unedited version revokes per-61/pj/2009, per...

UNEDITED VERSION

Revokes PER-61/PJ/2009, PER-24/PJ/2010, PER-62/PJ/2009, PER-25/PJ/2010

Type: REGULATION (PER)

By: THE DIRECTOR GENERAL OF TAXATION (DIRGENTAX)

Number: PER-10/PJ/2017

Date: JUNE 19, 2017 (JAKARTA)

Title: PROCEDURES FOR THE APPLICATION OF DOUBLE TAXATION AVOIDANCE AGREEMENT

THE DIRECTOR GENERAL OF TAXATION,

Considering:

a. whereas the provisions on procedures for the application of double taxationavoidance agreement have been previously stipulated in Regulation of theDirector General of Taxation Number PER-61/PJ/2009 regarding Procedures forthe Application of Double Taxation Avoidance Agreement as amended byRegulation of the Director General of Taxation Number PER-24/PJ/2010;

b. whereas the provisions on the prevention from abuse of double taxationavoidance agreement have been previously stipulated in Regulation of theDirector General of Taxation Number PER-62/PJ/2009 regarding Preventionfrom Abuse of Double Taxation Avoidance Agreement as amended byRegulation of the Director General of Taxation Number PER-25/PJ/2010;

c. whereas based on the provisions of Article 32A of Law Number 7 Year 1983regarding Income Tax as several times amended most recently by Law Number36 Year 2008, that the Government shall be authorized to enter into agreementwith Government of other country in the context of double taxation avoidanceand tax evasion prevention;

d. whereas based on the provisions of Article 2,4 paragraph (2) of GovernmentRegulation Number 94 Year 2010 regarding Calculation of Taxable Incomes andPayment of Income Tax in Current Year, it is necessary to re-stipulate theprovisions on procedures for the application of Double Taxation AvoidanceAgreement;

e. whereas in the context of giving legal certainty and preventing any abuse ofdouble taxation avoidance agreement, it is necessary to replace Regulation ofthe Director General of Taxation Number PER-61/PJ/2009 regardingProcedures for the Application of Double Taxation Avoidance Agreement asamended by Regulation of the Director General of Taxation Number PER-24/PJ/2010 and Regulation of the Director General of Taxation Number PER-62/PJ/2009 regarding Prevention from Abuse of Double Taxation AvoidanceAgreement as amended by Regulation of the Director General of TaxationNumber PER-26/PJ/2010;

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f. whereas based on the considerations as intended in points a, b, c, d, and eabove, it is necessary to stipulate Regulation of the Director General of Taxationregarding Procedures for the Application of Double Taxation AvoidanceAgreement;

In View of:

1. Law Number 6 Year 1983 regarding General Taxation Provisions andProcedures (State Gazette of the Republic of Indonesia Year 1983 Number 49,Supplement to State Gazette of the Republic of Indonesia Number 3262) asseveral times amended most recently by Law Number 16 Year 2009 (StateGazette of the Republic of Indonesia Year 2009 Number 62, Supplement toState Gazette of the Republic of Indonesia Number 4999);

2. Law Number 7 Year 1983 regarding Income Tax (State Gazette of the Republicof Indonesia Year 1983 Number 50, Supplement to State Gazette of theRepublic of Indonesia Number 3263) as several times amended most recentlyby Law Number 36 Year 2008 (State Gazette of the Republic of Indonesia Year2008 Number 133, Supplement to State Gazette of the Republic of IndonesiaNumber 4893);

3. Government Regulation Number 94 Year 2010 regarding Calculation of TaxableIncomes and Payment of Income Tax in Current Year (Supplement to StateGazette of the Republic of Indonesia Number 5183);

4. The Minister of Finance Regulation of the Republic of Indonesia Number12/PMK.03/2017 regarding Slip of Withholding and/or Collection of Income Tax(Official Gazette of the Republic of Indonesia Year 2017 Number 248);

HAS DECIDED:

To Stipulate: REGULATION OF THE DIRECTOR GENERAL OF TAXATIONREGARDING PROCEDURES FOR THE APPLICATION OFDOUBLE TAXATION AVOIDANCE AGREEMENT.

CHAPTER IGENERAL PROVISIONS

Article 1

In this Director General Regulation, referred to as:

1. Income Tax Law, hereinafter referred to as PPh Law, shall be Law Number 7Year 1983 regarding Income Tax as several times amended most recently byLaw Number 36 Year 2008.

2. Double Taxation Avoidance Agreement, hereinafter referred to as P3B, shall beagreement between the Government of Indonesia and the Government ofTreaty Partner Country or of Treaty Partner Jurrisdiction in the context of doubletaxation avoidance and tax evasion prevention.

