The government has issued Government Regulation 27 of 2008, which amends the rules for withholding tax on discounts (or interest) of state debentures, as previously provided for under Government Regulation 11 of 2006 (revoked).
The withholding tax rate on bond discounts remains at 20% (subject to tax treaty relief) under both the new and old regulations. However, the following changes are introduced under the new regulation:
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