Article 4 (2) – final income tax (PPh Final)
Resident companies, Permanent Establishments (PEs), representatives of foreign companies, organizations, and appointed individuals are required to withhold final tax from the following gross payments to resident taxpayers and PEs:
1. Rental of land and/or buildings 10%
2. Proceeds from transfers of land and building rights 5%
3. Fees for construction work performance 2/3/4%
4. Fees for construction work planning 4/6%
5. Fees for construction work supervision 4/6%
6. Interest on time or saving deposits and on Bank
Indonesia Certificates (SBIs) other than that payable
to banks operating in Indonesia and to government- approved pension fund 20%
7. Interest on bonds other than that payable to banks
operating in Indonesia and government-approved
pension funds 15%
8. Sale of shares on Indonesian stock exchanges
Founder shareholders may choose to pay tax at 0.5%
of the market price of their shares upon listing. If they
do not choose this, gains on subsequent sales are taxed
under normal rules (under certain tax treaties, this tax
may not be due) 0.1%
9. Income from lottery prizes 25%
10. Forward contract derivatives 2.5%
Notes:
- If the recipient is a mutual fund registered with the Capital Market Supervisory Board ( Badan Pengawas Pasar Modal/BAPEPAM), the tax rate is 5% for 2011-2013 and 15% thereafter. If the recipient is a non-resident taxpayer, the tax rate is 20% or a lower rate in accordance with the relevant tax treaty.
- Applicable to the “initial margin”.
INDONESIAN TAX 