Improvement of Technical Procedure for New CoD Use
Circular of the Director General of Taxes Number SE-114/PJ/2009 has revised and added provisions concerning CoD (Certificate of Domicile) as stipulated in PER-61/PJ/2009, with the revisions as follows:
1. 1st sheet of DGT- Form I already completed and signed by the Non Resident Taxpayer (WPLN) as well as approved by the authorized official in the Tax Treaty Partner Country may be used more than once within 12 months if:
a) the WPLN makes a transaction with the same tax withholder; and
b)there is no change of name and address of the WPLN.
2. 2nd sheet of DGT-Form I is not necessarily approved by the authorized official, but the WPLN should sign a statement in the below part of the sheet, as well as include a full name and signing date;
3. The 2nd sheet of DGT-Form I is used by the WPLN to declare all income received within 1 (one) tax period. And, in case of several payments made, the WPLN should:
a. state total income for every income group in the similar 2nd sheet of DGT I -Form; and
b. prepare the detail of income received in a month for each income group in separate sheets, which should cover:
i. Serial Number;
ii. Receiving date of income;
iii. Type of Income;
iv. Income amount (in original foreign currency);
v. Description (if any).
4. Tax withholder should copy the 2nd sheet of DGTForm I, give an initial and report it at the time of Periodic Tax Return filing, by enclosing a copy of DGT-Form I (1st and 2nd sheets) as previously enclosed in the preceding periodical tax return in the same tax year.
5. Despite the “No” answer for the question point no. 6 Part V of “To be completed if the Income Recipient is Non Individual” in DGT-Form I, the WPLN still may use the Tax Treaty provisions so long as the answers to the question pint no. 7-12 are “Yes”.
6. If the income received by the WPLN is in a foreign currency other than Rupiah, the WPLN may replace IDR amount with the nominal amount of the currency used.
7. Any CoD based on the format and the common practice in the country of the WPLN, it may still be used for tax settlement which is not through tax withholding/collection mechanism in Indonesia.
