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What is the interest withholding rate between Indonesia and Malaysia?
Under the Indonesia-Malaysia tax treaty, the withholding rate on interest is 10%. Certain types of interest (such as government bonds) may qualify for additional exemptions under specific treaty articles. This 10% rate compares to a median of 10% across Indonesia's 31 active treaty partners, and 10% across Malaysia's 24 active partners.
Network Comparison
Indonesia
Rank 18 of 31 active treaties (lowest rate = #1)
Lower rates with: Japan (10%), South Korea (10%), Mexico (10%)
Higher rates with: Netherlands (10%), Norway (10%), New Zealand (10%)
Malaysia
Rank 9 of 24 active treaties (lowest rate = #1)
Lower rates with: Germany (10%), France (10%), United Kingdom (10%)
Higher rates with: India (10%), Japan (10%), South Korea (10%)
Important: Treaty rates require proper claim forms (e.g., IRS Form W-8BEN for U.S. treaties, HMRC DT-Individual for U.K. treaties, CRA Form NR301 for Canadian treaties) filed before payment. Limitation on Benefits (LOB) provisions may restrict eligibility. A 0% withholding rate does not mean no tax — the residence country may still tax the income. This is not tax advice.