China and Indonesia Signed Tax Treaty Protocol and Memorandum of Understanding

Date: 2016/9/4 22:30:57 Views：

On March 26, witnessed by Chinese President Xi Jinping and Indonesian President Joko Widodo, Wang Jun, Administrator of the State Administration of Taxation (SAT) and Soegeng Rahaidjo, Indonesian Ambassador to China signed the protocol for the Treaty between the Governments of the People’s Republic of China and the Public of Indonesia on Avoiding Double Taxation and Preventing Tax Evasion and the Memorandum of Understanding for the above treaty.

The protocol stipulates that the two nations will exempt VAT of the aviation enterprises engaged in international transportation of each other, which is expected to further reduce the tax burdens of enterprises, promote economic and trade exchange and cooperation between the two countries. The Memorandum of Understanding listed the financial institutions of each country which can enjoy tax exemption treatment, providing certainty for obtaining interest tax exemption treatment by wholly-owned financial institutions of the two governments in the other country.

(Source: General Office of the State Administration of Taxation)