2019 Indonesia-United Arab Emirates Income Tax Treaty Available

<p>Tax Analysts has obtained the English text of the Indonesia-United Arab Emirates income tax treaty signed July 24, 2019, in Bogor, Indonesia.</p> <p>Under the treaty, dividends are taxable at a maximum rate of 10 percent. An exemption applies if the dividends are paid to the government of the other contracting state. Interest is taxable at a rate not to exceed 7 percent. Exemptions apply if the interest is derived by the government of the other contracting state including the local authorities or political subdivisions thereof, or its central bank, or any financial institution controlled by that government, or if the interest is derived on loans guaranteed by that government.</p> <p>Royalties are subject to a 5 percent tax rate. The treaty provides for the credit method for the elimination of double taxation. However, the tax laws in force in the contracting states will continue to govern the taxation of income in the respective states and the amount of the credit may not exceed the amount of the tax on that income in the state of residence that is computed in accordance with its tax laws. </p> <p>The treaty will enter into force upon the exchange of ratification instruments and its provisions will generally apply from January 1 of the year following entry into force. Once in force and effective, the treaty will replace the existing agreement, which was signed November 30, 1995, and has been in effect since January 1, 1997. </p>

<p><a href="/lr/resolve//76msl">Arabic text</a>; <a href="/lr/resolve//76msk">Indonesian text</a>. <a href="/lr/resolve//29s94">Prior coverage</a>. <a href="/lr/resolve//1wv7b">1995 Indonesia-UAE tax treaty</a>; <a href="/lr/resolve//1x3v5">Arabic text</a>; <a href="/lr/resolve//1x3v4">Indonesian text</a>.</p>

<p>Tax Analysts has obtained the English text of the Indonesia-United Arab Emirates income tax treaty signed July 24, 2019, in Bogor, Indonesia.</p>

Tax Analysts has obtained the English text of the Indonesia-United Arab Emirates income tax treaty signed July 24, 2019, in Bogor, Indonesia. Under the treaty, dividends are taxable at a maximum rate of 10 percent. An exemption applies if the dividends are paid to the government of the other contracting state. Interest is taxable at a rate not to exceed 7 percent. Exemptions apply if the interest is derived by the government of the other contracting state including the local authorities or political subdivisions thereof, or its central bank, or any financial institution controlled by that government, or if the interest is derived on loans guaranteed by that government. Royalties are subject to a 5 percent tax rate. The treaty provides for the credit method for the elimination of double taxation. However, the tax laws in force in the contracting states will continue to govern the taxation of income in the respective states and the amount of the credit may not exceed the amount of the tax on that income in the state of residence that is computed in accordance with its tax laws.  The treaty will enter into force upon the exchange of ratification instruments and its provisions will generally apply from January 1 of the year following entry into force. Once in force and effective, the treaty will replace the existing agreement, which was signed November 30, 1995, and has been in effect since January 1, 1997. 

<h4>Rate Table Instructions</h4> <ul> <li>You must enter a rate for each rate type</li> <li>Enter only one rate value per row</li> <li>You may leave the country columns blank if the rate is the same for both countries</li> <li>Country names (if entered) must exactly match the jurisdictions</li> <li>Leave the Partner Country column blank if you want the rate to apply to all partners of the Main Country</li> <li>Enter "n/a" in each rate row to hide the partner in the Main Country table</li> <li>Note that the same rates may apply for Main Country and Partner Country or the Main Country may apply different rates to the Partner Country</li> </ul> <table> <tbody> <tr> <th> <div>Rate Type</div> (Dividends, Interest, Royalties)</th> <th>Main Country</th> <th>Partner Country</th> <th>Rate</th> <th>Footnote 1</th> <th>Footnote 2</th> <th>Footnote 3</th> <th>Footnote 4</th> </tr> <tr> <td>Dividends</td> <td> </td> <td> </td> <td>10</td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr> <td>Interest</td> <td> </td> <td> </td> <td>7</td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr> <td>Royalties</td> <td> </td> <td> </td> <td>5</td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> </tbody> </table>

Indonesia - United Arab Emirates: 2019 Income Tax Agreement and Final Protocol

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2019 Indonesia-United Arab Emirates Income Tax Treaty Available