Dividend Stripping in Indonesia: Emerging Schemes after the Harmonization of Tax Regulations Law Implementation

This article examines the emergence of dividend stripping-schemes in Indonesia following the implementation of the Harmonization of Tax Regulations Law. Dividend stripping, a complex financial manoeuvre involving the strategic transfer of share ownership around dividend distribution dates, has become a growing concern for tax authorities worldwide. The article analyses how Indonesia’s new tax provisions regarding dividend exemptions may inadvertently create opportunities for tax avoidance or evasion through dividend-stripping practices. Through analysis of possible schemes, this article provides insights into the detection and prevention of dividend stripping in the Indonesian context. The findings suggest that while cum-ex schemes remain difficult to execute in Indonesia due to regulatory safeguards, cum-cum schemes present significant risks that warrant targeted policy responses and enforcement strategies.