Indonesia President Signs Law Establishing VAT, Corporate Tax Incentives

The Indonesian President Nov. 2 signed Law No. 11/2020, establishing VAT and corporate tax incentives. The law includes measures: 1) establishing a 10 percent VAT rate on coal mining products; 2) exempting specific goods from VAT; 3) providing tax exemptions for foreign-sourced income earned by tax residents that is invested in Indonesia for qualifying expatriate tax residents for the first four years of their Indonesian tax residency; 4) providing tax exemptions for domestic dividend distributions to corporate tax resident shareholders and for qualified dividends paid by offshore companies; 5) reducing the current 20 percent withholding tax rate; 6) expanding the ...