Preparation of Local File
Your primary line of defense. We create a detailed, transaction-level Local File that justifies your Indonesian entity’s profitability through functional, risk, and economic analysis.
- Transaction-Level Detail: Deep dive into specific intercompany deals.
- FAR Analysis: Detailed breakdown of Functions, Assets, and Risks.
- Local Benchmarking: Indonesian-centric data for maximum credibility.
About
The Local File (Dokumen Lokal) is the most scrutinized document in an audit. It focuses on the specific related-party transactions of the Indonesian taxpayer. We provide a rigorous analysis of your business characteristics and use the most appropriate TP methods to prove your results fall within the “Arm’s Length Range.”
Why Choose Our Local File Preparation?
Under 2026 rules, the Local File must include a “Preliminary Analysis” for services and royalties. We are specialists in the “Benefit Test” and “Substance Test,” ensuring you have the evidence (emails, logs, reports) to prove intercompany services were actually rendered.
Benefits of Our Service
Audit Resistance: Built to withstand 2026 Coretax “anomaly” detection.
Economic Defense: Strategic selection of PLIs (Profit Level Indicators).
Legal Shield: Proper documentation prevents the “burden of proof” from shifting to the tax office.
FAQ for Local File
What is a "FAR" analysis?
How many comparables do we need?
What is a "Functional Analysis"?
Do we need to disclose unit prices?
Can we use regional comparables (Asia-Pacific)?
What is the "Benefit Test"?
Do you handle "Management Fees"?
How long is a Local File?
Can we change methods every year?
What is an "Internal Comparable"?
Country Lead / M&A Indonesia Operation
Other Services
Legal precision in two languages. We provide certified, technically accurate translations of your global Master Files and Local Files into Bahasa Indonesia, as required by the Ministry of Finance.
- Technical Accuracy: Translating "TP Jargon" correctly for Indonesian law.
- Certified Quality: Sworn translation services where required.
- Regulatory Compliance: Meeting the strict Bahasa Indonesia requirement of PMK-172.
Rapid, data-driven profit testing. We perform targeted benchmarking searches to find “market price” ranges for companies that don’t need full TP Docs but still need to prove their pricing is fair.
- Database Precision: Access to Orbis, Bloomberg, and local databases.
- Fast Turnaround: Quick range calculations for price-setting.
- Cost-Effective: Professional testing without the full three-tier report cost.
The global blueprint for your group. We draft a high-level Master File that describes your global business model, intangibles, and financing in a way that aligns with Indonesian disclosure standards.
- Group-Wide View: Comprehensive global organizational structure.
- Intangible Focus: Documentation of global IP and DEMPE functions.
- MoF Compliant: Formatted specifically to meet Indonesian PMK-172 rules.
WTC 5, 12th floor. Jl. Jenderal Sudirman No.Kav. 29-31, RT.8/RW.3, Kuningan, Karet, Kecamatan Setiabudi,
Kota Jakarta Selatan, Daerah Khusus Ibukota
Jakarta 12920
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Tell us about your company and we are ready to Transforming Your Vision Into Results
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