The Minister of Finance, Sri Mulyani Indrawati, re-stated the plan for the elimination of dividend tax for domestic companies expanding overseas. This plan is included in the draft omnibus law on taxation. This elimination of dividend tax will be imposed on companies expanding overseas with the shareholding of less than 25% in a foreign company.
Sri Mulyani said that all this time, domestic companies with the shareholding below 25% in a foreign company are subject to dividend tax while domestic companies with the shareholding above 25% in a foreign company are not subject to dividend tax. Sri Mulyani wants the two conditions to be equated, namely domestic companies with the shareholding below and above 25% in a foreign company will not be subject to any dividend tax.
Nevertheless, Sri Mulyani is still reviewing the policy in more details. Discussion of this draft will begin in January 2020 with the House of Representatives. Sri Mulyani said there are still dynamic discussions in the cabinet internally regarding the plan, one of which is whether or not this relaxation will be given under a certain condition.
Source : LegalCentric