Indonesia MOF Issues Ministerial Regulation on Taxation of Financial Technology Implementation Services

The Indonesian Ministry of Finance March 30 issued Ministerial Regulation No. 69/PMK.03/2022 on the taxation of financial technology implementation services. The regulation includes: 1) a 15 percent withholding tax rate on the gross amount of loan interest for resident taxpayers and permanent establishments (PE); 2) either a 20 percent withholding tax rate on the gross amount of loan interest for a non-PE foreign taxpayer or the application of tax treatment under the relevant DTA provisions; 3) VAT imposed on the delivery of specific financial technology services; and 4) provisions clarifying that the money and specific reward points in digital media ...