3. Benefits of P3B shall be facilities in P3B which can be in the form of tax rateslower than those stipulated in PPh Law or exemption from tax imposition incountry of source.

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4. Non-Resident Taxpayer, hereinafter abbreviated as WPLN, shall be non-resident tax subject as intended in PPh Law who receives and/or earnsincomes originating from Indonesia whether through permanent establishmentor not in Indonesia.

5. Tax Withholder and/or Collector shall be corporate government, resident taxsubjects, activity organizers, permanent establishment, or representatives ofother foreign company which are obligated to perform tax withholding and/orcollection on incomes which are received or earned by WPLN.

6. Certificate of Domicile of WPLN, hereinafter abbreviated as SKD WPLN, shallbe certificate in the form of form consisting of Form DGT-1 or Form DGT-2which is filled out by WPLN and legalized by Authorized Official of treaty partnercountry or of treaty partner jurrisdiction of P3B in the context of the applicationof P3B.

7. Certificate of Residence shall be certificate in any name whatsoever whichexplains status of resident for the purposes of taxation for WPLN which isissued and legalized by Authorized Official of treaty partner country or of treatypartner jurrisdiction of P3B in the context of the application of P3B.

8. Official Authorized to Legalize SKD WPLN or Competent Authority, hereinafterreferred to as Authorized Official, shall be an official who has authorities tolegalize SKD WPLN and/or Certificate of Residence based on domesticregulations in treaty partner country or treaty partner jurrisdiction of P3B.

9. Custodian shall be institution already obtaining approval from competentauthorities in Indonesia to provide security custody services and other assetsrelating to securities as well as other services, including receiving dividends,interests, and other rights, settling securities transaction, and representingaccount holder of its customers.

10. Agent shall be natural person or entity which acts as broker and takes actionsfor and/or on behalf of other parties.

11. Nominee shall be a natural person or entity which legally has an asset and/orincome (legal owner) for the purposes or based on mandate of parties actuallybecoming owner of assets and/or parties actually enjoying benefits of incomes.

12. Conduit shall be a company which obtains Benefits of P3B in connection withincomes arising out in Indonesia, meanwhile economic benefits from theincomes are owned by natural person or entity in other country which will notobtain right of utilization of P3B if the incomes are received directly.

CHAPTER IIOBLIGATION OF TAX WITHHOLDING OR COLLECTION

Article 2

(1) Tax Withholder and/or Collector shall be obligated to perform tax withholdingand/or collection payable in accordance with the provisions stipulated in PPhLaw on incomes which are received or earned by WPLN.

(2) Exempted from the provisions as intended in paragraph (1), Tax Withholderand/or Collector shall perform tax withholding and/or collection in accordancewith the provisions which are stipulated in P3B in the event that:

a. there is difference between the provisions stipulated in PPh Law and theprovisions stipulated in P3B;

b. income recipient is not Indonesian resident tax subject;

c. income recipient is a natural person or entity constituting resident taxsubject of treaty partner country or of treaty partner jurrisdiction of P3B;

d. WPLN submits SKD WPLN already meeting the administrativerequirements and the other certain requirements;

e. there is no abuse of P3B; and

f. income recipient is beneficial owner, if required in P3B.

CHAPTER IIIPROCEDURES FOR TAX WITHHOLDING AND/OR COLLECTION AND

REPORTING Article 3

(1) Tax Withholder and/or Collector must prepare slip of tax withholding and/orcollection in accordance with the provisions which stipulate slip of income taxwithholding and/or collection.

(2) In the event that there is income which is received or earned by WPLN butthere is no tax which is withheld and/or collected in Indonesia based on theprovisions stipulated in P3B, Tax Withholder and/or Collector must remain toprepare slip of tax withholding and/or collection.

Article 4

(1) Tax Withholder and/or Collector must submit SKD WPLN already meeting theadministrative and other certain requirements as intended in Article 2 paragraph(2) sub-paragraph d as attachment to Periodic SPT for the period when incometax becomes payable.

(2) In the event that Tax Withholder and/or Collector do/does not submit any SKDWPLN as intended in paragraph (1), they/he shall be subject to the followingprovisions:

a. Benefits of P3B shall not be given to WPLN; and

b. Tax Withholder and/or Collector shall be obligated to perform taxwithholding and/or collection payable in accordance with the provisionsstipulated in PPh Law.

(3) The submission of SKD WPLN as intended in paragraph (1) can be performedelectronically in accordance with the provisions applicable.

