Cekindo Business International is now InCorp Indonesia. Learn more.
InCorp offers a comprehensive range of solutions to ease the company registration process and help you create a viable roadmap for your business.
Get assistance from experts with a decade of experience in assisting international business owners expanding into Indonesia.
Avoid any bureaucratic complexity when closing your company by engaging with our experienced legal advisors.
What type of legal entities should you choose to register a company in Indonesia? We can assist you in choosing which is the best one to grow your business.
To help businesses survive during this unfortunate time, InCorp provides corporate recovery in Indonesia and insolvency services.
Granting an environmental permit in Indonesia needs an Environmental Impact Analysis (AMDAL) in advance.
Obtaining property & land ownership in Indonesia offers some challenges for foreigners. However, buying property in Indonesia is attainable with specific resources and documents.
Recent regulatory changes have a knock-on effect on Indonesia's Merger & Acquisition landscape. Check on how we can navigate you through your M&A in Indonesia.
InCorp provides Virtual Office services Indonesia in various locations: Jakarta, Bali, Semarang, Surabaya, and Batam.
Business process outsourcing in Indonesia is a viable option to streamline bureaucratic complexities that hurdle your business expansion objectives.
InCorp offers a complete range of accounting service Indonesia, from tax reporting to auditing.
With professional financial audit services from InCorp, you can ensure all accounting activities are accurately recorded and compliant with Indonesian regulations.
Using an Employer of Record service to set your roots in Indonesia opens the doors to new opportunities in the country.
Financial and Operational Resilience services from InCorp are developed to support businesses and help them survive during this difficult time.
Payroll services in Indonesia are a practical solution to avoid unnecessary complexities while you focus on growing your business.
Using a recruitment agency in Indonesia will help you hire the best candidates for your company, saving you time and money.
Tax consulting in Indonesia are the shortcuts to fulfill the administrative obligations with high accuracy and in a timely manner.
The Indonesian government promotes tax holidays as one of the fiscal incentives to attract major foreign direct investment in Indonesia.
Operating businesses in Indonesia, entrepreneurs must comply with the regulations accordingly, especially concerning taxes.
Immigration in Indonesia is one of the strictest and most complex processes due to its ever-changing regulations. InCorp provides a seamless experience in obtaining your stay and work permits.
Avoid any hassles by engaging with an experienced visa agent in Indonesia.
A dependent visa Indonesia is a document that allows foreigners to bring their family while settling down in the country.
Investor KITAS Indonesia is a stay permit that offers many benefits to investors that invest in the country.
Overseas Visas are required for Indonesians who are planning to stay abroad for an extended period of time.
KITAP is a permanent stay visa for foreigners who have intentions to stay in Indonesia.
Foreign retirees often find their plans stuck due to the complex visa application process. InCorp helps expedite the process.
Obtaining a social visa is daunting if you are not familiar with the country’s complex bureaucratic processes. Consult with us for a seamless Indonesian visa application experience.
Foreigners married to an Indonesian citizen are eligible for a spouse-sponsored KITAS.
Learn how to obtain an Indonesian tourist visa seamlessly and securely, directly from a trusted visa and travel agent.
Get assistance from a trusted visa agent in Indonesia to make your traveling plan to Indonesia even more convenient.
Expedite your Indonesian work permit application process by engaging with a trusted visa agent.
All imported goods must obtain permission granted by specific governing bodies prior to entering the local market.
Learn more about the cosmetic product registration services in Indonesia.
Learn more about exporting goods to Indonesia.
Learn more about the food & beverage product registration services in Indonesia
Learn how to go through halal certification in Indonesia directly from experts successfully.
Learn more about the health supplement product registration services in Indonesia.
Learn more about the household product registration services in Indonesia.
Learn more about importing goods from Indonesia
An Importer of Record in Indonesia is a legal service that enables companies to import products into Indonesia, through an import partner.
Learn more about the medical device registration services in Indonesia.
Register a trademark is necessary to avoid legal issues in the future. InCorp can help you with Trademark Registration services in Indonesia.
Compliance is one of the most challenging parts of business overseas, especially in a country packed with complex bureaucratic processes such as Indonesia.
Updating business documents to align with your company’s growth can be a hassle.
Due Diligence services are needed to assess the credibility of the company or partner you wish to work with or acquire in Indonesia
From Company Regulations to Employment Agreement Drafting, Employment law services from InCorp will help you to compliance with employment policy in Indonesia.
InCorp’s legal consultation services in Indonesia are crafted to help your business settle and fully comply with the latest regulations.
Organizations must continuously evolve and transform to remain competitive and relevant in today’s global environment ...
Companies face many opportunities and challenges as a result of a changing market and regulatory landscape ...
Adopting Environmental, Social, and Corporate Governance (ESG) practices can improve your company’s value ...
Risk Management services from InCorp Indonesia can assist companies in building confidence when making future business decisions ...
Transfer Pricing in Indonesia occurs when a company performs an internal transaction within the same business group or its subsidiaries
InCorp's transfer pricing advisory services in Indonesia are marked by the objective to support our clients' business needs.
Our transfer pricing services provide you with a hassle-free experience while still complying with the legal aspects of transfer pricing in Indonesia.
As the market-entry consulting firm in Indonesia, InCorp provides a wide range of customized solutions to ease the business incorporation process.
