Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Double Taxation Relief Manual

From
HM Revenue & Customs
Updated
, see all updates

Indonesia: Dividends

The Indonesian tax deducted from dividends at the agreement rate of 15 per cent (or 10 per cent where the recipient of the dividend is a United Kingdom resident company controlling, directly or indirectly, at least 10 per cent of the voting power in the Indonesian company paying the dividend) qualifies for credit as a direct tax (see INTM164010(c)).

The reduction to the above rates is only given where the dividend is not effectively connected with (see INTM153110 fifth sub-paragraph.) a business carried on by the United Kingdom recipient through a permanent establishment in Indonesia.

Where the recipient of the dividend is a United Kingdom company controlling, directly or indirectly, at least 10 per cent of the voting power in the Indonesian company paying the dividend, credit may also be given for the underlying tax (see INTM164010(d)) (Article 21(1)(b)).