MAP Discussion

Discussion Period

• Indonesia’s Competent Authority is authorised to conduct the discussion within twenty four months (can be extended 1 (one) time for a period not longer than 24 (twenty-four) months for each request), starting from:

1. The acceptance of MAP request from the Competent Authority of the Tax Treaty Partner, for MAP initiated by the Competent Authority of the Tax Treaty Partner; or
2. The request for MAP to the Competent Authority of the treaty partner for MAP, initiated either by the Applicant or by the Director General of Taxes.

MAP Outcome

• The outcome of MAP discussion may be in the form of agreement or disagreement over the material requested for MAP.
• In the event of the negotiations have not resulted in the Mutual Agreement until the appeal verdict or judicial review decision is pronounced, the Director-General of Taxes:

1. continue the negotiation if the dispute matter(s) decided in the appeal verdict or judicial review decision is not the same as the dispute matter(s) that requested for the implementation of Mutual Agreement Procedure;
2. applies the appeal verdict as the negotiation position or terminate the negotiations if:
   1. 1. a judicial review is not submitted; and
      2. the dispute matter(s) n the appeal verdict is the same as the dispute matter(s) to which the request for the implementation of Mutual Agreement Procedure.

applies judicial review decision as a negotiation position or terminate the negotiation, in the event of the dispute matter(s) in the judicial review decision is the same as the dispute matter(s) that requested for the implementation of Mutual Agreement Procedure.

The Applicant's Obligations during MAP Discussion

• The Applicant shall provide any information and/or evidence to Director General of Taxes through Director of International Taxation in hardcopy or softcopy no later than 2 (two) months after:

1. the issuance date of the written notification stating that the request for the application of the Mutual Agreement Procedure is to be processed as referred to in Article 43 paragraph (4) subparagraph a of PMK 172/2023; or
2. the elapsing of 1 (one) month time limit, that the request for the application of the Mutual Agreement Procedure submitted by the Applicant is deemed to be processed as referred to in Article 43 paragraph (7) of PMK 172/2023.