On 31 December 2018, the Indonesian Minister of Finance (“MoF”) issued Regulation Number 212/PMK.03/2018 (“PMK 212/2018”) concerning Withholding Tax on Interest from Deposits, Savings, and Bank of Indonesia Discount Certificate (“SBI Discount”). This regulation revokes MoF Regulation No. 212/PMK.010/2016 (“PMK 212/2016”).

Income in the form of interest received or obtained from deposits and savings, as well as SBI Discount, including interest received from deposits and savings placed overseas through a bank established or domiciled in Indonesia, or a foreign bank branch in Indonesia, is subject to final income tax. The withholding tax is withheld from:

  1. Time Deposit
  2. Certificate of Deposit
  3. Deposit on call

This withholding tax is not applied to :

  1. Domestic individual Taxpayers whose entire income in 1 (one) Tax Year, including interest and discount, does not exceed the Non-Taxable Income threshold;
  2. Interest on Deposits, Savings, and SBI Discount with an amount not exceeding IDR 7,500,000 (seven million five hundred thousand rupiah);
  3. Interest and SBI Discount received or obtained by a bank established in Indonesia or a foreign bank’s branch in Indonesia;
  4. Interest on Deposits and Savings as well as SBI Discount received or obtained by a Pension Fund whose establishment has been approved by the MoF or that has obtained permission from the Financial Services Authority (Otoritas Jasa Keuangan / “OJK”) whose funds are obtained from sources of income as referred to in Article 29 of Law Number 11 of 1992 concerning Pension Funds;
  5. Interest on savings at banks appointed by the Government in the context of ownership of modest and very modest houses (“rumah sederhana dan sangat sederhana”), plots ready to build for modest and very modest houses, or modest apartments (“rumah susun sederhana”) under the applicable regulations, to be occupied by the owners.

PMK 212 of 2018 came into force from 31 December 2018.

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