Are Scholarships Taxable or Not?

Scholarships that meet certain requirements are exempt from income tax. Certain requirements include scholarships received:

1. By scholarship recipients who are Indonesian citizens; and
2. To participate in formal and non-formal education conducted in and/or abroad.

While scholarships are classified as taxable objects, if they:

1. The scholarship provider has a business relationship, ownership relationship, or control relationship with the scholarship recipient. For example, company A provides a scholarship to Fina, while Fina herself is an employee of company A.
2. The owner, commissioner, director, or administrator of the scholarship institution has a family relationship, either by blood or in-laws, either directly or indirectly with the scholarship recipient. For example, Fino received a scholarship from company B, but in fact Fino is the child of the owner of company B.
3. The individual who provides the scholarship has a business relationship with the scholarship recipient. For example, an official A provides scholarships to Fina and Fino. It turns out that Fina and Fino and official A are business partners.