Indonesia, Film Financing and Television Programming | KPMG | US

Indonesia, Film Financing and Television Programming: A Taxation Guide

Indonesia, Film Financing and Television Programming


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The Indonesian government revised the tax administration, income tax, and value added tax (VAT) laws in 2007, 2008, and 2009, respectively, in an attempt to attract foreign investors, increase tax collection, and provide a more neutral, simple, and transparent tax environment. 

In addition, the Indonesian government has also entered into tax treaties with several countries. As of August 2014, Indonesia has tax treaties with 62 countries. 

Under the current Presidential Regulation No. 139/2014, the filmmaking industry is still closed to foreign investors. But for establishing a company that engages in providing technical assistance to the filmmaking industry, it is opened with a foreign ownership limitation (49% maximum of foreign ownership), such as establishing a film studio, film processing, dubbing, and editing. Film companies may hire foreign artists or employ foreign technical assistance services, etc. As there are no specific regulations on the film industry, ordinary tax provisions operate. 

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