The ITO interprets this to mean that the tax rate under Indonesian Tax Law (20%) should apply. The treaty is silent concerning BPT rate.

VAT is reciprocally exempted from the income earned on the operation of ships or aircraft in international lanes.Service fees, including for technical, management, and consulting services, rendered in Indonesia are subject to WHT at rates of 5% for Switzerland and United Arab Emirates 7.5% for Germany 10% for Cambodia, India, Luxembourg, Papua New Guinea, Venezuela, and Zimbabwe and 15% for Pakistan.Non-resident corporations and individuals Under the operation of a tax treaty, lower rates may be applicable at the following rates: Recipient premium and discount) enjoyed upon disposal, that is received or obtained by non-residents other than PEs can be given a lower WHT rate of 10%. The WHT rate for bond interest income, including the capital gain (i.e. Article 23/26 Income Tax (PPh 23/26)ĭomestic Article 23 WHT is payable at the rate of 2% for most types of services where the recipient of the payment is an Indonesian resident and 15% for a variety of payments to resident corporations and individuals.įor non-residents, Art. These WHTs are commonly referred to using the relevant article of the Income Tax ( Pajak Penghasilan or PPh) Law, as follows.

Where a particular income item is subject to WHT, the payer is generally held responsible for withholding or collecting the tax. Indonesian income tax is collected mainly through a system of WHTs.

Pph 23 berapa persen