CHAPTER IVREFUND OF EXCESSIVE TAX WITHHOLDING AND/OR

COLLECTION Article 5

(1) In the event that there is:

a. wrong application of P3B; or

b. SKD WPLN is submitted after Tax Withholder and/or Collector submit/sPeriodic SPT for the period when tax becomes payable,

WPLN can remain to be given Benefits of P3B by tax overpayment refund mechanism which should not be payable.

(2) Benefits of P3B as intended in paragraph (1) shall not be given in the event thatthere is abuse of P3B.

(3) SKD WPLN which is submitted as intended in paragraph (1) sub-paragraph b must meet the administrative requirements as intended in Article 6 paragraph (1) sub-paragraphs a, b, c, d, and e as well as the other certain requirements asintended in Article 8.

(4) In the event that WPLN which receives or earns incomes from Indonesia:

a. does not receive any Benefits of P3B; and

b. Tax Withholder and/or Collector do/does not submit Periodic SPT for taxperiod when tax becomes payable on the incomes,

WPLN can remain to be given Benefits of P3B by Mutual Agreement Procedure(MAP) mechanism.

CHAPTER VSKD WPLN WHICH MEETS THE ADMINISTRATIVE REQUIREMENTS

Article 6

(1) SKD WPLN shall meet the administrative requirements as intended in Article 2paragraph (2) sub-paragraph d in the event that:

a. uses Form DGT-1 or Form DGT-2;

b. filled out correctly, completely and clearly;

c. signed or given mark equal to signature by WPLN in accordance withcommon practices in treaty partner country or treaty partner jurrisdictionof P3B;

d. legalized by signing or giving mark equal to signature by AuthorizedOfficial in accordance with common practices in treaty partner country ortreaty partner jurrisdiction of P3B;

e. used for the period set out in SKD WPLN; and

f. submitted by Tax Withholder and/or Collector at the same time with thesubmission of Periodic SPT, by no later than the end of the time limit of

the submission of Periodic SPT for tax period when tax becomespayable.

(2) Validation by Authorized Official as intended in paragraph (1) sub-paragraph dshall be set forth in Part III Form DGT-1 or Part III Form DGT-2.

(3) Validation as intended in paragraph (2) can be replaced with Certificate ofResidence which must meet the following provisions:

a. uses Englih language;

b. in the form of original or copied document already legalized by TaxService Office where one of Tax Withholders and/or Collectors isregistered as Taxpayer;

c. at least contains information on WPLN’s name, the date of issue, andfiscal year of validity of Certificate of Residence; and

d. specifies name and signed or given mark equal to signature byAuthorized Official in accordance with common practices in treatypartner country or treaty partner jurrisdiction of P3B.

(4) In the event that WPLN uses Certificate of Residence as intended in paragraph(3), WPLN shall remain to be obligated to fill out Form DGT-1 other than Part IIIor Form DGT-2 other than Part III.

(5) The period specified in SKD WPLN as intended in paragraph (1) sub-paragraphe shall be a maximum of 12 (twelve) months.

(6) Form DGT-1 or Form DGT-2 shall use form with the format as specified inAttachment to this Director General Regulation.

Article 7

(1) Form DGT-1 shall be used by WPLN other than WPLN which uses Form DGT-2.

(2) Form DGT-2 shall be used by:

a. WPLN which receives and/or earns incomes through Custodian inconnection with incomes from transfer of shares or bonds which aretraded or reported in capitals market in Indonesia, other than interestand dividend;

b. WPLN in the form of bank; or

c. WPLN in the form of pension fund.

CHAPTER VISKD WPLN WHICH MEETS THE OTHER CERTAIN

REQUIREMENTS Article 8

SKD WPLN shall meet the other certain requirements as intended in Article 2paragraph (2) sub-paragraph d in the event that:

a. for WPLN which uses Form DGT-1, WPLN must state in the 2nd sheet of theform that WPLN has:

1. relevant economic motive related to establishment of entity;

2. business activity which is managed by management itself and themanagement has sufficient authorities to enter into transaction;

3. fixed and non-fixed assets, which are sufficient and adequate to carryon business activity in treaty partner country or treaty partnerjurrisdiction of P3B other than assets which generate incomes fromIndonesia;

4. employee with certain skill in accordance with business field conductedin sufficient and adequate number; and

5. other activities or active businesses other than only receiving incomes inthe form of dividend, interest and/or royalty originating from Indonesia;

b. for WPLN which uses Form DGT-1 and WPLN which is required as beneficialowner based on P3B, besides having to meet the provisions as intended insub-paragraph a, WPLN must state in the 3rd sheet of the form that:

1. for individual WPLN, he does not act as Agent or Nominee; or

2. for Corporate WPLN, it does not act as Agent, Nominee, or Conduit,which must meet the following provisions:

a) has control to use or enjoy funds, assets, or rights, whichgenerate incomes from Indonesia;

b) not more than 50% of incomes shall be used to meet obligationsto other parties;

c) bears risks of assets, capitals, and/or liabilities owned; and

d) has no obligation whether written or not to give income which isreceived from Indonesia to other parties partly or entirely; and

c. for WPLN which uses Form DGT-2, WPLN must state in Part II of the form thatWPLN:

1. constitutes tax subject of treaty partner country or of treaty partnerjurrisdiction of P3B based on tax law in that country; and

2. does not act as Agent, Nominee, or Conduit on incomes received, in theevent that WPLN is required as Beneficial Owner based on P3B.

