Indonesia: Book value for asset transfers - KPMG Global
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Indonesia: Book value for asset transfers, acquisitions in corporate reorganizations

Indonesia: Book value for asset transfers

The Ministry of Finance released a regulation—No. 52/PMK.10/2017—regarding the use of book value for the transfer and acquisition of assets in the context of mergers, consolidations, expansions or acquisitions involving corporate taxpayers.


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The new regulation replaces prior regulation from 2008, and has an effective date of 17 April 2017. 

The new regulation allows business acquisitions to use book value in the transfer and acquisition of asset. Mergers and consolidations involving a permanent establishment (PE) in the banking sector and a domestic corporate taxpayer whose capital is divided in the form of shares, will require the transfer of all assets and liabilities owned by PE to the domestic corporate taxpayer and dissolvement of the PE. Similarly, mergers and consolidations of domestic corporate taxpayers with an offshore corporate taxpayer will result in the transfer of the entire assets and liabilities to the domestic corporate taxpayer while dissolving the offshore taxpayer.

Under the new regulation, asset transfers using the tax book value are not allowed to be transferred to another party for at least two years after the effective date of the merger, consolidation, expansion, or acquisition transaction, unless the transfer of the assets is related to the improvement of a company’s efficiency.


Read a 2017 report [PDF 268 KB] prepared by the KPMG member firm in Indonesia

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