COPY REGULATION OF THE MINISTER OF FINANCE NUMBER 157/PMK.010/2015 REGARDING IMPLEMENTATION OF INCOME TAX TREATMENT BASED ON THE PROVISIONS OF INTERNATIONAL TREATY BY THE GRACE OF GOD ALMIGHTY THE MINISTER OF FINANCE, Considering : whereas to implement Article 26 (3) of Government Regulation Number 94 of 2010 regarding Calculation and Redemption of Income Tax in the Current Year, it is necessary to stipulate the Regulation of the Minister of Finance regarding Implementation of Income Tax Treatment based on Provisions of International Treaty; In view of : Government Regulation Number 94 of 2010 regarding Calculation and Redemption of Income Tax in the Current Year (Supplement Number 5183 to the State Gazette of the Republic of Indonesia Number 161 of 2010); BE IT HEREBY RESOLVED: To stipulate : REGULATION OF THE MINISTER OF FINANCE REGARDING IMPLEMENTATION OF INCOME TAX TREATMENT BASED ON PROVISIONS OF INTERNATIONAL TREATY. Article 1 As intended herein, the term Income Tax Law shall mean Law Number 7 of 1983 regarding Income Tax as amended for several times and the latest by Law Number 36 of 2008.
-2- Article 2 (1) In case of inconsistency between the provisions on Income Tax contained in international treaty and those stipulated in the Income Tax Law, the Income Tax treatment shall be based on the provisions of such international treaty until the expiration thereof. (2) The implementation of tax treatment as referred to in paragraph (1) shall be subject to prior approval of the Minister of Finance. (3) The international treaty as referred to in paragraph (1) shall be the agreement in a certain form and name specified under the international law executed in writing and arising rights and obligations in the field of public law between the Government of Indonesia and an international organization or other international law subject as listed in the Appendix hereto which forms an inseparable part of this Ministerial Regulation. (4) The international organization as referred to in paragraph (3) shall constitute organization/ agency/ institution/ association/ forum/ cooperation, inter-government and non-government, with a view to improving the international cooperation and shall be established under certain rules and upon mutual agreement. (5) The Income Tax treatment based on the provisions of international treaty until its expiration as referred to in paragraph (1) may be implemented on condition that: a. such international treaty has been in compliance with the Law on International Treaty;
-3- b. there is no reservation or declaration with respect to provisions on Income Tax treatment in such international treaty; and c. Ratification, accession, acceptance and/or approval shall have been made by way of promulgation of statutory regulations in accordance with the Law on International Treaty. (6) The international treaty as referred to in paragraph (3) may be excluded from the obligation to fulfill the requirements for ratification by way of promulgation of statutory regulations as referred to in paragraph (5) (c) if such international treaty does not require any ratification for its enforcement and it contains technical materials or constitutes technical implementation of its master agreement. Article 3 (1) Any income in the form of salary or any other payment from the international organization received by any official or employee who is Indonesian citizen shall be subject to Income Tax in accordance with the provisions of Income Tax Law. (2) If the international treaty as referred to in Article 2 (1) expressly regulates a provision on exemption from Income Tax of salary or any other payment received by officials or employees who are Indonesian Citizen, such income shall be excluded from the provision as referred to in paragraph (1). Article 4 This Ministerial Regulation shall come into effect since the date of its promulgation.
-4- For public cognizance, this Ministerial Regulation shall be announced by publishing it in the State Gazette of the Republic of Indonesia. Enacted in Jakarta on August 12, 2015 MINISTER OF FINANCE, Signed. BAMBANG P. S. BRODJONEGORO Promulgated in Jakarta On August 13, 2015 MINISTER OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA, Signed. YASONNA H. LAOLY STATE GAZETTE NUMBER 1189 OF 2015 Certified true copy HEAD OF GENERAL BUREAU on his behalf HEAD OF ADMINISTRATION DEPT. OF THE MINISTRY Signed and sealed GIARTO NIP 195904201984021001
-5- INTERNATIONAL ORGANIZATIONS SUBJECT TO TAX TREATMENT AS REGULATED IN THE PROVISIONS OF INTERNATIONAL TREATY 1. Australia-Indonesia Technical Partnership 2. Canada-Indonesia Technical Partnership 3. India-Indonesia Technical Partnership 4. England-Indonesia Technical Partnership 5. Japan-Indonesia Technical Partnership 6. New Zealand-Indonesia Technical Partnership 7. Netherlands-Indonesia Technical Partnership 8. Russia-Indonesia Technical Partnership 9. Germany-Indonesia Technical Partnership 10. France-Indonesia Technical Partnership 11. Poland-Indonesia Technical Partnership 12. United States-Indonesia Technical Partnership (USADI: United States) 13. Switzerland-Indonesia Technical Partnership 14. Italy-Indonesia Technical Partnership 15. Belgium-Indonesia Technical Partnership 16. Denmark-Indonesia Technical Partnership 17. Korea-Indonesia Technical Partnership 18. Finland-Indonesia Technical Partnership 19. Malaysia-Indonesia Economic and Technical Partnership 20. Singapore-Indonesia Economic and Technical Partnership APPENDIX REGULATION OF THE MINISTER OF FINANCE NUMBER 157/PMK.010/2015 REGARDING IMPLEMENTATION OF INCOME TAX TREATMENT TO INTERNATIONAL ORGANIZATIONS AND/OR OFFICIALS REPRESENTING INTERNATIONAL ORGANIZATIONS BASED ON THE PROVISIONS OF INTERNATIONAL TREATY
-2- -6-21. RRC-Indonesia Economic, Trade and Technical Partnership 22. Vietnam-Indonesia Economic, Science and Technical Partnership 23. Thailand-Indonesia Economic and Technical Partnership 24. Mexico-Indonesia Science and Technical Partnership 25. Saudi Arabia-Indonesia Technical Partnership 26. Iran-Indonesia Technical Partnership 27. Pakistan-Indonesia Technical Partnership 28. Philippines-Indonesia Technical Partnership 29. Netherlands-Indonesia Cultural Partnership 30. Japan-Indonesia Cultural Partnership 31. Egypt/RPA-Indonesia Cultural Partnership 32. Austria-Indonesia Cultural Partnership 33. DMTCI/CLUSA-Indonesia Technical Partnership in Cooperatives 34. Islamic Development Bank 35. ADB (Asian Development Bank) 36. IFC (International Finance Corporation) 37. JICA (Japan International Cooperation Agency) 38. JBIC (Japan Bank for International Cooperation) 39. ICD (Islamic Corporation for Development of the Private Sector) 40. OECD (Organization for Economic Cooperation and Development) Certified true copy HEAD OF GENERAL BUREAU on his behalf HEAD OF ADMINISTRATION DEPT. OF THE MINISTRY Signed and sealed GIARTO NIP 195904201984021001 MINISTER OF FINANCE, Signed. BAMBANG P. S. BRODJONEGORO