CHAPTER VIIABUSE OF P3B

Article 9

(1) Abuse of P3B as intended in Article 2 paragraph (2) sub-paragraph e occurs inthe event that the main purpose or one of the main purposes of arrangement of

transaction is to obtain Benefits of P3B as well as contrary to the objectives andpurposes of the entering into of P3B.

(2) Abuse of P3B as intended in paragraph (1) shall not occur in the event thatWPLN has:

a. economic substance in the establishment of entity or the implementationof transaction;

b. legal form same as economic substance in the establishment of entity orthe implementation of transaction;

c. business activity which is managed by management itself and themanagement has sufficient authorities to enter into transaction;

d. fixed and non-fixed assets, which are sufficient and adequate to carryon business activity in treaty partner country or treaty partnerjurrisdiction of P3B other than assets which generate incomes fromIndonesia;

e. employee in sufficient and adequate number with certain expertise andskill in accordance with business field conducted by company; and

f. activities or active businesses other than only receiving incomes in theform of dividend, interest and/or royalty originating from Indonesia.

(3) Activities or active businesses as intended in paragraph (2) sub-paragraph fshall be activities or businesses conducted actively by WPLN in accordancewith the actual circumstance which is shown by costs spent, efforts taken, orsacrifices made, relating directly to business or activity in the context ofprocuring, collecting, and maintaining incomes, including significant activitiesperformed by WPLN to maintain survival of entity.

(4) In the event that there is difference between legal form of a structure/scheme oftransaction and its economic substance, taxation treatment shall be applied inaccordance with the provisions applicable based on its economic substance(substance over form) as intended in Article 9 paragraph (2) sub-paragraph a.

CHAPTER VIIIBENEFICIAL OWNER

Article 10

(1) WPLN shall meet the provisions as Beneficial Owner as intended in Article 2paragraph (2) sub-paragraph f in the event that:

a. for individual WPLN, he does not act as Agent or Nominee; or

b. for corporate WPLN, it does not act as Agent, Nominee, or Conduit,which must meet the following provisions:

1. has control to use or enjoy funds, assets, or rights whichgenerate incomes from Indonesia;

2. not more than 50% of corporate incomes shall be used to meetobligations to other parties;

3. bears risks of assets, capitals or liabilities owned; and

4. has no obligations whether written or not to forward incomesreceived from Indonesia to other parties partly or entirely.

(2) Referred to as corporate incomes as intended in paragraph (1) sub-paragraph bsub sub-paragraph 2 shall be the entire WPLN incomes in any name and formwhatsoever as well as from any source, in accordance with unconsolidatedfinancial statement of WPLN.

(3) The determination of value of 50% incomes which are used to meet theobligation as intended in paragraph (1) sub-paragraph b sub-sub-paragraph 2shall not cover:

a. the granting of remuneration to employee which is given fairly in workrelationship;

b. other costs commonly spent by WPLN in carrying on his business; and

c. profits split in the form of dividend to shareholders.

CHAPTER IXMISCELLANEOUS PROVISIONS

Article 11

(1) In the event that income recipient constitutes Government of treaty partnercountry or of treaty partner jurrisdiction of P3B, Central Bank or certaininstitutions the name of which is expressly mentioned in P3B or already agreedby tax authorities in Indonesia and tax authorities in treaty partner country ortreaty partner jurrisdiction of P3B, the application of P3B can be performed bynot using Form DGT-1 or Form DGT-2.

(2) Income recipient as intended in paragraph (1) shall be obligated to submitCertificate of Residence which meets the requirements in accordance witharticle 6 paragraph (3) or statement letter from tax authorities in treaty partnercountry or treaty partner jurrisdiction of P3B which states that the incomerecipient constitutes party which can be exempted from tax imposition incountry of source for certain incomes based on P3B,

(3) Certificate of Residence or statement letter as intended in paragraph (2) can beused for fiscal year specified in the Certificate of Residence.

Article 12

To apply the provisions stipulated in P3B other than the provisions on Income Taxwithholding and/or collection, WPLN must submit Certificate of Residence which meetsthe provisions as intended in Article 6 paragraph (3) to Tax Service Office the workingarea of which covers residence, place of business activity or domicile of WPLN inIndonesia.

