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Clarification – Application of tax treaties in calculating BPT for trading representative offices

|Treaty Development|Indonesia
Indonesia

The tax authorities issued Circular Letter SE-2/PJ.03/2008 on 31 July 2008 to clarify the application of tax treaties in calculating the branch profits tax rate applicable to representative offices engaged in trading activities.

Trading representative offices are currently taxed on 1% of their gross export proceeds, at a final tax rate of 0.44% comprising…

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