On 2 November 2020, the Indonesian President Joko Jokowi Widodo has signed the Law on Job Creation (Law No. 11 of 2020). The law provides the following tax exemptions.
If dividends received from domestic companies that are to be re-invested in Indonesia the tax provisions on dividends will be amended as follows: (i) for Individual Taxpayers the final income tax of 10% becomes 0%; (ii) for Domestic Corporate Taxpayers the final income tax of 15% becomes 0%; and (iii) for Foreign Taxpayers the final income tax remains 20%, subject to the prevailing Tax Treaty.
If dividends received from Overseas Companies that are to be re-invested in Indonesia and meet stipulated conditions and requirements, they will be subject to 0% tax or not subject to tax. If the dividend remains abroad it will be taxed according to the applicable regulations.
