The Directorate General of Taxes (DGT) has issued several circulars related to the implementation of the multilateral convention to implement tax treaty related measures to prevent base erosion and profit shifting (multilateral instrument/MLI) on the tax treaties (Perjanjian Penghindaran Pajak Berganda/P3B) between Indonesia and several partner countries.

The circulars have been released in connection with the completion of the procedures of ratification and submission of the MLI ratification instrument by the Government of Indonesia and several partner countries. These circulars are aimed at informing all units within the DGT concerning when MLI comes into force, becomes effective, and the points of regulation in MLI that apply to the tax treaties between Indonesia and several partner countries. As such, the implementation of the provisions under the MLI that apply to the tax treaties between Indonesia and partner countries is expected to run accordingly.

The scope of each circular outlines four matters. First, the enactment of the tax treaties between Indonesia and partner countries. Second, the process of signing and enforcing MLI by the Government of Indonesia and the governments of partner countries. Third, when MLI comes into force and becomes effective for the tax treaties between Indonesia and partner countries. Fourth, the points of regulation under MLI that apply to the tax treaties between Indonesia and partner countries.

Moreover, each circular is attached by a synthesis text of the MLI and the tax treaties between Indonesia and partner countries. The synthesis text is a modified draft of the tax treaties between Indonesia and partner countries resulting from the enactment of MLI.

The synthesis text is only intended to assist in understanding the application of MLI to the tax treaties between Indonesia and partner countries. The synthesis text cannot be used as a source of law. Each circular also emphasizes that the original text of MLI and the tax treaties between Indonesia and partner countries remain the applicable legal basis.

Each circular also outlines that the provisions under the MLI adopted by the Government of Indonesia and the governments of partner countries are implemented simultaneously with the application of the provisions under the tax treaties between Indonesia and partner countries. The list of provisions in the MLI adopted by the Government of Indonesia and the governments of partner countries can be accessed online on the OECD MLI Matching Database webpage.

Director of Tax Dissemination, Service, and Public Relations, Neilmaldrin Noor, reveals that the DGT has issued 21 circulars containing the Announcement of the Enactment of the MLI on the Tax Treaties (Perjanjian Penghindaran Pajak Berganda/P3B) between Indonesia and several partner countries. Details of these circulars are indicated in Table 1.

Table 1 List of Circulars concerning the Announcement of the Enactment of MLI for Tax Treaties between Indonesia and Partner Countries

No	Regulation	Concerning
1	Circular No. SE-5/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty between the Government of the Republic of Indonesia and the Government of Australia
2	Circular No. SE-6/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty between the Government of the Republic of Indonesia and the Government of Japan
3	Circular No. SE-7/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty between the Government of the Republic of Indonesia and the Government of Canada and the Protocol
4	Circular No. SE-8/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty between the Government of the Republic of Indonesia and the Government of the Republic of Finland
5	Circular No. SE-9/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty between the Government of the Republic of Indonesia and the Government of the Kingdom of Belgium
6	Circular No. SE-10/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty between the Government of the Republic of Indonesia and the Government of the Kingdom of Denmark
7	Circular No. SE-11/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty Between the Government of the Republic of Indonesia and the Government of the Republic of France
8	Circular No. SE-12/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty Between the Government of the Republic of Indonesia and the Government of the United Kingdom of Great Britain and Northern Ireland
9	Circular No. SE-13/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty Between the Government of the Republic of Indonesia and the Government of the Russian Federation
10	Circular No. SE-14/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty Between the Government of the Republic of Indonesia and the Government of the Republic of Poland
11	Circular No. SE-15/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty Between the Government of the Republic of Indonesia and the Government of Portuguese Republic
12	Circular No. SE-16/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty between the Government of the Republic of Indonesia and the Government of the Kingdom of the Netherlands and the Protocol
13	Circular No. SE-17/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty between the Government of the Republic of Indonesia and the Government of the Republic of India
14	Circular No. SE-18/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty between the Government of the Republic of Indonesia and the Government of the United Arab Emirates
15	Circular No. SE-19/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty between the Government of the Republic of Indonesia and the Government of Qatar
16	Circular No. SE-20/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty between the Government of the Republic of Indonesia and the Government of New Zealand
17	Circular No. SE-21/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty between the Government of the Republic of Indonesia and the Government of the Republic of Singapore
18	Circular No. SE-22/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty between the Government of the Republic of Indonesia and the Government of the Grand Duchy of Luxembourg
19	Circular No. SE-23/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty between the Government of the Republic of Indonesia and the Government of Slovak Republic
20	Circular No. SE-24/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty between the Government of the Republic of Indonesia and the Government of the Republic of Korea
21	Circular No. SE-25/PJ/2021	Announcement of the Enactment of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting for the Tax Treaty between the Government of the Republic of Indonesia and the Government of the Republic of Serbia

Circulars Announcing the Enactment of Multilateral Instrument