Indonesia tax: New monthly tax return forms released

To accommodate changes in the Indonesian Income Tax Law and related regulations, the Director General of Taxation recently issued a regulation that introduces new monthly tax return forms for various types of withholding tax (articles 23/26, 4(2), 15 and 22 withholding tax). The following changes are made in the new forms:

- The new articles 22 and 23 withholding tax slips accommodate the application of the 100% higher withholding tax rate for vendors that do not have a Tax ID number.

- The following tax objects are included in the article 4(2) tax return form:
     . Dividends paid to domestic individual taxpayers and interest on savings paid by cooperatives to individual members of the cooperative. Previously, these payments were subject to a non-final withholding tax and were reported under the article 23/26 tax return form;
     . Derivative transactions in the form of future contracts traded on the stock exchange; and
     . Government commercial paper.

- The following new tax objects for article 26 withholding tax are included in the new article 23/26 tax return form:
     . Premium swap and other hedging transactions;
     . Profits from debt release and discharge; and
     . Income from the sale or transfer of shares.

- The sale of highly luxurious goods, which are a new object for article 22 withholding tax, is included in the article 22 tax return form.

The regulation is effective 1 October 2009, so the new forms should be used starting from the October 2009 tax return filing.