APA Renewal

• In renegotiating agreements after a certain period ends as referred to in Article 3 section (2), the Taxpayer may submit an APA renewal request to the Director-General of Taxes through the Tax Office where Taxpayer is registered.
• The request must be made within a period of 12 (twelve) months up to 6 (six) months before the last fiscal year in the previous APA Period. The request is made by filling the APA renewal request form as referred to in Attachment letter W in the PMK172/2023 correctly, completely, and clearly.
• The Taxpayer may request renewal of an APA for 1 (one) APA period. The renewal may be granted insofar as:

1. Taxpayer implements all agreements as same as the previous APA;
2. there is no material change to the facts and/or conditions of the controlled transactions covered in the previous APA with critical assumptions agreed in the previous APA; and
3. entities and the related party transaction proposed to be included in the APA renewal are the same as the previous APA.

Renewal will be processed similarly to regular APA requests, but the process should be lighter since DGT has already obtained substantial information from the previous APA as long as there are no substantial changes in facts and circumstances. As such, DGT does not assess the formal requirement (completeness and eligibility) and proceeds directly to material assessment.