Article No 23

Income Tax Article 23 is the income tax withheld on income received or

accrued by the tax residence and permanent establishments which come
from the capital, the delivery of services, or carrying out activities other
than those already withheld in Article 21, which is paid or payable by
government agencies or subject to tax in the country, organizers of
events, representatives of permanent establishments or foreign company.
Withholding Article No 23:
1.
2.
3.
4.
5.
6.

Government Agencies
Subject of corporate domestix tax
Event Organizer
Permanent Establishment
Representative of foreign company
Individual Tax Residence which appointed by The Head of Tax Office

Recipients of income subject to withholding income tax Article 23:

1. Tax Residence
2. Permanent Establishment
Rates and Object article 23
1. 15% of the gross amount of:
a. dividends unless dividends to individuals subject to the final,
interest and royalties
b. prizes and awards in addition to the cut in income tax article
21
2. 2% of the gross amount of the rent and other income in connection
with the use of property except for the lease of land and / or
buildings
3. 2% of the gross amount of remuneration technical, management,
construction and consulting services.
4. 2% of the gross amount of benefits services, namely:
a. Appraisal services
b. Actuarial service
c. Accounting services, bookkeeping, financial statements and
attestation
d. Services design
e. Oil and gas drilling services in the field except by BUT
f. Supporting services in the field of oil and gas extraction
g. Mining services and supporting services in the field of mining
other than oil and gas
h. Supporting services in the field of aviation and airports;
i. Logging services
j. Waste treatment services
k. Service provider of workforce

l. Brokerage services and / or agency

m. Services in the field of trading in securities, except those
performed by KSEI and KPEI
n. Custodial / storage-/ care, except those made by KSEI;
o. Services dubbing (dubbing) and / or voiceover;
p. Movies mixing Services
q. Services with respect to computer software, including care,
maintenance and repair;
r. Installation services / installation of machinery, equipment,
electricity, telephone, water, gas, air conditioning, and / or cable
TV, in addition to those performed by the taxpayer in
construction scope and has a license and / or certification as a
construction business man
s. Investigation and security services;
t. Event organizer;
u. Packing services
v. Pest extermination services
w. Janitorial or cleaning service
x. Catering or culinary.
5. For the taxpayer that dont have NPWP will be charged 100% higher
than normal rate
Excluded from withholding Article 23:
1. Income paid or payable to the bank;
2. Rent paid or payable in connection with the lease with option
rights
3. Dividends or share of profits derived by the limited liability
company as WP in the country, cooperatives, state / enterprises,
from equity investment in a business entity incorporated and
domiciled in Indonesia with the following requirements:
a. dividends from retained earnings reserves
b. for a limited liability company, state / enterprises, ownership
of shares in entities that provide dividends at least 25%
(twenty five percent) of the total paid-up capital;
c. Part profits derived by members of a CV whose capital is not
divided into shares
d. SHU cooperative paid by the cooperative to its members
e. Income paid or payable to the financial services entity that
serves as a loan and / or financing.

Example:
1. On 14 March 2016, PT Yorkie Makmur Sejahtera paid the interest to
the Mandiri Bank for Rp 10.000.000. How much the income tax

related with article 23 that PT Yorkie Makmur Sejahtera must pay?

No Tax
2. On 16 March 2016, PT Yorkie Bersinar Terang paid Rp 130.000.000
to PWC for accounting services. How much the income tax related
with article 23 that PT Yorkie Bersinar Terang must pay?
= 2% x Rp130.000.000
= Rp. 2.600.000