Below is a list with tagged columns and company profiles.

Today's Headlines Income Tax

  • Government of Indonesia Offers 50% Discount on Income Tax

    Government of Indonesia Offers 50% Discount on Income Tax

    The government of Indonesia offers a new incentive to entrepreneurs in Indonesia's footwear and textile (and textile products) sectors who employ at least 2,000 workers and export 50 percent of their total sales. Authorities give a 50 percent discount on income tax to those workers that earn a maximum IDR 50 million (approx. USD $3,850) per year. Both Indonesia's footwear and textile sectors have been plagued in recent years by slowing economic growth, the weak rupiah and rising minimum wages.

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  • Tax Haven in Indonesia? Corporate Income Tax Indonesia Slashed?

    Tax Haven in Indonesia? Corporate Income Tax Indonesia Slashed?

    The government of Indonesia selected two islands - Resort islands Bintan and Rempang, situated near Singapore - as the possible location for its tax haven (a low-tax jurisdiction that should prevent Indonesian taxpayers from moving their assets to other countries in search of more attractive tax rates, while non-residents will also be able to establish so-called shell companies). Currently, a significant portion of Indonesian funds flow to offshore financial centers in Singapore, Mauritius, British Virgin Islands and Panama.

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  • E-Commerce Business Indonesia: New Tax Tariff for Online Retailers?

    E-Commerce Business Indonesia: New Tax Tariff for Online Retailers?

    Indonesia plans to introduce a special tax regulation for those small and medium-sized enterprises that generate revenue and profit through online retail sales (e-commerce business). Daniel Tumiwa, Chairman of the Indonesian E-commerce Association (idEA), informed reporters about the government's plan. He added that only a small tax tariff will be charged on small and medium-sized e-commerce companies. The new regulation is expected to be implemented later this year.

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  • Income Tax on Indonesia's Government Bonds to Be Removed?

    Income Tax on Indonesia's Government Bonds to Be Removed?

    The Indonesian government is studying whether to remove the income tax on sovereign bonds (surat berharga negara, or SBN) which is currently set at 15 percent for Indonesia-based investors and 20 percent for non-resident investors. The Indonesian Finance Ministry and Financial Services Authority (OJK) will include this topic in the revision of the Income Tax Law (that is to be proposed to the House of Representatives in early 2017). Other revisions include a lower corporate income tax and a higher non-taxable income rate for individuals.

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  • Indonesia to Raise Non-Taxable Income by 50% in 2016

    Indonesia to Raise Non-Taxable Income by 50% in 2016

    The government of Indonesia plans to raise non-taxable income by 50 percent from IDR 36 million (approx. USD $2,727) to IDR 54 million (approx. USD $4,090) in a bid to strengthen people's purchasing power and encourage household consumption. Although at first sight this move should lead to curtailed (income) tax collection, the Indonesian government expects that rising household consumption and investment will lead to higher value-added tax (VAT) and corporate income tax revenue. This should then add 0.16 percentage point to the nation's gross domestic product (GDP) growth.

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  • Indonesia's Tax Revenue Weak in Q1-2016, Plans Personal Income Tax Rate Cut

    Indonesia's Tax Revenue Weak in Q1-2016, Plans Personal Income Tax Rate Cut

    Indonesian Finance Minister Bambang Brodjonegoro announced on Tuesday (05/04) that Indonesia's tax revenue reached IDR 194 trillion (approx. USD $14.7 billion) in the first quarter of 2016, down 2.1 percent from tax revenue in the same period one year earlier. Brodjonegoro blamed this poor result on lower income from value-added taxes (VATs) due to tax restitution and people's low consumption amid sluggish economic growth. Meanwhile, he informed that Indonesia plans to cut the personal income tax, a move aimed at boosting tax compliance.

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  • Income Tax Cut & Street Vendors' Leasehold Certificates in Indonesia's 7th Package

    Income Tax Cut & Street Vendors' Leasehold Certificates in Indonesia's 7th Package

    In the seventh economic stimulus package, the Indonesian government cuts income tax (up to 50 percent) for employees in labor-intensive industries who earn less than IDR 50 million (approx. USD $3,600) per year. This facility, unveiled on Friday (04/12), aims to combat financial pressures on companies caused by the economic slowdown and next year's higher minimum wages (in order to avert a rise in unemployment as companies may feel the need to sack employees). This tax incentive will be offered for a period of two years and - if successful - will be extended.

