DT9652 - Indonesia: Treaty summary

The table summarises the provisions of the treaty as they relate to income beneficially owned by UK residents. The rate shown is the ‘treaty rate’ and does not reflect taxes chargeable under domestic law before relief is given under the provisions of the treaty. The ‘treaty rate’ is the maximum rate at which Indonesia is permitted to tax income in the relevant categories under the treaty. Rates chargeable under domestic law may be higher or lower.

In all cases other conditions for relief (e.g. beneficial ownership) will have to be met before relief is due under the treaty. The text of the treaty itself should be consulted for the full details. The text of the treaty can be found on gov.uk.

Subject	Comments	Article
Portfolio dividends	15%	10
Dividends on direct investments	10%	10
Conditions for lower rate on dividends on direct investments	A company which controls directly or indirectly at least 10% of the voting power in the company paying the dividends	10
Property income dividends	See rates above	10
Interest	10% (Note 1)	11
Royalties	10%/15% (Note 2)	12
Government pensions	Taxable only in Indonesia unless the individual is a resident and national of the UK	19
Other pensions	Taxable in both the UK and Indonesia	18
Arbitration	No	N/A

Note 1: Interest is exempt from tax in Indonesia where it is:

• paid to the UK government or political subdivision, or a UK local authority
• paid in respect of a loan made, guaranteed or insured by the UK Export Credits Guarantee Department or the Commonwealth Development Corporation, or is beneficially owned by the UK Government

Note 2: The reduced rate of 10% applies to payments for the use of, or the right to use, any industrial, commercial or scientific equipment (equipment leasing payments).