Indonesia Ratifies Tax Treaty with UAE, Here Are the Rates

Indonesia has officially ratified a tax treaty with the United Arab Emirates (UAE) as a follow-up to the tax treaty on income tax (PPh) agreed by both countries in Bogor, West Java, on July 24, 2019. It comes into effect through the issuance of Presidential Regulation (Perpres) No. 34/2021 on the ratification of the agreement between the Indonesian and United Arab Emirates governments on the double taxation and income tax evasions.

The tax office spokesperson, Neilmaldrin Noor, revealed that there were four provisions on income tax agreed upon in the treaty on the right to tax the source of income on certain incomes. "The tax treaty ratification is one of our efforts in optimizing tax revenues from cross-jurisdictional economic activities, preventing double taxation, and preventing double non-taxation," he stated on Thursday (6/17).