Tag: Indonesia tax treaty

By Anthony Diosdi IntroductionIf a U.S. business or individual is claiming a benefit through a bilateral international income tax treaty, they must consider both the domestic and foreign compliance requirements of taking a treaty position. On the domestic side, the taxpayer must correctly disclose the treaty position on a U.S. tax return. On the foreign side, the taxpayer may need to satisfy requirements promulgated by the applicable foreign government. Other than filing a foreign tax return, most of the time a domestic taxpayer taking a treaty position does not have any foreign filing obligations. There are some exceptions to this general rule. One such exception is when a domestic taxpayer is using the United States Indonesia tax treaty to obtain relief from foreign taxes. When a domestic taxpayer is utilizing…