Directorate General of Taxation is considering the revision of the tariff taxes foreign companies in the renegotiation of tax treaties with a large number of countries involved in economic relations.
Director General of Taxes Fuad Rahmany claimed to have been working on the renegotiation of tax treaties or tax treaties with a number of countries that have trade and investment relations. Meanwhile, countries such as Holland, Japan, Britain, South Korea, China, and Malaysia.
“Countries of us working on this again, that there is a link about trade and invest in Indonesia,” said Fuad at the office of the Ministry of Finance on Tuesday (07/24/2012).
In the process, he said renegotiation of tax treaties the Netherlands has almost finished. While efforts bersepaham with Sakura still tough.
He explained one of the renegotiation points is to change the amount of Permanent Business Entity tax rate (BUT) is commonly called the Branch Profits Tax (BPT).
BUT is subject to foreign tax or foreign companies doing business in Indonesia and tax obligations are treated relatively the same as other taxpayers in the country. While CPM is a tax levied from the net profit after tax at a rate of 20%.
“If they [BUT] had fortunately sent abroad, now is subject to final tax of 20%, the tax treaty there is dijadiin 10%. This is one of the points to be revised, “he said.
He claimed the design of the tariff changes BTP also consider the impact on the development of foreign direct investment (FDI). In the end, will also affect economic growth.
Nevertheless, he confirmed the results of any revision of the tax agreement between the state will not be detrimental to the country. Because the excess revenue is reduced or reversed CPM will have an impact on the amount of foreign investment into Indonesia.