CHAPTER XTRANSITIONAL PROVISIONS

Article 13

As this Director General Regulation comes into effect:

1. SKD already legalized based on Regulation of the Director General of TaxationNumber PER-61/PJ/2009 regarding Procedures for the Application of DoubleTaxation Avoidance Agreement as amended by Regulation of the DirectorGeneral of Taxation Number PER-24/PJ/2010 and its period of validity does notyet elapse, can remain to be used until the end of the period of validity;

2. Regulation of the Director General of Taxation Number PER-61/PJ/2009regarding Procedures for the Application of Double Taxation AvoidanceAgreement as amended by Regulation of the Director General of TaxationNumber PER-24/PJ/2010, shall be revoked and declared null and void; and

3. Regulation of the Director General of Taxation Number PER-62/PJ/2009regarding Prevention from Abuse of Double Taxation Avoidance Agreement asamended by Regulation of the Director General of Taxation Number PER-25/PJ/2010, shall be revoked and declared null and void.

CHAPTER XICLOSINGArticle 14

This Director General Regulation shall come into effect on August 1, 2017.

Stipulated in Jakartaon June 19, 2017THE DIRECTOR GENERAL OF TAXATION,

signed and stamped

KEN DWIJUGIASTEADICivil Service Registration No. (NIP) 195711081984081001

Issued as a true copyTHE SECRETARY OF THE DIRECTORATE GENERAL OF TAXATIONon behalf ofHEAD OF ORGANIZATION AND MANAGEMENT DIVISIONSignedODING RIFALDICivil Service Registration No. (NIP) 197003111995031002

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Note

ATTACHMENTREGULATION OF THE DIRECTOR GENERAL OFTAXATION NUMBER PER-10/PJ/2017REGARDING PROCEDURES FOR THEAPPLICATION OF DOUBLE TAXATIONAVOIDANCE AGREEMENT

A. Provisions for Tax Withholder and/or Collector and Custodian.






1. Tax Withholder and/or Collector shall perform tax withholding and/orcollection on any income which is received or earned by Non-ResidentTaxpayer (WPLN) in accordance with the provisions stipulated in PPhLaw.

2. Tax Withholder and/or Collector must prepare slip of tax withholdingand/or collection in accordance with the provisions and proceduresapplicable and shall be obligated to submit it to WPLN.

3. Tax Withholder and/or Collector must remain to prepare slip of taxwithholding and/or collection eventhough there is no tax which iswithheld and/or collected by specifying amount of gross incomes andwriting down "ZERO" in column of amount of PPh which is withheldand/or collected. The said slip of tax withholding and/or collection is notobligated to be submitted to WPLN.

4. Tax Withholder and/or Collector shall be obligated to submit PeriodicSPT which is attached with copy of SKD WPLN already legalized andslip of tax withholding and/or collection to Tax Service Office.

5. Tax Withholder and/or Collector must ensure that WPLN meets therequirements as intended in Article 2 paragraph (2) of this Regulation ofthe Director General of Taxation to apply the provisions in P3B. TaxWithholder and/or Collector shall ensure the fulfillment of therequirements by examining SKD WPLN already submitted by WPLN.

6. Examination on SKD WPLN (Form DGT-1 or Form DGT-2) to ensurethat income recipient is non-Indonesian Resident Tax Subject must beperformed by Tax Withholder and/or Collector. In the event that incomerecipient is resident Tax Subject, Tax Withholder and/or Collector shallbe obligated to withhold and/or collect tax payable in accordance withthe provisions stipulated in PPh Law. The existance of Resident TaxSubject for Form DGT-1 is determined: 1) in Part V point 3 which specifies address of WPLN in Indonesia;

or2) in Part V point 6 which specifies that WPLN has permanent

residence in Indonesia; or3) in Part V point 7 which specifies residence of WPLN in

Indonesia; or4) in Part VI points 1,2, or 3 which specify place of establishment,

domicile, or address of head office of WPLN in Indonesia.7. Tax Withholder and/or Collector must perform examination whether the

main purpose or one of the main purposes of transaction orarrangement of transaction scheme is to obtain benefits of P3B as wellas contrary to the objectives and purposes of entering into of P3B byensuring whether SKD WPLN Form DGT-1 contains the followinganswer: 1) "Yes" in Part V Point 4; or2) "Yes" in Part VI Point 5.P3B shall not be applied in the event that one of answers of income-receiving WPLN is in accordance with point 1) or 2) above.

