Indonesia Tax Agency Explains VAT Treatment for Insurance Agents

The Indonesian Directorate General of Taxation July 11 explained the VAT treatment for insurance agents. The announcement includes: 1) the definition of insurance agents; 2) tariff rates of 10 percent of the VAT rate on commissions or rewards in any form paid to insurance agents; 3) an exemption from reporting business activities for agents who don’t have other businesses with gross turnover exceeding 4.8 billion Indonesian rupiahs (US$320,072); 4) a clarification on the consideration of an insurance agent as a taxable entrepreneur having a tax identification number (TIN); 5) the registration exemption with the tax office for agents having a ...