Direction

1. The answer should be accompanied with the reason from

tax treaty!
2. Treaty:Indonesia vs Nederland
Indonesia vs Singapore
Indonesia vs germany
Question 1
PT ABC is limited liability company incorporated and based
in Indonesia .PT ABC is a subsidiary of net B.V,a
corporation incorporated and based in
netherland.further,PTABC has made a loan agreement
with net b.v with the following terms and condition :
a.The loan is given indefinite payment period
B.The interest payment is 15% of PT ABC’s profit

Which article of the tax treaty,if any,shall be applicable for

payment of interest?

Question 2
PT INDONESIA FIBER OPTIC(PTIFO ) owned a leased line
Fiber optic DS3 and STMI.The route that PTIFO owned is
 From Jakarta to the borderline between Batam and
Singapore (borderline) PTIFO establish a subsidiary in Singapore
namely Indonesia fiber optic pte ltd (IFOPL).IFOPL leased
several fiber optic lines from a company in singapore for the
route from the bonderline to Singapore this connect the fiber
optic owned by PTIFO from Jakarta to Singapore
In juni 2010 PT TELCOM engegad PTIFO to provide STMI
fiber optic connection from Jakarta to Singapore for 12 month
contract for this purpose,IFOPL paid USD 10,000 (Gross) per
month to IFOPL for the fiber optic connection from the
bonderline to Singapore.
In July 2010 SINGTEL engaged IFOPL to provide STMI fiber
optic connection from Singapore to Jakarta for 12 month
contract for this purpose IFOPL paid USD 50,000 (Gross) per
month to PTIFO for the fiber optic connection from Jakarta to
the bonderline
Assume the Singapore withholding tax rate for fiber optic
leased line to non resident is 5% and that all entities involved
are tax resident in their respective jurisdiction
Question:
What are the withholding tax implication?

Question 3
Geo –Randal Gmbh is company incorporated and based in
germany,engegad in the construction business .for a project in
Indonesia ,geo randal Gmbh is assigned to construct a row of
house within a real estate site .to this end ,Geo Randal has
divided its assigned to several sub –contractor.
- Subcontractor A is assigned to construct one luxurious
grande vila .This assignment is carried out within a period
0f 2 months by contractor A.Contractor A is tax resident
of Singapore
- Sub contractor B is assigned to construct a medium sized
villa.This assignment is carried out within the next 2
months period by contractor B.Contractor B.Contractor B
is tax resident of japan
- Subcontractor C is assigned to contruct a small villa. This
assignment is carried out within the next 2 months
period by contractor C .Contactor C is tax resident of
Indonesia.
- It is further known ,that subcontractor A,B and C are
related parties of Geo-Randal Gmbh.
- Geo-Randal Gmbh it self will set up the finishingof the
concerning construction project.This is carried out by
Geo-Randal Gmbh within the next 0ne period
- The project was completed within the year 2010
 Does Geo-Randal constitute a permanent establishment
in Indonesia.

Question 4
Boeken BV is company incorporated and based in the
Netherland, engaged in the business of second-hand book
sales .In view of expanding its collection of history books
,boeken BV has rented and office space in Indonesia .The
activities carried out in this building are limited to storing and
delivery of book.
Does Boeken BV form a permanent establishment under
the tax treaty between Indonesia and the Netherlands?

ESSAY 1
Define the contracting state in which the taxing right
prevail and the Indonesian .tax obligation (if any) for the
followings (assume that 1 US$=IDR 10.000):
a) Mr.Jono ,an Indonesian resident ,is an employee of
singship co ,a Singapore ship company which is
operated in the international traffic .during his service
aboard the ship in the year 2014, he received total
income of US$ 36.000
 b) In the year 2013,port of Singapore Authority provides
loan to the government of Indonesia amounting to US$
300 billion with interest rate of 15% (fifteen percent)
per year .in the year 2014 , Indonesia paid interest of
US$ 45 billion.

In providing the answer to the above , discuss the relevant

articles in the related tax Treaty and/or Indonesian income tax
act.
Question:
Please indicate whether the followings constitute
permanent establishment in any of the contracting states:
a. An installation or assembly project which exist from 6
march 2010 until 20 september 2014;
b. Supervisory activities in other state for 6 months in
connection with a construction .installation or assembly
project which is being undertaken in that other state;
c. A person acting in one of the contracting states for or on
behalf of an enterprise of the other contracting state
other than an agent of an independent status and he
has and habitually exercise ,in the first –mentioned
state a general authority to conclude contract of or on
behalf of the enterprise ,only so much limited to the
purchase of goods or merchandise for the enterprise;
 Provide your explanation and give the legal basis !

Essay 2
The Rafless University of Singapore assigns a lecturer
and a college student to participate in an academic exchange
program with an Indonesian university .The Singaporean
lecturer and student will be in Indonesia for 200 days(+/- 7
months) and during the period they will receive a monthly
allowance of Rp20.000.000,00/person paid by the government
of Singapore to maintaint their education program .they also
can provide the completed form DGT-1

Question:
What indonesia text implication in regard with the
monthly allowance derived by lecturer and student according
to the income tax law and relevant article of tax treaty?

CASE

Danke N.V is a company resident of netherland.Danke N.V has

a branch in Indonesia that has been registered in the KPP
Badan dan orang asing .Danke N.V conduct business in general
mining exploration service .this following is data of 2014:

Head office branch

Revenue 90 billion 70 billion

Cost& exspenses 72 billion 58 billion

Net income 18 billion 12 billion