Hong Kong–Indonesia Comprehensive DTA Enters into Force

Posted by Reading Time: < 1 minute

Apr. 8 – The Hong Kong-Indonesia DTA has taken effect from April 1, 2013. The DTA with Indonesia was signed in March 2010, but has only recently been ratified by Indonesia. The Indonesian DTA potentially makes Hong Kong one of the more attractive locations for investing into Indonesia. Under the DTA, the withholding tax on dividends, interest and royalties can be seen below.

Hong Kong’s DTA with Indonesia compares favorably with the DTAs signed by Indonesia with Singapore and the Netherlands, and means Hong Kong should be considered as a holding company location for direct investment into Indonesia. For instance, the DTAs with Singapore and the Netherlands only provide for a 10 percent withholding tax rate on dividends compared with 5 percent under the DTA with Hong Kong. The full DTA between Indonesia and Hong Kong is archived under the Indonesia treaty section on this website.