Indonesia Tax News

Treaty between Portugal and Indonesia enters into force

14 May 2008

Corporate tax rate may be reduced to 25%

16 March 2008

Treaty between Indonesia and Qatar ratified

8 February 2008

Ministry of Finance clarified which opinions issued by tax authorities are relevant for waiver of tax penalties

2 July 2007

New Taxation Arrangements and Procedures Bill passed

2 July 2007

Tax exemption for discount on government bonds

18 June 2007

New Investment Bill passed

28 May 2007

Treaty between Indonesia and Netherlands – Indonesian Supreme Court Decision on treaty shopping

28 April 2007

Tax incentives for investments in certain industries

24 February 2007

Withholding tax on short-term government bond discounts introduced

11 July 2006

Interpretation of "beneficial owner" under tax treaties

14 May 2006

Two-year program to stimulate investment

9 April 2006

The Indonesian Director General of Taxation on 1 June 2005 issued Circular Letter SE-17/PJ.2005 establishing under the 2002 Indonesia-Netherlands tax treaty on income a withholding tax of 10% on interest paid to Netherlands residents.

3 August 2005

The Director-General of Taxation has issued circular letter SE-04/PJ.34/2005 dated 7 July 2005 in which guidance is given on how the term "beneficial owner" should be interpreted under tax treaties entered into by Indonesia. According to the circular letter, the beneficial owner is the actual owner of the income in the form of dividend, interest and royalty.

3 August 2005

The first-time income tax treaty and protocol between Mexico and Indonesia, signed on 6 September 2002, entered into force on 28 October 2004. The treaty generally applies from 1 January 2005.

19 January 2005