Resident Tax Payer Indonesian Shareholder
of Double Taxation Avoidance “Tax Treaty” apply, can be charged with a lower rate if the dividend recipient is the
actual recipient of such dividend and can give original residence certificate issued by the authorities in the origin
country signed the Tax Treaty with Indonesia. To date, Indonesia has established cooperation and engages in Tax
Treaty with more than 50 countries including Australia, Belgium, Canada, France, Germany, the Netherlands, Singapore,
Sweden, Switzerland, England and the United States of America.
DIVIDEND DISTRIBUTED TO INDONESIAN SHAREHOLDERS
Dividend declared by the Company and distributed to Indonesian shareholders is subjected to the income tax pursuant to
article 23 of the Income Tax Law No. 36 Year 2008 at a rate of 15 fifteen percent for corporate taxpayer and the final tax
income and at the rate of 10 for individual taxpayer. Pursuant to Article 4 3 of Law No. 7 year 1983 regarding
Income Tax as amended several times and latest amended by Income Tax Law No. 36 Year 2008, it has been stipulated that
what be excluded from the tax object is: “dividends or profits of share derived or earned by limited liability companies as
resident taxpayers, cooperatives, state owned enterprises, or regionally owned enterprises, from investments in business
entities established and domiciled in Indonesia with the following requirements:
1. the dividend is derived from retained earnings, and
2. In the case where the recipient of a dividend is a limited liability company, or state or local government-
owned enterprise, its share ownership in the entity paying the dividend must not be less than 25 twenty
five percent of the total paid capital” In accordance with Regulation of the Minister of Finance of
the of Republic of Indonesia No. 234PMK.032009 dated December 29, 2009 regarding Certain Field of Investment that
Provides Earnings to the Pension Fund which is exempt from taxable Income Tax that the income derived or earned by that
Pension Fund whose establishment was approved by the Minister of Finance from investment in the form of share dividends in
limited liability companies listed at the stock exchange in Indonesia is exempt from taxable income tax.
PROFIT FROM THE SALE OF SHARE
The estimated net income is of 25 twenty five percent of the selling price in accordance with Article 1 paragraph 4
Regulation of the Minister of Finance No. 258PMK.032008 regarding Income Tax Cut, Article 26 regarding Income from the
Sale or Transfer of Shares as referred to in Article 18 Paragraph 3c the Income Tax Law on Income derived or earned
by Foreign Taxpayers. Thus, the effective rate is 20 x 25 x selling price or equal to 5 of selling price.
Pursuant to Regulation of Government of Republic of Indonesia No. 14 Year 1997 on sale of shares on the Jakarta Stock
Exchange is subject to final income tax of 0.1 zero point one percent of the gross value of sale transactions which are
cut by the stock broker. No other payable tax. But the founding shareholders subject to additional income tax final
at 0.5 zero point five percent of the share price at the time the initial public offering is conducted despite the
share is held or sold as an option on the income of founders’ share sale transactions may be subject to the Income Tax in
accordance with the general rate as referred to in Article 17 Law No. 36 Year 2008 at the time the stock is sold.
In some of the Tax Treaty there is provision which multiplies the use of Income Tax. In this case, the income recipient must
provide an original residence certificate issued by the authorities in the origin country that signed the Tax Treaty
with Indonesia.
PROSPECTIVE BUYERS
OF SHARES
IN THIS
PUBLIC OFFERING
ARE EXPECTED TO CONSULT WITH RESPECTIVE TAX CONSULTANTS ON THE TAX DUE ARISING FROM THE PURCHASE, OWNERSHIP OR SALE OF SHARES
PURCHASED THROUGH THIS PUBLIC OFFERING.
XV. THE UNDERWRITING