Withholding Tax Rates

The withholding tax rates applicable under tax treaties are summarised below:

  Notes        Portfolio        Substantial

holdings

Interest Royalties Tax    
1.  Algeria 15% 15%    15/0%      15%    10%    
2.  Australia 15% 15%    10/0% 15/10%    15%    
3.  Austria 15% 10%    10/0%      10%    12%    
4.  Bangladesh 15% 10%    10/0%      10%    10%    
5.  Belgium 15% 10%    10/0%      10%    10%    
6.  Brunei 15% 15%    15/0%      15%    10%    
7.  Bulgaria 15% 15%    10/0%      10%    15%    
8.  Canada 15% 10%    10/0%      10%    15%    
9.  China 10% 10%    10/0%      10%    10%    
10. Croatia                               5 10% 10%    10/0%      10%    10%    
11. Czech Republic 15% 10% 12.5/0% 12.5% 12.5%    
12. Denmark 20% 10%    10/0%      15%    15%    
13. Egypt 15% 15%    15/0%      15%    15%    
14. Finland 15% 10%    10/0% 15/10%    15%    
15. France 15% 10% 15/10/0%      10%    10%    
16. Germany                            1 15% 10%    10/0% 15/10%    10%    
17. Hong Kong                         5 10% 5%         10/0% 5% 5%    
18. Hungary                             3 15% 15%    15/0%      15%    20%    
  Notes        Portfolio        Substantial

holdings

Interest Royalties Tax  
19. India 15% 10%    10/0%      15%    10%    
20. Iran   7%   7%    10/0%      12%      7%    
21. Italy 15% 10%    10/0% 15/10%    12%    
22. Japan 15% 10%    10/0%      10%    10%    
23. Jordan                                3 10% 10%    10/0%      10%    20%    
24. Korea (North) 10% 10%    10/0%      10%    10%    
25. Korea (South)                    2 15% 10%    10/0%      15%    10%    
26. Kuwait 10% 10%            5/0%      20% 10/0%    
27. Luxembourg                       1 15% 10%         10/0% 12.5% 10%    
28. Malaysia                             4 10% 10%         10/0% 10% 12.5%    
29. Mexico 10% 10%         10/0% 10% 10%    
30. Mongolia 10% 10%         10/0% 10% 10%    
31. Morocco                             5 10% 10%         10/0% 10% 10%    
32. Netherlands 10% 10%         10/0% 10% 10%    
33. New Zealand                      3 15% 15%         10/0% 15% 20%    
34. Norway 15% 15%         10/0% 15/10% 15%    
35. Pakistan                             1 15% 10%         15/0% 15% 10%    
36. Papua New                      1,5 15% 15%          10/0% 10% 15%    
Guinea            
  Notes        Portfolio        Substantial

holdings

Interest Royalties Tax  

 

38. Poland 15% 10% 10/0% 15% 10%    
39. Portugal 10% 10% 10/0% 10% 10%    
40. Qatar 10% 10% 10/0% 5% 10%    
41. Romania                                              15%              12.5% 12.5/0% 15/12.5% 12.5%  
42. Russia 15% 15% 15/0% 15% 12.5%    
43. Seychelles                          3 10% 10% 10/0% 10% 20%    
44. Singapore 15% 10% 10/0% 15% 15%    
45. Slovakia 10% 10% 10/0% 15/10% 10%    
46. South Africa                       3 15% 10% 10/0% 10% 20%    
47. Spain 15% 10% 10/0% 10% 10%    
48. Sri Lanka 15% 15% 15/0% 15% 20%    
49. Sudan 10% 10% 15/0% 10% 10%    
50. Suriname                           5 15% 15% 15/0% 15% 15%    
51. Sweden 15% 10% 10/0% 15/10% 15%    
52. Switzerland                        1 15% 10% 10/0%    10% 10%    
53. Syria 10% 10% 10/0% 20/15% 10%    
54. Taiwan 10% 10% 10/0% 10%    5%    
55. Thailand 20% 15% 15/0% 15% 20%    
  Notes Portofolio        Substantial

holdings

Interest Royalties Tax    
56. Tunisia 12% 12% 12/0% 15% 12%    
57. Turkey 15% 10% 10/0% 10% 10%    
58. Ukraine 15% 10% 10/0% 10% 10%    
59. United Arab

Emirates

10% 10%   5/0%   5%   5%    
60. United Kingdom 15% 10% 10/0% 15/10% 10%    
61. United States of

63. Venezuela 1 15% 10% 10/0% 20% 10%  
64. Vietnam   15% 15% 15/0%      15% 10%  
65. Zimbabwe 1,5 20% 10% 10/0%      15% 10%  

Notes:

  1.   Service fees including for technical, management and consulting services rendered in Indonesia are subject to withholding tax at rates of 5% for Switzerland, 7.5% for Germany, 10% for Luxembourg, Papua New Guinea, Venezuela and Zimbabwe, and 15% for Pakistan.
  2.   VAT is reciprocally exempted from the income earned on the operation of ships or aircraft in international lanes.
  3.   The treaty is silent concerning the branch proft tax rate. The ITO interprets this to mean that the tax rate under Indonesian Tax Law (20%) should apply.
  4.   Labuan offshore companies (under the Labuan Offshore Business Activity Tax Act 1990) are not entitled to the tax treaty benefts.

Ratifed but not yet effective, pending the exchange of ratifcation documents. Expected effective date is 1 January 2013

15% 10% 10/0%   10% 10%    

 

 

 

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