New agreement between Indonesia and The Netherlands

A memorandum was signed between the Netherlands and Indonesia pertaining to matters of excise duty and various customs issues. The customs authorities of these two countries will improve and deepen their cooperation, as per the agreement, which will allow for better trade relationships. This treaty concerns foreign investors in both countries as well as import-export companies.

The memorandum of understanding customs matters

The Indonesian and Dutch governments concluded this agreement as a way for both states better the cooperation between them regrading customs matters. According to the new memorandum, the two countries will be sharing relevant information about trading companies, thus enabling them to cooperate better. The aim of the information exchange is to combat tax evasion as well as drug smuggling.

Netherlands-Indonesia trade relations

The Netherlands and Indonesia have secured bilateral tax agreements which have led to excellent trade relations. The Netherlands imports organic chemical products, furniture or shoes from Indonesia and exports dairy products, machinery or vehicle parts. These two countries also encourage mutual foreign direct investments between the two states.

Apart from this latest memorandum, the two countries also have a double tax treaty in place. This agreement states that the withholding rate on dividends is reduced to 5% for those companies receiving the dividends that own 25% of the company making the payment or 10% when the dividend payment is received by pension funds controlled according to the provisions of the treaty.

Our company registration experts can help you understand the tax treaties between the two countries should anything be unclear. You can contact us for any information regarding the Netherlands-Indonesian taxation legislation.