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Q&A

What was one of the likely causes of Indonesia’s inability to meet its growth ...

What was one of the likely causes of Indonesia’s inability to meet its growth ...

During the 1980s and 90s, Indonesia’s manufacturing sector saw significant growth.  However, in the early 2000s, the government began to focus on commodity exports to meet growing Chinese demand for resources.  In doing so, the nation...

Q&A

What is a potential downside of investing in Indonesian Special Economic Zones (...

What is a potential downside of investing in Indonesian Special Economic Zones (...

Indonesia’s Special Economic Zones (SEZs) offer investors preferential regulatory infrastructure and tax policies.  Indonesia currently has nine SEZs in place, and President Joko Widodo’s government plans for a total of twenty-five b...

Q&A

In 2016, what percentage of Indonesia’s GDP came from the nation’s manufactu...

In 2016, what percentage of Indonesia’s GDP came from the nation’s manufactu...

In 2016, Indonesia’s manufacturing sector was valued at USD112.8 billion, and made up 23.7% of the nation’s total GDP.  Indonesia’s manufacturing sector has seen a slowdown due to a decrease in Chinese demand for commodities.&n...

Q&A

What are the benefits of establishing a Limited Liability Company with Foreign D...

What are the benefits of establishing a Limited Liability Company with Foreign D...

Companies looking to establish themselves in an Indonesian market have four options available to them.  They can establish a Representative Office (KPPA), or a Representative Office for Trading (K3PA), which allow for foreign ownership, but do n...

Q&A

As of 2016, what Corporate Income Tax incentives did Jokowi’s government offer...

As of 2016, what Corporate Income Tax incentives did Jokowi’s government offer...

For investors willing to invest IDR 1 trillion (about 76.75 million USD) into an Indonesian SEZ, Jokowi’s government offers 20-100% tax reductions for up to 25 years.  20-100% tax reductions are also available for those looking to invest I...

Q&A

How will Indonesia’s demographics affect its potential for economic growth in ...

How will Indonesia’s demographics affect its potential for economic growth in ...

Indonesia is home to more than 255 million people, making it the fourth most populous nation on earth.  Of these 255 million, half are under the age of 30.  This generation of Indonesians is the largest that the nation has ever seen, and is...

Q&A

Which governmental bodies and general restrictions should be noted with regard t...

Which governmental bodies and general restrictions should be noted with regard t...

The Ministry of Finance (MOF) and State Bank of Vietnam (SBV) are two main governmental bodies investors have to take note of. MOF has the power to adjust tax rates  and regulate remittances, whereas SBV is in charge of regulating banking and fo...

Q&A

Prior to remitting profits, investors may be faced with withholding tax which is...

Prior to remitting profits, investors may be faced with withholding tax which is...

Currently remittances are segmented into the following four categories: dividends, interest, royalties, and technical service fees. For dividends, no tax is currently imposed unless paid to individuals, whereas interest paid to a non-resident is subj...

Q&A

What are the obligations companies have to fulfill before being able to remit pr...

What are the obligations companies have to fulfill before being able to remit pr...

Companies have to make the following taxes before being able to remit profits: CIT which now has been reduced to 20% for both local and foreign enterprises, except for some special industries; VAT which is imposed at three different rates namely 0%, ...

Q&A

What are the main restrictions when selecting and operating a foreign currency a...

What are the main restrictions when selecting and operating a foreign currency a...

Institutional selection is one of the pressing issues here since investors are limited to the selection of a single account with a bank that has been licensed by the SBV. Only banks with this license can operate a foreign currency account along with ...

Q&A

Why is it best to set up a foreign currency bank account after investors enter V...

Why is it best to set up a foreign currency bank account after investors enter V...

A foreign currency bank account has to be utilized for all foreign currency transactions carried out within the country. Further, there are a list of activities that require a foreign currency account which include receipt of charter capital up until...

Q&A

What are some of the restrictions placed on remitting profits in Vietnam?

What are some of the restrictions placed on remitting profits in Vietnam?

There are a number of restrictions enforced upon remitting profits. For example, under Vietnamese law, profits may only be remitted once per year. Furthermore, dividends may not be carried out during a year in which a company has not turned a profit....

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