Yes, Indonesian citizens, organizations, and residents will be charged tax (PPh 23) as follows:
- 15% of earnings if you have a Tax ID number or “NPWP”;
- 30% of earnings if you do not have an ‘NPWP’.
Foreign lenders will be charged 20% of earnings. Most countries have a double taxation treaty with Indonesia, therefore you can present the Mekar Tax receipt as proof of payment.
Mekar will provide you with monthly and annual tax receipts (XLS) and proof of tax payment, which can be found in the dashboard, where you can download them. Mekar’s Lending Partner will pay the income tax due, and provide the receipts from the tax office. Mekar shares these with you.
