Indonesia Double Tax Agreement Countries

Under Article 4 (tax residence), the term „resident of a country“ refers to any individual, legal or other legal person who, according to the law of that country, is taxable because of his residence, place of residence, place of administration or place of establishment in that country. If, according to the above definition, only one subject can be considered a subject of both countries, the resident status of the subject is set in accordance with the following rules in order to reduce priority: Singapore and Indonesia have deep, complex and long-standing economic relations. Singapore is the largest foreign investor in Indonesia since 2014. Countries maintain close cooperation in a wide range of sectors, including education, culture, defence and the environment. It should be noted that in the old version of the agreement, the withholding tax on all types of royalties was 15%. The purpose of the DBA is to reduce the double taxation of income collected in one jurisdiction by a resident of the other jurisdiction. Bilateral Investment Agreements (ILOs) encourage and protect investment between the two countries. Singapore and Indonesia signed a bilateral investment agreement (ILO) on 11 October 2018. The ILO will protect the interests of investors and strengthen strong economic relations between Singapore and Indonesia. The ILO also defines the rights, obligations and dispute settlement procedures for foreign investors in one country while they operate in the other. Singapore Companies operating in Indonesia enjoy protection and access to international arbitration in the event of an investment dispute.

Indonesian companies operating in Singapore will benefit from similar investment protection. Singapore and Indonesia have concluded several important agreements to remove barriers to economic cooperation and trade. These include the free trade agreement, the double taxation conventions and the bilateral investment agreement. These are briefly described below. We contain a collection of global double taxation conventions in English (and other languages, if available) to assist members in their applications. If you`re having trouble finding a contract, call the application team on (0)20 7920 8620 or email us at However, in some cases, these interests may be taxed in the country where they are generated (i.e. country A). For these situations, the DBA sets a ceiling as follows. If the actual beneficiary of interest income is established in country B, the tax collected by country A cannot exceed 10% of the gross amount.

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