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New policy offers reduced fixed deposit income interest tax for exporters
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A port worker reads a document at the Tanjung Priok container port in North Jakarta. (Shutterstock.com/dani daniar)
T
he Finance Ministry has issued a new regulation on an new tax incentive that reduces interest income taxes for exporters that place their foreign exchange earnings as fixed deposits in Indonesia.
The tax incentive is stipulated in Finance Ministry Regulation (PMK) No. 212/PMK.03/2018 on reduced taxes for the interest income made from fixed deposits at banks and as Bank Indonesia certificates (SBI). The new regulation is a revision of PMK No. 26/PMK.010/2016.
Under the new regulation, the final interest income tax for export earnings deposited in US dollars are: 10 percent for one-month fixed deposit accounts, 7.5 percent for three months, 2.5 percent for six months and zero percent for deposits more than six months.
Meanwhile, the final interest income tax on foreign exchange earnings placed in rupiah-denominated fixed deposit accounts at domestic and international banks in Indonesia are: 7.5 percent for one-month fixed deposits, 5 percent for three months and zero percent for six months and longer.
Under the revised regulation, the government requires natural resources exporters – including mining, plantation, forestry and fishery companies – to deposit their foreign exchange earnings in Indonesia.
“The detailed list of commodities is stipulated in a Finance Minister Decree (KMK),” said Susiwijono Moegiarto, the Secretary to the Coordinating Economic Minister, as reported by kontan.co.id.
