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Certificate Of Residence (COR)

A “Certificate of Residence” (COR) in Indonesia is a document provided by the Directorate General of Taxes (DGT) which certifies a company as an Indonesian tax resident. This certification allows companies to benefit from tax reliefs and claim advantages under the Avoidance of Double Taxation Agreements (DTAs) Indonesia has established with other countries. These DTAs aim to prevent the double taxation of income earned in one country by a resident of another, offering benefits such as tax credits or exemptions, depending on the specific agreement’s conditions.
To qualify for a COR, companies must meet several criteria. They need to be recognized as Indonesian tax residents, primarily generate income that is remitted to Indonesia, and be the beneficial owner of said income. For holding companies, additional requirements may include demonstrable evidence of management and control being exercised within Indonesia.
The application for a COR is processed through the DGT’s online system. Companies can apply for a COR for the current year, the upcoming year, or for any of the four previous Years of Assessment. The processing time for a COR application is approximately seven working days, after which companies will receive their COR through mail. An electronic version of the COR can also be accessed through the DGT online portal.