Improvement in Taxation Incentive for Foreign Exchange from Export Proceeds Placed in the Domestic Financial System under Consideration

After the government issued Government Regulation Number 1 Year 2019 regarding Foreign Exchange from Export Proceeds from Natural Resources Business, Management, and/or Processing Activities, the Ministry of Finance will immediately issue the revision to regulation which provides for income tax on the interest on term deposits originating from foreign exchange from export proceeds placed in Indonesian financial system.

At the moment, income tax on the interest on term deposits is provided for by Regulation of the Minister of Finance Number 26/PMK.010/2016 regarding the Amendment to Decision of the Minister of Finance Number 51/KMK.04/2001 regarding Withholding of Income Tax on the Interest on Term Deposits and Savings as well as Discount on Bank Indonesia Certificates.

According to the Head of the Fiscal Policy Agency, Suahasil Nazara, the ministerial regulation will be revised to provide the same taxation incentive for exporters who extend the term deposits or transfer the placement of such term deposits to another domestic bank. Nevertheless, the government will not change the amount of income tax discount provided for in the regulation.

 

 

 

Source https://legalcentric.com/content/view/137888

Government Regulation Number 34 Year 2017 Income Tax On Income From Land And/Or Building Lease
Government Regulation Number 34 Year 2017 Income Tax On Income From Land And/Or Building Lease

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