Income Tax for Interest, Savings Deposit and Discount SBI

Understanding

• Interest on deposits and savings and discounts Bank Indonesia Certificates (SBI), subject to income tax (income tax) which are final.
• Includes interest received or accrued from deposits and savings deposits placed in banks abroad through established or domiciled in Indonesia or overseas bank branches in Indonesia.

Objects and Tariff
Interest on deposits and savings and discounts subject to final income tax for SBI:

1. 20% (twenty percent) of the gross amount, against domestic taxpayers and permanent establishments (PE).
2. 20% (twenty percent) of the gross amount or a rate based on Double Taxation Avoidance Agreement applicable to taxpayers abroad.

Withold Tax
Tax witholding and savings deposit interest and discount are:

• Interest Paying Bank;
• Pension Fund which was approved by the Minister of Finance and the Bank is to sell back Bl certificates (SBI) to other parties who are not pension funds the establishment of which has not been approved by the Minister of Finance and not the banks are required to collect tax or discount SBI.

Exempt from Income Tax Withholding

• Total deposits and savings accounts, and SBI does not exceed Rp 7.5 million (seven million five hundred thousand rupiah) and not an amount that was split burst.
• Interest and discount derived by a bank incorporated in Indonesia or overseas bank branches in Indonesia.
• Interest on time deposits and savings and discounts received or accrued SBI Pension Fund which establishment was approved by the Ministry of Finance over the funds derived from revenue sources referred to in Article 29 of Law 11 of 1992 on Pension Fund, provided by the Free Certificate (LCS), issued by the Tax Office where registered pension fund.
• Interest savings in a bank appointed by the Government in the framework of ownership Simple House and Very Simple; lots ready to build for Simple House and The Flats Very Simple or Simple accordance with applicable regulations, to live alone. The provisions of sections 3 and 4 shall be further regulated by Decree of the Minister concerned.

Misc:
An individual subject to tax in the entire country in one year for income taxes, including interest and discount does not exceed the non-taxable income, the tax has been withheld, may apply for a refund (refund).