MoF Regulation No. 157/PMK.010/2015 dated August 12, 2015

IMPLEMENTATION OF INCOME TAX TREATMENT UNDER PROVISION OF INTERNATIONAL AGREEMENT

1.    When there is differences between income tax provision under international agreement and income tax law, income tax treatment will comply with international agreement until expiration of such agreement.

2.    Minister of Finance will approve such tax treatment.

3.    International agreement is a written agreement in any particular name or form which ruled by international law and inflict rights and obligation under public law between Indonesia government and international organization or other law subject as mentioned in the attachment of this regulation.

4.    International organization is a/an intergovernmental or non government organisation/institute/institution/association/society/forum/cooperation, which objective is to increase international cooperation and formed with particular regulation or mutual relationship.

5.    Provision of income tax treatment under international agreement up to its expiration will only valid when:

a.    Such agreement is in line with international agreement law;

b.    There is no reservation or declaration regarding provision of income tax treatment in the agreement; and

c.    Already legalized in form of ratification, accession, acceptance and/or approval under international agreement law.

6.    Exempted from legalization in point c when such agreement does not require any legalization and it contain only technical issue on its master agreement.

Indonesia citizen who receive income in form of salary or other payment from international organization, will be taxed in accordance with regulation under income tax law.

Exempted from this provision when such agreement is clearly stated income tax exemption for salary or other payment received by Indonesia citizen.

This regulation will be effective at promulgation date.