Executive summaryIndonesia and Singapore signed a new tax treaty on 4 February 2020 (New Treaty). The New Treaty was ratified by Indonesia on 11 May 2021 and entered into force on 23 July 2021 after ratification by Singapore. The New Treaty will replace the existing tax treaty that has been in effect since 1992 (Current Treaty) and will take effect for most purposes on 1January 2022.1Highlights of the New Treaty include:Reduction of the withholding tax rates for royalties and branch profitsIntroduction of capital gains protectionImplementation of the principal purpose test to counter tax treaty abuse.This Alert summarizes the key changes in the New...