AGENCY FOR PERMANENT BODY AS A FOREIGN TAX SUBJECT

A permanent establishment implies the existence of a place of business (place of business) is the facility that can be land and buildings as well as machinery and equipment. The place of business is permanent and usedto run the business or activities of entities not established or domiciled in Indonesia.





Definition of permanent establishment also includes entities as agents whose position is not free to act for and on behalf of entities not resident or domiciled in Indonesia. Entity not established and domiciled in Indonesia can not be deemed to have a permanent establishment in Indonesia if the entity doing business or conducting activities in Indonesia using agents, brokers or middlemen have accrued, provided that the agent or intermediary is in fact acting fully within order to run his own company.

The insurance company incorporated and domiciled outside Indonesia deemed to have a permanent establishment in Indonesia when the insurance company receives the payment of insurance premiums in Indonesia or risk in Indonesia through employees, representatives or agents in Indonesia. Risk in Indonesia does not mean that the event causing the risk occurs in Indonesia, to note is that the insured person resides, is or is domiciled in Indonesia.