directorate general of taxation to revise a tax regulation for foreign company in indonesia

The Directorate General of Taxation is attempting to revise a regulation on controlled foreign companies (CFC) in an effort to prevent further tax losses for Indonesians with controlling interest in a foreign company.

The proposed amendment on Finance Ministerial Regulation No. 256/PMK.03/2008 aims to address taxpayers who did not report their dividend income from foreign investment placement, Directorate General of Taxation reform team chairman Suryo Utomo said on Monday.

"We are concerned about the dividend income report. Some taxpayers have already had investments in foreign companies for more than 15 years but never received dividends -- that is strange," Suryo said at a media briefing in Tanjung Pandan, Bangka Belitung.