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  • Indonesia Unveils Seventh Economic Stimulus Package

    After having been delayed for several weeks, the Indonesian government today unveiled the seventh stimulus package. The series of stimulus packages are aimed at boosting economic growth in Southeast Asia's largest nation amid slowing growth in China (the primary trading partner of Indonesia), low commodity prices (Indonesia's primary export products), and a looming US interest rate hike later this month (possibly triggering heavy capital outflows from Indonesia).

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  • Indonesia Investments' Newsletter of 15 November 2015 Released

    Indonesia Investments' Newsletter of 15 November 2015 Released

    On 15 November 2015, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Most of the topics involve economic subjects such as an analysis of Indonesia's Q3-2015 current account balance, a stock market & rupiah update, Indonesia's credit rating, income tax, the bond market, biofuel, property, forest fires, and more.

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Latest Columns Income Tax

  • Income Tax Treatment under Tax Treaties Reregulated

    Income Tax Treatment under Tax Treaties Reregulated

    Recently, the Ministry of Finance has issued Regulation Number 202/PMK.010/2017 of 2017 on Implementation of Income Tax Treatment Based on International Tax Treaties (Regulation 202/2017). Regulation 202/2017 supersedes the Ministry of Finance Regulation Number 157/PMK.010/2015 and its amendment number 5/PMK.010/2017. In this column we discuss the income tax treatment for foreigners and Indonesians under the new Regulation 202/2017.

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  • Income Tax on Dividends from Foreign Controlled Companies Revised

    Income Tax on Dividends from Foreign Controlled Companies Revised

    Recently the Ministry of Finance issued Regulation number 107/PMK.03/2017 on the Determination of the Moment of Acquisition of Dividends and the Basis for Their Calculation by Domestic Taxpayers for Capital Participation in Overseas Non-Listed Companies (New Regulation). Previously these matter were regulated under the Ministry of Finance Regulation number No. 256/PMK.03/2008 and the Minister of Finance Decision number 164/KMK.03/2002 (Old Regulations). The New Regulation focuses on income tax which is levied on dividends from controlled, non-listed foreign companies.

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  • Income Tax over Transfer of Land and Buildings Reregulated

    Income Tax over Transfer of Land and Buildings Reregulated

    On September 6, 2016, the Indonesian Government issued Government Regulation number 40 of year 2016 regarding Income Tax for Income Generated from the Transfer of and Conditional Sales and Purchase Agreements for Land and/or Buildings and its Amendments (GR 40/2016). The GR 40/2016 revokes and replaces Government Regulation No. 48 of 1994 and Government Regulation No. 71 of 2008. In this column we will discuss the new method of calculation, imposition and settlement of income tax, based on GR 40/2016.

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  • Tax System Indonesia: Plans to Cut Corporate Income Tax to 20%

    Tax System Indonesia: Plans to Cut Corporate Income Tax to 20%

    More changes to Indonesia's tax system are in the pipeline. Today (11/04), Indonesia's Finance Minister Bambang Brodjonegoro said Southeast Asia's largest economy plans to cut the corporate income tax rate to 20 percent this year (from 25 percent currently). According to Brodjonegoro a 20 percent corporate tax rate is more competitive and will attract investment. Indonesia's finance minister expressed this plan in a meeting with the nation's parliamentary commission overseeing taxes (an income tax rate cut requires parliamentary approval).

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  • Government of Indonesia to Cut Personal & Corporate Income Tax

    Government of Indonesia Plans to Cut Personal & Corporate Income Tax

    Good news for taxpayers in Indonesia. The Indonesian government plans to lower personal income tax, which currently ranges between 5 and 30 percent, in early 2016. Indonesian Finance Minister Bambang Brodjonegoro said lower personal income tax will make it easier for taxpayers to comply with the tax law, while giving a boost to Indonesians' purchasing power. However, he declined to inform to what extent personal income tax will be cut as this is still being studied.

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  • Indonesia's Current Account Deficit Expected to Ease Further in Q1-2014

    The current account deficit of Indonesia is expected to ease further in the first quarter of 2014 due to a possible slowdown of imports according to Deputy Finance Minister Bambang Brodjonegoro. This slowdown is estimated to be caused by the implementation of Indonesia's higher income tax on the import of durable consumer goods, effective from January 2014. However, the deficit will not ease markedly from the USD $4 billion deficit (equivalent to 1.98 percent of the country's gross domestic product) recorded in the fourth quarter of 2013.

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