Indonesia: Guidance on coordination of CFC rules with taxation of dividends

Guidance on the application of Indonesia’s controlled foreign country rule

Guidance on the application of Indonesia’s controlled foreign country rule

The Director General of Taxation recently issued guidance (Circular Letter No. 55 year 2021, 28 December 2021) on the application of Indonesia’s controlled foreign country (CFC) rule (Ministry of Finance regulation No. 107 year 2017 and Ministry of Finance Regulation No. 93 year 2019).

The guidance relates to the coordination of the CFC rule with the taxation of onshore and offshore dividends.

Under the guidance, the recognition and reporting of deemed dividends and actually paid dividends are done following the timing difference tax adjustment concept.

Read a March 2022 report [PDF 540 KB] prepared by the KPMG member firm in Indonesia 

 

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