Indonesia: Beyond Blood Ties: Calculating Family Degrees Under PMK-44/2026
Effective 20 October 2026, Minister of Finance Regulation PMK-44/2026 introduces revised methodologies for calculating family relationships (derajat keluarga) for tax purposes. This regulation impacts eligibility for dependent deductions (PTKP), inheritance tax exemptions, and gratuitous transfer reliefs. Moving beyond simple bloodlines, PMK-44/2026 incorporates adoption, step-relationships, and guardianship arrangements recognized under Indonesian civil law. The DGT article
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