Tugas Pajak Internasional.docx

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