NOTES TO THE FINANCIAL STATEMENTS
(CONT’D)
31 DECEMBER 2015
10.
INCOME TAX (CONT’D)
10B.
Deferred tax (income)/expense recognised in statements of total return includes:
Group
2015
2014
$’000
$’000
Deferred tax (income)/expense relating to the
changes in fair value of investment properties
(11,883)
1,820
10C.
Deferred tax balance in the statements of financial position:
Group
2015
2014
$’000
$’000
Deferred tax liabilities recognised in statements
of total return:
Deferred tax relating to the changes in fair value
of investment properties
39,224
51,107
It is impracticable to estimate the amount expected to be settled or used within one year.
Temporary differences arising in connection with interests in subsidiaries are insignificant.
Taxation of Income from Indonesia Properties
Corporate Income Tax in Indonesia
Article 3 of Indonesian Government Regulation No. 5 /2002 on the payment of income tax on income from the lease
of land and/or building stipulates that income tax on income received or acquired by individuals or entities from
the leasing of land and/or buildings consisting of land, houses, multi-storey houses, apartments, condominiums,
office buildings, office-cum-living space, shops, shop cumhouse, warehouse, and industrial space which is received
or earned from a tenant acting or appointed as a tax withholder, is to be withheld by the tenant. The tax rate is
10% of the gross value of the land and/or building rental and is final in nature.
Withholding Tax in Indonesia
Under the income tax treaty between Singapore and Indonesia, the Indonesia withholding tax is capped at 10%
in respect of:
(a)
Dividends paid by a company resident in Indonesia to a company resident in Singapore which owns
directly at least 25% of the capital of the company paying the dividends; and
(b)
Interest paid to a resident of Singapore.
Indonesia withholding tax is at 15% in respect of dividends paid by a company resident in Indonesia to a company
resident in Singapore who owns directly less than 25% of the capital of the company paying the dividends.
LIPPO MALLS INDONESIA RETAIL TRUST
98
