The Implications of Intangible Assets Identification with DEMPE in the Indonesia’s Transfer Pricing Tax Regulations

Leonard Saputra () and Christine Tjen ()
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Christine Tjen: LPEM, Faculty of Economics and Business, University of Indonesia

No 201825, LPEM FEBUI Working Papers from LPEM, Faculty of Economics and Business, University of Indonesia

Abstract: This study is focusing to analyze the implications of implementing the concept of function identification in the intangible assets that is discussed in Action 8-10, known as DEMPE, in the Indonesia’s transfer pricing regulations. This research method is descriptive research with more priority to in-depth interview as primary data source. The result of this research is that there is relevance to apply BEPS Action Plan 8–10 in Indonesia, DEMPE concept can be applied effectively in Indonesia to overcome various problems, and its implementation only requires less significant adjustment because implicitly DEMPE concept has been applied mainly as basic inspection. Implementation in Indonesia’s pricing transfer rules can create new regulations that are generally described in PMK and the details will be explained in PER by adjusting to the relevance in Indonesia that allows added “marketing” function in the DEMPE concept. This implementation is expected to be able to get closer to each stakeholder’s perspective regarding to the procedure of identifying intangible assets that emphasizes the analysis of economic ownership

Keywords: Transfer; Pricing; —; OECD; —; BEPS; —; Action; Plan; 8-10; —; Intangible; Asset; —; DEMPE (search for similar items in EconPapers)
JEL-codes: H25 H26 (search for similar items in EconPapers)
Date: 2018-25, Revised 2018
New Economics Papers: this item is included in nep-acc and nep-sea
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