With the gradual progress of the Belt and Road Initiative, in order to help Chinese “going global” enterprises and individuals understand the investment environment and relevant tax policies of the Republic of Indonesia, we have compiled the Tax Guide for Chinese Residents’ Investment in the Republic of Indonesia.

The Guide consists of six chapters.

The first chapter introduces Indonesia’s national profile and investment environment.

The second chapter introduces Indonesia’s tax system and major taxes, including: corporate income tax, personal income tax, value-added tax, luxury sales tax, customs, excise tax, land and building tax, stamp duty, etc.

The third chapter introduces the tax collection and administration system of Indonesia, including the establishment and responsibilities of the tax system administration, as well as the tax collection and administration of resident taxpayers and non-resident taxpayers.

The fourth chapter introduces the relevant contents of special tax adjustment, including related party transactions, contemporaneous data, transfer pricing investigation, advance pricing arrangements, controlled foreign enterprises, cost sharing agreement management capital weakening, etc.

The fifth chapter introduces the tax treaty between China and Indonesia, mutual negotiation procedures, and the prevention of tax treaty disputes.

The sixth chapter introduces the possible tax risks of investment in Indonesia, including tax declaration risk, investigation and identification risk, tax treaty treatment risk, information reporting risk, etc.