04 Feb 2020
- The Agreement
between the Government of the Republic of Singapore and the Government of the
Republic of Indonesia for the Elimination of Double Taxation with respect to
Taxes on Income and the Prevention of Tax Evasion and Avoidance (“DTA”) was
The signing took
place in Indonesia between Minister in the Prime Minister’s Office and Second
Minister for Finance and Education, Indranee Rajah, and Indonesian Minister of
Finance, Sri Mulyani Indrawati. The signing was witnessed by President Halimah
Yacob and Indonesian President Joko Widodo.
DTA between the two countries has been in effect since 1992. Amongst other
changes, this update lowers the withholding tax rates for royalties and branch
profits, and provides for tax exemption in the source State for certain capital
gains. It also incorporates internationally-agreed standards to counter treaty
abuse. The agreement will benefit businesses in both Singapore and Indonesia as
well as boost bilateral trade and investment flows between the two countries.
- The full text of the updated DTA is available here. The updated DTA will enter into force after its ratification by both countries.
MINISTRY OF FINANCE