Even if there is no law to provide for the creation of trusts in Indonesia, the local government does recognize international trusts. It is possible for both foreign and Indonesian citizens to create trusts in other jurisdictions with the purpose of leaving assets located in Indonesia to the beneficiaries.
If you are interested in creating a trust, our Indonesia company incorporation consultants can advise you.
We also provide assistance in other areas, such as for those who are interested in immigration to Indonesia. Seeking personalized assistance is advisable for all applicants and our team can answer your questions if you are applying for a residence permit for investment purposes, or for one designed for employment in the country. We can help you gather the needed documents and submit the application according to the indications provided by the local immigration authorities. Reach out to us as soon as you decide to relocate to the country.
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Legislation imposed on international trusts in Indonesia
Even if there is no law related to the creation of trusts in Indonesia, these are entities recognized from a taxation point of view. Under the Indonesian tax laws, the trustees and beneficiaries of the trust are required to pay the income tax in Indonesia.
Also, the National Bank of Indonesia has issued Regulation No. 14/2012 on the taxation of trust services. This rule applies to both individuals and companies offering trust services, as well as to banks offering such services.
Investors who need legal guidance while doing business in Indonesia can rely on the services and assistance offered by our Indonesian lawyers. We are a team of legal practitioners specializing in business and commercial law, contact and employment law, intellectual property, debt collection and dispute resolution (both court litigation and alternative dispute resolution methods).
The elements of the trust in Indonesia
Just like in any other jurisdiction, Indonesia recognizes the international trust as being a non-corporate entity created through a trust deed which must contain the following elements:
- the settlor represented by the person leaving his or her assets to one or more beneficiaries;
- the trustee represented by a person or company who will administer the trust on behalf of the settlor;
- the beneficiaries represented by the persons who will benefit from the assets held in the trust;
- the assets of the trust which can take the form of real estate property or money.
Our company formation agents in Indonesia can offer more information on the requirements related to the creation of trusts.
A separate division of our team, our immigration lawyers in Indonesia can answer questions related to particular matters.
Taxation of trusts in Indonesia
Indonesian residents acting as trustees in international trusts will be subject to taxation in Indonesia. These will be applied the personal income tax for the duration of their services for the trust.
Considering that trusts can also be created for charitable purposes, these will be taxed differently in Indonesia.
For more information on the establishment of international trusts in Indonesia, please feel free to contact our local representatives. We can also advise on how to open a company in Indonesia.
If you are interested in immigration to Indonesia and are interested in business, taxation, and asset management, we can help you.
Our immigration lawyers in Indonesia can assist you as soon as you decide to apply for a temporary residence permit.