Seminar Taxation on Intercompany Financing

When:
Wednesday, 12 December 2018

Activity Time:
09.00 am – 05.00 pm

Where:
DDTC Academy
Menara DDTC (1^st Floor)
Jl. Raya Boulevard Barat Blok XC 5-6 B
Kelapa Gading Barat, Kelapa Gading
Jakarta Utara, DKI Jakarta,14240 – Indonesia

Investment:
IDR 3.000.000 (include VAT)

Background:
Different tax treatment among debt and equity creates a distortionary effect on financing decision. Financing strategy through debt is more preferable regarding to tax base reduction, and as a consequence, lower cost of capital. This is also supported by the idea of the optimal value cost of capital which can be measured through a weighted average of the cost of debt and cost of equity (weighted cost of capital), where cost of debt is considered after tax cost of debt. As a result, taxable firms will react by preferring more debt in their capital structure, particularly in the context of cross-border financing.

The idea of cross border excessive debt will be much more important if they take place within multinational enterprises (intra-group). With their common strategy and ability to coordinate under the same effective control, multinational enterprises would have the flexibility to build any debt scheme and to place debt in a high tax country. For instance, the use of hybrid financial instrument has gained significance in international finance, while thin capitalization and back to back loan has received attention from G20 countries on their BEPS project. Further, intercompany financing also received some attention from transfer pricing issues. Apart from the theory and intentional best practices, the seminar concludes with recent domestic law and how companies should comply with the rules.

Topics Covered:

1. Tax debt bias and business behavior,
2. Hybrid financial instrument,
3. OECD/G20 BEPS Action 4,
4. OECD Discussion draft on the Transfer Pricing aspects of financial transaction 2018,
5. Thin capitalization and interest limitation rule,
6. Debt to equity ratio vs. arm’s length capital structure,
7. Arm’s length financing behavior and interest rate,
8. Managing tax compliance toward DER rule in Indonesia.

Who should attend?
The course is suitable for company staff, student, CFOs, tax directors, tax managers, accountants working in companies performing financing activities across all industries, treasury managers, chartered accountants, financial controllers and analysts, internal and external auditors, tax experts and lawyers.

Our Excellence:

• DDTC is a research and knowledge based institution.
• DDTC was given an award by International Tax Review’s World Tax and World Transfer Pricing 2018 acknowledging our Managing Partner, Darussalam as a leading adviser and DDTC as a recommended firm in Transfer Pricing.
• Senior Partner DDTC, Mr Danny Septriadi, was selected as one of the World’s Leading Transfer Pricing Advisers 2017 by Expert Guides (one of the most trusted resources for international buyers of legal services).
• DDTC has published a number of bestselling transfer pricing books.
• Managing Partner and Senior Partner DDTC have been acknowledged as expert contributors for reputable national and international academic journals.
• Highly rated instructors. Our instructors are experienced trainers who consistently receive the highest rating for their presentations, have multidisciplinary educational background and hold world-class international certification, as follows:
  • 2 PhDs from Claremont Graduate University (USA) and the University of New South Wales (Australia);
  • 9 Master’s Degrees in International Taxation from leading universities abroad;
  • 1 Bachelor’s Degree (LL.B) in Taxation Law (Fiscal Recht from Leiden University, The Netherlands);
  • 4 Advanced Diplomas in International Taxation (ADIT) of the Chartered Institute of Taxation (UK);
  • 1 Diploma in International Taxation of International Tax Center, Leiden University, The Netherlands;
  • 11 Certificate Holders of International Tax Certificate from the Chartered Institute of Taxation (UK);
  • 15 Certificate Holders of Transfer Pricing from the Chartered Institute of Taxation (UK).

• Our topics always keep up with the latest taxation issues which are published via books, InsideTax (a semi-journal magazine), working papers, journals and DDTC News.
• Interactive training and case studies models.
• Up-to-date materials, relevant course contents and supported by a dedicated tax research team.
• To offer high quality training programs, DDTC equips its resources with a library that has more than 2,500 collections pertaining to transfer pricing, international & domestic taxation, and other subjects from reputable publishers and authors.

Our Facilities:

• Menara DDTC, new office building with new atmosphere, the best and most comprehensive professional training facilities (theater classes, cozy room, new concept and modern design, moot court simulation room, free Wi-Fi, modern facilities, etc.).
• Library access of more than 2,500 books and taxation journals.
• Exclusive training kits (goodie bag, notepad, pen).
• Getting “Kartu Peserta Training” that can be used as a discount card to re-attend our next training programs.
• Getting “Certificate of Training”.
• Lunch and coffee break are provided.