Dividend Income Tax Incentive, A Boon for INA Investors


The government officially sets an income tax rate (PPh) of 7.5 percent for dividends received by third parties or investors working with the Indonesia Investment Authority (INA). The policy is contained in Government Regulation (PP) No. 49/2021 on the Taxation Treatment of Transactions Involving INA and their own entities.

The regulation came into force as of February 2, 2021. Article 12 of paragraph 3 explains that the income tax on a 7.5 percent dividend is intended for foreign tax subjects (SPLN) who are third parties of INA's direct partners. The form of its cooperation is the subject of domestic corporate tax.

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