Article 23

Article 23 income tax (PPh 23)
Certain types of income paid or payable to resident taxpayers are subject to Article 23 income tax at a rate of either 15% or 2% of the gross amounts:
a.    Article 23 income tax is due at a rate of 15% of the gross amounts on the following:
1.    Dividends (but see page 5 – 6 concerning proft  distributions);

2.    Interest, including premiums, discounts, and  loan guarantee fees;
3.    Royalties;

4.    Prizes and awards.
b.    Article 23 income tax is due at a rate of 2% of the gross amounts on the fees for the following:
1.    Rentals of assets other than land and buildings

2.    Technical services
3.    Management services

4.    Consulting services

5.    Appraisal services
6.    Actuary services
7.    Accounting, bookkeeping and attestation   services
8.    Design services
9.    Drilling services for oil and gas mining except for  those performed by a PE
10.    Support services for oil and gas mining
11.    Mining services other than oil and gas  support

12.    Flight and airport support services
13.    Forest felling services

14.    Waste processing services

15.    Labour supply/outsourcing services
16.    Intermediary/agency services

17.    Custodianship and storage services except  for those performed by stock exchanges,
KSEI, and KPEI

18.    Sound dubbing services

19.    Film mixing services
20.    Computer and software-related services

21.    Installation services (for example,    of electricity, machinery, or telephone  equipment) except for those rendered by  licensed construction companies

22.    Maintenance and improvement services  (for example, for electricity, machinery,
or telephone equipment) except for    those rendered by licensed construction  companies

23.    Toll manufacturing services (maklon)
24.    Investigation and security services
25.    Event organisation services

26.    Packaging services
27.    Provision of space and/or time in mass  media, outdoor media and other media for  the dissemination of information
28.    Pest eradication services

29.    Cleaning services

30.    Catering services

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