INDONESIA Law and Practice Contributed by: Yogi Sudrajat Marsono, Heru Pamungkas, Agnes Maria Wardhana and Andin Aditya Rahman, Assegaf Hamzah & Partners
It is important to note that income derived from such rental activities would be categorised as dividends rather than traditional rental income, and therefore dividend tax rates will apply. 8.5 Tax Benefits A company can derive advantages from owning property by leveraging depreciation expenses to lower its taxable income. Depreciation can be calculated annually on properties, allowing com - panies to deduct this expense from their gross revenue, thereby potentially decreasing their tax liability. The depreciation period for permanent buildings is 20 years, with an annual depreciation rate of 5%. Meanwhile, non-permanent build - ings have a depreciation period of ten years, with an annual depreciation rate of 10%.
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