According to the Ministry of Finance Regulation (MoF) No. 213/PMK.03/2016, if the Indonesian taxpayer has related party transactions, there is a possibility to prepare Master File and Local File to ensure the related party transactions are arm’s length.
The above obligation should be fulfilled if the taxpayer meet certain threshold to prepare the Master File and Local File.
For easy reference, we attach the simple guidance whether the taxpayer has obligation to prepare Master File and Local File.
