Ismail Ashmat, Ph.D’s Post

Policymakers should prioritize medium-term growth by improving resource allocation, education, innovation, and policy frameworks, while addressing #fiscal and #trade risks. Indonesia's President-elect Prabowo Subianto has confirmed that Sri Mulyani, the widely respected finance minister, will join his cabinet. Her leadership in fiscal management is expected to reinforce Indonesia's trade policy, support critical reforms, and enhance the country’s global trade standing. This is expected to further strengthen long-term growth prospects and boost investor confidence, positioning Indonesia as a more competitive player in international markets.

Financial System Stability in Q3 2024 Remains Secure Indonesia’s financial system stability remained intact during the third quarter of 2024, despite facing global geopolitical dynamics and a trend toward monetary policy easing. Effective coordination among financial authorities, including the Ministry of Finance, Bank Indonesia, the Financial Services Authority (OJK), and the Deposit Insurance Corporation (LPS), ensured a balance between stability and economic growth. These efforts focused on controlling inflation, maintaining exchange rate stability, and ensuring smooth credit flow to the real sector. Fiscal and monetary policies were directed toward supporting sustainable economic recovery while strengthening the resilience of the financial sector against global risks. Proactive measures were implemented, such as enhancing banking liquidity, maintaining credit quality, and expanding financing access for small and medium-sized enterprises (SMEs). Financial institutions played a crucial role in fostering public trust through good governance practices. As a result, the stability of the financial system remains robust, underpinning the nation’s economic growth amidst global uncertainties. RDJ ADVISORY Tax and Advocate Tax, Transfer Pricing and Legal Services www.rdj-advisory.com #RDJAdvisory #TaxandAdvocate #FinancialSystem

💡Transfer pricing💡 The concept of transfer pricing plays a crucial role in business transactions, particularly those involving related parties. It emphasizes adherence to the arm's length principle, ensuring that prices reflect what would have been agreed upon in transactions between independent entities facing similar circumstances. ⚠️Transfer pricing rules not only apply to transactions between related companies but also encompass dealings between a head office and its branch(es). This broader scope highlights the necessity of maintaining fairness and accuracy in pricing across different business structures. A significant event that underscored the importance of transfer pricing regulations took place on 15th Nov 2024. The Tax Appeals Tribunal issued a landmark ruling in the case of SMEC International Limited Vs Uganda Revenue Authority, Application no. 75 of 2019, establishing a precedent for future considerations in this domain. For further insights into this groundbreaking ruling, you can access the provided link: https://lnkd.in/du4qrjKr #Transferpricing #TAT Hilda Nagujja ,ACCA, CPA, AFM Wilson Francis Moiti Martin Junior Owako Edgar Ndolerire

The Singapore Ministry of Finance invited feedback on the draft Multinational Enterprise (Minimum Tax) Bill and the subsidiary legislation to implement Pillar 2. It has released responses to the key feedback. Few highlights: 1. The QDMTT computation will need to be done based on the local financial accounting standard and not the Ultimate Parent’s financial accounting standard. 2. A branch registered in Singapore can be appointed as the designated local GloBE Information Return filing entity and designated local QDMTT filing entity. https://lnkd.in/gKsr6fNG

This webinar promises to be impactful and highly beneficial

In anticipation of the reintroduction of #APA provisions in #Kenya, it is important for multinational companies to familiarize themselves with APAs to take advantage of the promising #tax certainty. Since 2018, several African countries, including Tanzania, Rwanda, Zambia, and Uganda, have introduced APA provisions. However, we have yet to see any successfully concluded APAs between taxpayers and the revenue authorities in these countries. Based on my experience in Tanzania, I wrote an article on the #benefitsofAPA and what should the #KenyaRevenueAuthority (#KRA) do differently to ensure the effective implementation of APAs in the country.

Financial News Today - 4/22/24 📈 Source: Wind Financial Terminal - News 📰 -----Malaysian Sovereign Wealth Fund to Invest RM1 Billion in High-Growth Local Companies The Malaysian national sovereign wealth fund, Khazanah Nasional, will invest an initial capital of 1 billion Malaysian Ringgit into high-growth Malaysian companies for innovation. Twelve global venture capital firms will establish offices in Malaysia. -----Fiscal Data Released for First Quarter Shows Continued Recovery Growth Trend The Ministry of Finance has released data indicating that in the first quarter, the national general public budget revenue reached 6.0877 trillion yuan. After deducting special factors, the comparable growth is around 2.2%, continuing the trend of recovery growth. Special factors include the adjustment of the base due to the deferred tax payment for small and micro enterprises in 2022 and the tail reduction of tax revenue due to the four tax reduction policies introduced in mid-2023. In the first quarter, national tax revenue was 4.9172 trillion yuan, a year-on-year decrease of 4.9%, but remained stable growth after deducting special factors. In the first quarter, national general public budget expenditure increased by 2.9% year-on-year. In major expenditure areas, social security and employment expenditure amounted to 1.2708 trillion yuan, an increase of 3.7%; education expenditure reached 1.0436 trillion yuan, an increase of 2.5%; urban and rural community expenditure was 561.4 billion yuan, an increase of 12.1%; agricultural, forestry, and water expenditure was 518.5 billion yuan, an increase of 13.1%; housing security expenditure was 204.9 billion yuan, an increase of 7.8%. In the first quarter, tax revenue in industries such as cultural tourism consumption and advanced manufacturing grew rapidly. In the service industry, tax revenue from accommodation and catering, which is closely related to household consumption, increased by 44.7%, while tax revenue from cultural, sports, and entertainment industries increased by 26.7%. Tax revenue from transportation, warehousing, and postal services increased by 6.8%, and tax revenue from the retail industry increased by 5.7%, reflecting the continuous release of household consumption vitality. #windinformation #financialnews #investment #Malaysia #China #economy #growth

Reminder to tune in tomorrow where we plan to take you through some of the contentious international tax and transfer pricing developments emanating from the recent regulatory and tax audit environment in Indonesia. One of the key topics in particular would be of particular interest to the wholesale distributors in Indonesia.

Malaysia’s better-than-expected economic growth and the strengthening of the ringgit may push back the implementation of RON 95 petrol subsidy rationalisation, so it goes. Full story here.

The Asian Development Bank (ADB) mission visited the Federal Board of Revenue (FBR) to discuss the implementation of the Domestic Resource Mobilization Program (DRM). Led by #TariqNiazi, the #ADB delegation discussed structural and #policy reforms under the DRM Program, expressing satisfaction with the progress made. Subprogram I saw significant achievements, resulting in a $300 million disbursement to #Pakistan in December 2023, focusing on policy improvements and institutional capacity building within the #FBR. Subprogram II aims to complete reforms by the end of 2024. FBR highlighted its #digitalization efforts aligned with the Prime Minister's vision, aiming to transform into a Digital #Tax Administration. These initiatives, aimed at #automation and digitalization, aim to reduce taxpayer compliance costs, document the economy, and expand the tax base, fostering sustainable revenue growth. Collaboration with Karandaaz Pakistan is underway to develop a comprehensive digital strategy for FBR's digital transformation, with discussions on a Digital Tax Administration Project supported by #ADB. Both parties expressed interest in strengthening collaboration to support Pakistan's Digital Tax Administration Project. #DigitalPakistan #TechUpdate