DGT Circular Letter No. SE-56/PJ/2015 dated July 24, 2015
REVOCATION OF CIRCULAR LETTER NO. SE-09/PJ.42/1997 CONCERNING INCOME TAX TREATMENT FOR LIFE INSURANCE BENEFITS (GENERAL INOME TAX SERIAL NO. 47)
Confirmation in DGT Circular Letter No. SE-09/PJ.42/1997 concerning Income Tax treatment for life insurance benefits which stated excess of saving benefits over premium paid will be considered equally as revenue from interest on saving account or time deposit and subject to 15% of final income tax.
Such confirmation is not in accordance with Government Regulation No. 51 Year 1994 concerning income tax on interest on time deposit and savings also Bank Indonesia certificate discount and Government Regulation No. 131 Year 2000 which revoking PP 51 Year 1994, which stated final income tax only taxed for interest on time deposit or savings in bank or interest on Bank Indonesia certificate paid by Bank Indonesia.
Excess of saving benefits over premium paid is not including in PP no. 131 Year 2000.
Considering such regulation, DGT Circular Letter No SE-09/PJ.42/1997 is void and no longer valid.