Subject : International Taxation

MULTIPLE CHOICE : Give a reason for each answer chosen to get a point.

Ocl Co., a foreign shipping company, has established a representative office in Jakarta to serve its Indonesian customer for internasional sea transportation. Which of the following is the most appropriate tax treatment on income derives by representative office? a. Net income before income tax, from Indonesian source, shall be subject to income tax rate of 25% and, in addition, branch profit tax of 25% from net income after income tax. b. Net income before income tax, from Indonesian source, shall be subject to income tax rate of 25% c. Gross income from Indonesian source shall be subject to income tax rate of 2,64% d. Net income before income tax, from worldwide sources, shall be subject to income tax rate of 25% and, in addition, branch profit tax of 25% from net income after income tax