Orbitax Tax News & Alerts
Indonesia's Tax news & updates from Orbitax and partners
Indonesia Tax News
Two-year program to stimulate investment
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.
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.
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.
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