Indonesia has agreed to a tax agreement with the United Arab Emirates (UAE) which tightens taxation rules for cross-border transactions amid increasing economic activity between the two countries.
The agreement between Indonesia and the United Arab Emirates came into effect with the issuance of Presidential Regulation (Perpress) No. 34/2021 concerning the Avoidance of Double Taxation and Prevention of Tax Evasion. President Joko Widodo signs “Djokovic” on May 4 at the Press.
Tax office spokesman Neil Madrin Noor said the Jakarta Post agreement is expected on Friday to provide greater legal commitment to individuals and companies doing business in both countries.
“The ratification of this jurisdiction is one of the efforts of the Directorate General of Taxes to increase tax revenues from economic activities, as well as prevent the imposition of double taxation and double taxation.