On 31 January 2020, the Directorate General of Taxation has submitted the tax reform bill to the House of Representatives. The bill proposed to cut the corporate tax rate to 22% in 2021 and 2022 and to 20% from 2023, and further reduce the corporate tax rate by 3% from 2021 for companies that list publicly. The bill also proposed to reduce the 20% withholding tax on interest paid by a taxpayer to a foreign tax resident, and a tax exemption (tax write-off) on dividend income as long as the income is invested in Indonesia.
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