8. Tax Withholder and/or Collector must perform examination whetherabuse of P3B occurs or not by ensuring whether SKD WPLN containsanswer "No" for either or the entire questions in Point 7 up to Point 10 inPart VI. P3B shall not be applied in the event that either or the entireanswers of income-receiving WPLN is/are "No".

9. Tax Withholder and/or Collector must perform examination whetherWPLN constitutes beneficial owner required in P3B by ensuring whetherSKD WPLN Form DGT-1 contains the following answer:1) "Yes" in Part V Point 5; or

2) "Yes" in Part VII Point 1; or3) "No" for either or the entire questions in Part VII Point 2 up to

Point 4; or4) "Yes" in Part VII Point 5.P3B shall not be applied in the event that one of the answers of income-receiving WPLN is in accordance with points 1), 2), 3), or 4) above.

10. In the event that income-receiving WPLN is government of treatypartner country or of treaty partner jurrisdiction of P3B, Central Bank orcertain institutions whose name is expressly mentioned in P3B oralready agreed by Indonesian tax authorities and tax authorities of treatypartner country or of treaty partner jurrisdiction of P3B, Tax Withholderand/or Collector must ensure that the institutions really constituteinstitutions intended in P3B by examing SKD WPLN and/or Certifícate ofResidence and/or statement letter with the requirements as intended inArticle 11 of this Director General Regulation.

11. For tax withholding and/or collection on incomes from transfer of sharesor bonds which are traded or reported in stock exchange in Indonesia,other than interest and dividen which are received or earned by WPLNthrough Custodian:a. Form DGT-2 must be filled out completely and must be signed or

given mark equal to signature by WPLN in accordance withcommon practices in treaty partner country or treaty partnerjurrisdiction of P3B, as well as must be legalized by signing orgiving mark equal to signature by Authorized Official inaccordance with common practices in treaty partner country ortreaty partner jurrisdiction of P3B;

b. Original Form DGT-2 shall be submitted to Custodian by income-receiving WPLN;

c. Custodian shall be obligated to submit original Form DGT-2 stillapplicable which is received from WPLN to Tax Withholderand/or Collector;

d. In the event that income-receiving WPLN receives incomes fromseveral sources, Custodian can prepare copy of the 1st sheet ofForm DGT-2 and shall request legalization to Head of TaxService Office where Custodian is registered as Taxpayer;

e. Head of Tax Service Office who legalizes copy of the 1st sheet ofForm DGT-2 shall be obligated to administer 1 (one) sheet oflegalization in KPP, and original Form DGT-2 shall be returned toCustodian;

f. If necessary for the implementation of supervision on Taxpayercompliace, audit, preliminary investigation, investigation,objection, correction, reduction or nullification of administrativesanctions, reduction or cancellation of incorrect notice of taxassessment, or reduction or cancellation of incorrect notice of taxcollection; Custodian must submit original Form DGT-2 inaccordance with the provisions of laws and regulations ontaxation applicable;

g. Tax Withholder and/or Collector shall be obligated to perform taxwithholding or collection in accordance with the provisionsstipulated in P3B based on Form DGT-2 still applicable orlegalized copy of Form DGT-2 which is submitted by Custodianand shall keep copy of Form DGT-2;

h. Tax Withholder and/or Collector shall be obligated to prepare slipof tax withholding and/or collection as well as submit it to WPLNthrough Custodian.

12. For tax withholding or collection of income which is received or earnedby WPLN in the form of bank and pension fund:a. Form DGT-2 must be filled out completely and must be signed or

given mark equal to signature by WPLN in accordance withcommon practices in treaty partner country or treaty partnerjurrisdiction of P3B, as well as must be legalized by signing orgiving mark equal to signature by Authorized Official inaccordance with common practices in treaty partner country ortreaty partner jurrisdiction of P3B; and

b. Original Form DGT-2 shall be submitted by WPLN to TaxWithholder and/or Collector

13. In the event that the requirements as intended in Article 2 paragraph (2)of this Regulation of the Director General of Taxation cannot be met byWPLN, Tax Withholder and/or Collector shall be obligated to withholdand/or collect tax payable in accordance with the provisions stipulated inPPh Law.

14. SKD WPLN and Certificate of Residence are obligated to be kept by TaxWithholder and/or Collector in accordance with the provisions of lawsand regulations on taxation applicable.

B. Administration of SKD WPLN by Tax Service Office.1. Officer who receives Periodic SPT shall be obligated to examine the

completeness of Periodic SPT of Tax Withholder and/or Collector whichis at least attached with slip of tax withholding and/or collection andlegalized copy of SKD WPLN.

2. Head of Tax Service Office shall examine the accuracy of amount of taxwhich is withheld and/or collected by verifying copy of SKD WPLNalready legalized with WPLN’s name specified in slip of tax withholdingand/or collection.

