en.vivanews.com, Friday July, 9 2010
The Directorate General of Taxes reveals that companies in Indonesia that administers export trade and controlled from overseas could potentially carry out transfer pricing. The businesses include automotive, mining and palm oil products.
“Basically everything exported and controlled overseas may conduct transfer pricing,” the directorate’s tax investigation and billing director Otto Endi Panjaitan said on July 9.
Meanwhile, Indonesia-based companies, which are also managed domestically, carry a small possibility to do transfer pricing.
Panjaitan also said transfer pricing issue was rather complicated. Some of the companies that pull off transfer pricing run business in tax haven countries.
“There, they establish companies and if they gain high profit, they don’t have to pay taxes,” he said. Thus, trans-national coordination is required to solve the problem.
The taxes directorate has kept written policies to overcome the internal issue. Gradually, there are always training sessions for tax officers through seminars, in-house training and international information exchange.
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