Beginning on January 1, 2019, foreign taxpayers who receives income from sources in Indonesia and would like to access the benefit of Double Taxation Avoidance Agreement must use the new template of DGT Form (Indonesian format of Certificate of Residence) as regulated by Director General of Tax (DGT) regulation No. PER-25/PJ/2018, which supercedes the previous regulation PER-10/PJ/2017 concerning proecdures for application of double taxation agreements.
Below are the significant changes on the new regulation:
|Amendments||Until 31 dec 2018||After 1 Jan 2019|
|Type of form||Three pages||Two pages|
|Number of pages||Three pages||Two pages|
|Submission channel||Manual submission||Electronic submission|
|Validity||Maximum of 12 months, without crossing caendar year (example: July – December 2018)||Maximum of 12 months, without crossing caendar year (example: July – June 2019)|
|Submission time||Every month, together with the monthly tax return||One-time submission, for the period covered in the DGT form|
In general, this new regulation is intended to simplify the reporting process and move from manual to electronic submission. For more information regarding this, please contact us.