3. In the event that Tax Withholder and/or Collector do/does not yetperform their/his obligations in accordance with the provisions stipulatedin this Director General Regulation, Head of Tax Service Office shall beobligated to follow up it in accordance with the provisions applicable.

4. In the event that information contained in SKD WPLN indicates theexistance of permanent establishment of WPLN in Indonesia, TaxService Office shall send the information to Tax Service Officeauthorized to examine its accuracy or to follow up in accordance withthe provisions applicable.

5. SKD WPLN and slip of withholding and/or collection which are reportedby Tax Withholder and/or Collector shall be recorded and administeredin accordance with the provisions applicable.

C. Format of Form DGT-1

INSTRUCTIONSFOR CERTIFICATE OF DOMICILE OF NON RESIDENT FOR INDONESIA TAX WITHHOLDING (FORM DGT-1)

Number 1:Please fill in the name of the country of income recipient.

Part I income Recipient:Number 2:resident taxpayer.

Number 3:Please fill in the income recipient's name.

Number 4:Please fill in the income recipient's address.

Number 5:Please fill in the income recipient's contact number.

Number 6:Please fill in the income recipient's contact e-mail.

Part II Declaration bv the Income Recipient;Number 7:In case the income recipient is not an individual this form shall be filled by themanagement of the income recipient. Please fill in the name of person authorized tosign on behalf the income recipient. If the income recipient is an Individual, please fill inthe name as stated in Number 3.

Number 8:The Income recipient or his representative (for non individual) shall sign this form.

Number 9:Please fill in the place and date of signing.

Number 10:Please fill in the capacity of the claimant or his representative who signs this form.

Part III Certification by Competent Authority or Authorize Tax Office of the Country ofResidence: Number 11Please fill in the name of country where the income recipients is registered as aresident taxpayer.

Number 12Please fill in the starting month of the tax year to be covered.

Number 13Please fill in the ending month of the tax year to be covered (maximum 12 months fromthe starting month).

Number 14Please fill in the tax year of the income received to be covered.

Number 15Please fill in the name of country where the income recipients is registered as aresident taxpayer.

Number 16 and 17:The Competent Authorities or his authorized representative should certify this for bysigning it. The position of the signor should be filled in Number 17.

Number 18:Please fiil in the place and the date when the form is signed by the CompetentAuthorities or his authorized representative.

Number 19:

Please fill in the office address of the Competent Authority or authorizedrepresentative.

Part IV Indonesia Withholding Agent: Number 20:Please fill in the Indonesia withholding agent's taxpayer identification number.

Number 21:Please fill in the Indonesia withholding agent's name.

Number 22:Please fill in the Indonesia withholding agent's address.

Number 23:Please fill in the Indonesia withholding agent's contact number.

Number 24:Please fill in the Indonesia withholding agent's e-mail.

Part V To be completed if the Income Recipient is an individual: Number 25:Please fill in the income recipient's full name.

Number 26:Please fill in the income recipient's date of birth.

Number 27:Please fill in the income recipient's address.

Number 28:Please check the appropriate box in accordance with the claimant's facts andcircumstances.

Number 29:Please check the appropriate box. You are acting as an agent if you act as anintermediary or act for and on behalf of other party in relation with the income source inIndonesia, You are acting as a nominee if you are the legal owner of income or ofassets that the income is generated and you are not the real owner of the Income orassets.

Number 30:Please check the appropriate box. If your permanent home is in Indonesia, you areconsidered as Indonesian resident taxpayer according to the Income Tax Law and Ifyou are receive income from Indonesia, the Double Tax Conventions shall not beapplied.

Number 31:Please fill in the name of country where you ordinarily reside.

Number 32:Please check the appropriate box. In case you have ever been resided in Indonesia,please fill the period of your stay and address where you are resided.

Number 33:

Please check the appropriate box. In case you have any offices, or other place ofbusiness in Indonesia, please fill in the address of the offices, or other place ofbusiness in Indonesia

Part VI To be Completed If the Income Recipient Is non Individual: Number 34:Please fill in the country where the entity is registered or incorporeted.

Number 35:Please fill in the country where the entity is controlled or where its management issituated.

Number 36;Please fill in the address of the entity's Head Office.

Number 37:Please fill in the address of any branches, offices, or other place of business of theentity situated in Indonesia.

Number 38-43:Piease check the appropriate box in accordance with the claimant's facts andcircumstances.

Number 44:The income recipient or his representative (for non individual) shall sign this form.


Number 46:Piease fill in the capacity of the claimant or his representative who signs this form.