Both natural and legal persons are entitled to open a bank account in Indonesia. Find out how to open a bank account in Indonesia, here.
InCorp can help you find a trusted Buying Agent Indonesia for product sourcing in Indonesia. Contact us now for a free consultation.
InCorp can help foreigners to get the driving license in Indonesia, whether SIM A or SIM C. Check out the requirements and the procedure, here.
IMEI Registration in Indonesia is necessary to ensure telecommunication devices from abroad can function properly in Indonesia.
With offices in Jakarta, Bali, Semarang, SUrabaya, and Batam, InCorp is ready to assist you as a local partner and distributor in Indonesia.
InCorp can help you to select the trusted local partners to import and distribute your products in Indonesia.
Improve your business by knowing the market conditions in Indonesia through market research services in Indonesia.
InCorp can help you gain information about your competitor's product through mystery shopping.
For many companies in Semarang, especially smaller and medium businesses, the tax issues and accounting are a large source of unnecessary frustration.
While the individual tax is complex enough, the filing and reporting burden of corporate income tax is even higher. Similar to many countries with self-assessed taxation system, in addition to the state taxes requirements, there are local taxes that businesses in Indonesia need to be aware of.
State taxes include:
For local taxes, they are taxes related to property, vehicle, leisure activities, etc.
As a tenacious entrepreneur who is starting or running a business in Semarang, you are bound by the laws of taxation, and knowing how the system works is mandatory.
In this article, Cekindo will guide you in the importance of tax and accounting compliance, as well as why it is vital to outsource these tasks. We have also prepared a tax compliance calendar for 2021 that helps you to comply with taxation and accounting deadlines in Indonesia.
Tax compliance is the degree to which a taxable corporate or person complies with tax issues. So what does it take for individuals and companies to be tax compliant?
The tax issues that you need to take into account are:
All return filings and tax preparation shall be done in a required format and timely manner before the deadlines.
You might also want to check: Taxation in Indonesia: New Procedure for Tax Return
The individual income tax is applicable for different sources of income. These can be from employment, sale or transfer of property, rentals, or any types of passive incomes. Indonesians, foreign residents and foreign non-residents in Semarang will need to pay individual income tax, but the conditions vary.
It’s very crucial that you know the differences between these individual income taxes as it might affect the tax rate greatly.
For taxation, a foreign resident is defined as an alien staying in Indonesia for at least 183 days in a year.
These are locals and those who were born in Indonesia. They are obliged to pay taxes, even when they are working overseas unless they decide to leave Indonesia permanently.
Non-residents are foreigners who do not meet the requirements to become tax residents even though they have capital income in Semarang. Non-resident’s income tax is only based on the earnings generated in Indonesia.
These progressive tax rates apply to both local and foreign tax residents whose income is:
Check also: 5 Frequent Taxation Mistakes in Indonesia to Avoid
Check also: 5 Frequent Taxation Mistakes in Indonesia to Avoid
If you are a non-resident taxpayer in Semarang, you are responsible for a final withholding tax of 20% on your gross income.
The corporate income tax is paid by every incorporated business whose source of income is in Semarang and in Indonesia. Its rates vary depending on the amount of gross turn over in a year.
A lower corporate tax rate is possible only when corporate meets certain conditions. These are based on the location where businesses establish their companies and can be categorised into a resident company and non-resident company.
Benefits that resident companies can enjoy include income tax relief when businesses are conducted in particular geographic areas or high priority sectors. They are also eligible for tax reduction in net income up to 30% of the invested amount. This reduction amount is distributed at 5% during the 6-year production.
It is worth noting that small businesses would have the best benefits. If their gross turnover is less than IDR 50 billion a year, they will be able to obtain a 50% discount for maximum of 4.8 billion gross turnover.
Based on the latest changes from July 2018, the standard corporate tax rates apply as below:
Depending on the sectors, special tax rates apply as well:
BPJS is the acronym for Badan Penyelenggara Jaminan Sosial. This is a government insurance body that administers Indonesian health insurance. It seeks to improve the health situation for citizens and make healthcare possible for middle-class.
Formally employed workers pay a premium of 1% of their salary and their employer will pay another 4% – a total of 5%. Informal employees, investors and self-employed will need to pay a fixed premium monthly between IDR 25,500 and IDR 58,500.
Below are tables for different types of taxes and their deadlines for payment and reporting. It is important to understand that if these deadlines fall on national holidays or Saturday, the tax payment, report or filing can proceed on the next business day.
Some tax obligations that you need to know as an employer or an employee in Semarang:
Other than monthly tax obligations, there are annual tax obligations that you have to pay attention as well.
Tax compliance and accounting outsourcing are becoming extremely common everywhere in the world including Semarang. In order to focus on their core business activities and to be cost-effective, companies transfer of all or partial financial and accounting functions to a third-party service provider.
The benefits of tax compliance and accounting outsourcing in Semarang are countless. One of which is allowing companies to be worry-free while trying their best to comply with federal and local tax laws with tight deadlines.
Cekindo provides high-quality tax compliance and accounting services to companies in this complex and ever-changing economic environment in Semarang. Contact us today to get to know more.
Lidya provides market entry consultations for FDI in Indonesia with various perspectives in fields such as garment and textile manufacturing, furniture, farming, and engineering. In addition, Lidya has extensive experience advising expats' stay permits in Indonesia.