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Indonesia Extends Reduced Withholding on Bond Interest to Resident Taxpayers

08 September 2021

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Approved Changes

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Indonesia

Indonesia has published Government Regulation No. 91 of 2021, which extends the reduced withholding tax rate of 10% on bond interest to resident (domestic) taxpayers. The reduced withholding tax rate was introduced by the Law on Job Creation (Law No. 11 of 2020) and regulated by Government Regulation No. 9 of 2021 for bond interest/discount income obtained by a non-resident, other than a permanent establishment, and applies for: Interest on bonds with coupons at the gross amount of interest in accordance with the term of ownership of the bonds; Discount from bonds with coupons equal to the difference in selling...