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Lending the machines to Indonesian Partner
Hi All,
We are a company based in India and want to lend some of our machines from India to our Indonesian Partner. And at the end of our contract with Indonesian partner we will take those machines back to our Indonesian PMA (still under registration process). So my questions are;
1. What will be the taxes occurred in this process?
2. How can we acquire back our machines by the end of the contract without having to buy them back from our partner, hence avoid paying VAT for them?
3. Are there any rules regarding lending of machinery between business partner?We appreciate the positive responses.
Thanks.
- Originaly posted by ajconsultants:
1. What will be the taxes occurred in this process?
Income derived by a resident of a Contracting State from immovable property, including income from agriculture or forestry, situated in the other Contracting State may be taxed in that other State.ÂÂ