported losses for FY 2013. The tax authorities issued an assessment where the income of the company was increased by a substantial amount referring to applicable transfer pricing regulations. Nanindah Mutiara Shipyard Ltd filed a complaint with the Tax Court, but the Tax Court upheld the assessment. An application for […]

Indonesia vs PK manufacturing Ltd, March 2020 Supreme Court, Case No. 366/B/PK/Pjk/2020

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PK manufacturing Ltd was a contract manufacturer of cabins for excavators for the Japanese parent and paid royalties for use of IP owned by the parent. Following an audit, the tax authorities issued an assessment where deductions for royalty payments were disallowed due to lack of documentation for ownership to Intellectual Property by the Japanese […]

Indonesia vs PK manufacturing Ltd, January 2019 Court of Appeal, Case No. PUT-115599.15/2014/PP/M.XIIIB Tahun 2019

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PK manufacturing Ltd was a contract manufacturer of cabins for excavators for the Japanese parent and paid royalties for use of IP owned by the parent. Following an audit, the tax authorities issued an assessment where deductions for royalty payments were disallowed due to lack of documentation for ownership to Intellectual Property by the Japanese […]

Indonesia vs Cussons Indonesia, June 2017, Supreme Court, Nomor 907/B/PK/PJK/2017

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The tax authorities had disallowed royalty payments of 3% of net sales from Cussons Indonesia to its parent company in the UK, PZ Cussons International Ltd. According to the tax authorities Cussons had been unable to prove that the transaction was at arm’s-length, as well as unable to provide transfer pricing documentation. Cussons claimed that […]

Indonesia vs “Indonesia Ltd”, April 2016 Supreme Court, Case No. Put-70118/PP/M.IA/15/2016

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In this case “Indonesia Ltd” paid royalties for use of IP owned by the Japanese parent. Following an audit, the tax authorities issued an assessment where the royalty payments were disallowed. Judgement of the Court The Court ruled in favour of the taxpayer. According to the court “Indonesia Ltd” had been able to prove that […]

Indonesia vs P.T. Sanken Electric Indonesia Ltd, February 2016, Tax Court, Case No. Put.68357/PP/M.IA/15/2016

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P.T. Sanken Electric Indonesia Ltd. – an Indonesian subsidiary of Sanken Electric Co., Ltd. Japan – paid royalties to its Japanese parent for use of IP. The royalty payment was calculated based on external sales and therefore did not include sales of products to group companies. The royalty payments were deducted for tax purposes. The […]

Indonesia vs Sharp Semiconductor Indonesia, December 2013, Tax Court, Put.49339/2013

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In the case of Sharp Semiconductor Indonesia the tax authorities had disallowed deductions for royalties paid by the local company to the Japanese Sharp Corporation. Judgement of the Tax Court The court decided predominantly in favour of the tax authorities. According to the court Sharp Semiconductor Indonesia had not been able to prove the existence […]