Indonesia, Hong Kong sign double-taxation avoidance accord
From Tempo
Indonesia Signs Tax reduction Deal With Hong Kong
TEMPO Interactive, Jakarta: Indonesian government and China's Special Administrative Region Hong Kong have signed a tax agreement in Jakarta on Tuesday (23/3), which would cut taxes on revenue from investments by up to 15 percent.
The deal, dubbed the Double Taxation Preventatives Agreement, signed by Finance Minister Sri Mulyani and Hong Kong's Financial Secretary John Tsang, reduces taxes on dividend, interest and royakty income on different range.
Tax on dividend and interest income will be cut from 20 percent to 10 percent.
Profit tax charged on Hong Kong-based companies in Indonesia is cut by a larger 15 percent from the original 20 percent, Tax on investment royalty is reduced to 5 percent and tax on dividend from investments above 25 percent of total business value is reduced to 5 percent.
This also a form of incentive for investment climate in both countries, Tax Regulation Director of the Taxation Office Syarifuddin Alsyah.
AGOENG WIJAYA
Indonesia Signs Tax reduction Deal With Hong Kong
TEMPO Interactive, Jakarta: Indonesian government and China's Special Administrative Region Hong Kong have signed a tax agreement in Jakarta on Tuesday (23/3), which would cut taxes on revenue from investments by up to 15 percent.
The deal, dubbed the Double Taxation Preventatives Agreement, signed by Finance Minister Sri Mulyani and Hong Kong's Financial Secretary John Tsang, reduces taxes on dividend, interest and royakty income on different range.
Tax on dividend and interest income will be cut from 20 percent to 10 percent.
Profit tax charged on Hong Kong-based companies in Indonesia is cut by a larger 15 percent from the original 20 percent, Tax on investment royalty is reduced to 5 percent and tax on dividend from investments above 25 percent of total business value is reduced to 5 percent.
This also a form of incentive for investment climate in both countries, Tax Regulation Director of the Taxation Office Syarifuddin Alsyah.
AGOENG WIJAYA