Establish a Trust in Indonesia

Updated on Wednesday 03rd October 2018

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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.
 

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.
 

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.
 

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.

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