Part VII To be completed if the income earned are dividend, Interest, or royalty:Number 47-51:Please check the appropriate box in accordance with the claimant's facts andcircumstances.

Part VIII for Income Earned from Indonesia In Respect to which relief is claimed: Number 52:Please fill in the type of income (e.g. dividend, interest, or royalities).

Number 53:Please fill in the amount of Income liable to withholding tax under Indonesian Law (inIndonesian Rupiah)

Number 54:Please fill in the amount of Income liable to withholding tax under Double TaxConvention between Indonesia and country where the income recipients is registeredas a resident taxpayer.

Number 55:Please fill in the percentage (tariff) of withholding tax under Double Tax Conventionbetween Indonesia and country where the income recipients is registered as a residenttaxpayer.

Number 56:Please fill In the type of service rendered.

Number 57:Please fiil in the amount of Income liable to withholding tax under Indonesian Law (inIndonesian Rupiah)

Number 58:Please fill in the amount of income liable to withholding tax under Double TaxConvention between Indonesia and country where the income recipients is registeredas a resident taxpayer.


Number 60:In case your income is arising from rendering service, please fill in the perlode whenthe service is provided.

Number 61:Please fill in the type of income.

Number 62:Please fill in the amount of Income liable to withholding tax under Indonesian Law (inIndonesian Rupiah)

Number 63:Please fill in the amount of Income liable to withholding tax under Double TaxConvention between Indonesia and country where the income recipients is registeredas a resident taxpayer.



Number 66:Please fill in the piace and date of signing.


D. Format of Form DGT-2

INSTRUCTIONSFOR CERTIFICATE OF DOMICILE OF NON RESIDENTFOR INDONESIA TAX WITHHOLDING (FORM-DGT 2)

Number 1:Please fill in the name of the country of income recipient.

Part I Information of Income Recipient: Number 2:Please fill in the income recipient's taxpayer Identification number In country where theincome recipient is registered as a resident taxpayer.

Number 3:Please fill in the name of the income recipient.

Number 4:Please fill in the income recipient's address,

Number 5:Please fill in the income recipient's contact number.

Number 6:Please fill in the Income recipient's contact e-mail.

Part II Declaration by the Income Recipient:Number 7:This form shall be filled by the management of the claimant, Please fill in the name ofcountry where income recipient is registered as a resident taxpayer.

Number 8:The claimant or his representative (for non individual) shall sign this form.



Part III Certification by Competent Authority or Authorized Tax Office of the Country ofResidence.


Number 13Please fill in the ending month of the tax year to be covered.

Number 14Please fill in the tax year of the Income received to be covered.


Number 16 and 17:The Competent Authorities or his authorized representative should certify this for bysigning it, The position of the signor should be filled In Number 17.

Number 18:Please fill in the date when the form Is signed by the Competent Authorities or hisauthorized representative.

Number 19:Please fill in the office address of the Competent Authority or authorizedrepresentative.

Part IV for Income Earned from Indonesia In Respect to which relief is claimed:

Number 20:Please fill in the type of income (e.g. dividend, interest, or royalties),

Number 21:Please fill in the amount of income liable to withholding tax under Indonesian Law (InIndonesian Rupiah)

Number 22:

Please fill in the amount of income liable to withholding tax under Double TaxConvention between Indonesia and the country where the income recipients isregistered as a resident taxpayer.

Number 23:Please fill in the percentage (tariff) of withholding tax under Double Tax Conventionbetween Indonesia and the country where the Income recipients is registered as aresident taxpayer.

Number 24:Please fill in the type of service rendered.

Number 25;Please fill in the amount of income liable to withholding tax under Indonesian Law (inIndonesian Rupiah)

Number 26:Please fill in the amount of income liable to withholding tax under Double TaxConvention between Indonesia and the country where the income recipients isregistered as a resident taxpayer.

Number 27:Please fill In the percentage (tariff) of withholding tax under Double Tax Conventionbetween Indonesia and the country where the income recipients is registered as aresident taxpayer.

Number 28:In case your Income is arising from rendering service, please fill in the periode whenthe service is provided.

Number 29:Please fill in the type of income.

Number 30:Please fill in the amount of income liable to withholding tax under Indonesian Law (inIndonesian Rupiah)

Number 31:Please fill in the amount of income liable to withholding tax under Double TaxConvention between Indonesia and the country where the income recipients isregistered as a resident taxpayer.

Number 32:Please fill in the percentage (tariff) of withholding tax under Double Tax Conventionbetween Indonesia and the country where the income recipients is registered as aresident taxpayer.




Source: LOOSE LEAF REGULATION OF THE DIRECTOR GENERAL OFTAXATION YEAR 2017

unedited version revokes per-61/pj/2009, per...

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