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Indonesia Tax Rates
Corporate Tax
Statutory Surtax Local Effective Branch
28% - - 28% 28%/20%

The progressive corporate income tax rates imposed at a maximum of 30% are reduced to a flat rate of 28% as from FY 2009. The rate will be further reduced to 25% in FY 2010.

In addition to the 28% corporate income tax, nonresident companies are subject to a 20% branch profits tax on after-tax profits (the rate may be reduced under an applicable tax treaty).

Withholding Tax
Dividends Interest Royalties
20% 20% 20%

Dividends paid to a nonresident are subject to a 20% withholding tax unless the rate is reduced under an applicable tax treaty. To take advantage of a reduced treaty rate, the payee must obtain a certificate of tax domicile from the tax authorities in its country of residence and must be the beneficial owner of the dividends.

Interest paid to a nonresident is subject to a 20% withholding tax unless the rate is reduced under an applicable tax treaty.

Royalties paid to a nonresident are subject to a 20% withholding tax unless the rate is reduced under an applicable tax treaty.