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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 todays 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.
The rise of global tech giants and digital platforms has led to many countries needing help to tax these new forms of economic activity. As a result, the concept of a global minimum tax (GMT) has gained traction among policymakers worldwide.
Taxation of the digital economy has become a significant challenge for governments around the world due to the borderless nature of digital transactions. The digital economy has revolutionized businesses, and traditional taxation methods may only apply to some digital worlds.
Many digital companies operate in different countries without having a physical presence, making it difficult to determine where they should pay taxes. Some countries have introduced new tax laws targeting digital companies to address this issue, while others have proposed changes to existing tax laws.
The Organisation for Economic Cooperation and Development (OECD) has been working on a new framework for taxing the digital economy, which aims to ensure that companies are taxed in countries where they generate significant revenues, even if they have no physical presence there.
However, the challenge remains to balance ensuring that digital companies pay their fair share of taxes and not discouraging innovation and growth in the digital economy.
The OECD initially introduced its efforts to establish a taxation system for the digital economy in 2013.
It initially merely started as an initiative to address tax avoidance. However, it has progressed to reshape the international tax landscape. In doing so, the OECD has set up a two-pillar approach.
Pillar One aims to promote a more equitable distribution of profits and taxation rights among the largest and most profitable multinational enterprises (MNEs) by reallocating some taxing rights from their home countries to the markets where they conduct business and generate profits.
It applies regardless of whether the MNE has a physical presence in that market. In addition, the new rules will apply to MNEs with global sales exceeding EUR 20 billion and profitability exceeding 10%.
Where the 25% of profit exceeding the 10% threshold is allocated to the market jurisdictions.
Under Pillar Two, GMT contains two policy plans. First, Global anti-Base Erosion Rules (GloBE) consist of two schemes: the income inclusion rule (IIR) and the undertaxed payment rule (UTPR).
The minimum tax on IIR and UTPR is 15%. So, IIR will force MNEs to pay an effective corporate income tax rate of 15% regardless of location.
Therefore, if the investment destination country for MNEs imposes a rate below 15%, the difference will be an additional tax burden (top-up tax) imposed on the parent entity in the country of residence.
Meanwhile, the UTPR scheme means that the costs incurred by MNEs in their country of residence to constituent entities in countries with an effective tax rate below 15% are non-deductible. If the IIR has been implemented in the parent country, the UTPR will not apply.
The second is the STTR (Subject to Tax Rule) scheme, which allows the source country to tax affiliate income in the country of residence when the income is not or is taxed under the effective tax rate of 9%.
STTR will only be imposed bilaterally through a Double Taxation Avoidance Agreement (P3B) by looking at the country of origin.
The STTR scheme aims to realize the single tax principle: income must only be taxed once and eliminate double taxation and double non-taxation.
In recent decades, there has been a decline in corporate tax rates worldwide due to governments’ competition to encourage private investment and foster economic growth.
Global corporate tax rates have dropped from over 40% in the 1980s to below 25% in 2020. The OECD tax plan aims to stop this wave of policies, making it more difficult for governments to generate revenue to fund their increasing spending budgets.
The proposed minimum tax is especially significant as governments grapple with deteriorating public debt metrics worldwide.
Read more: Building a Sustainable Future: Carbon Taxation on Coal Use in Businesses
Although the media coverage of the agreement has concentrated chiefly on the taxation of the digital economy, the global minimum tax is expected to have a more significant effect on developing nations.
It is a critical development as corporate income taxes can provide governments with vital revenue to achieve their public policy goals. Moreover, for several decades, corporate income tax rates have been declining due to tax competition.
Developing countries, in particular, depend more heavily on corporate income tax revenue. With the economic impact of the ongoing COVID-19 pandemic in the past two years, these governments need to locate resources to fund improved physical and digital infrastructure.
There are several benefits to imposing a global minimum tax rate. Amongst others, this would allow for a reallocation of tax revenues.
The revenues earned from imposing a minimum tax rate would allow the government to increase public spending for the country.
Individuals could also be imposed fewer taxes due to the additional revenue. It also pushes for better international competition for small businesses, allowing them to thrive in a tough economy.
The cons, conversely, are that developing countries may lose out on the growth they have enjoyed from offering large companies low taxes. The effectiveness of this policy is also to be questioned.
Pillar Two aims to curb tax competition between governments that arises from their efforts to attract or retain actual investments by imposing a lower limit on taxes.
The primary rationale behind creating Pillar One is to boost revenue collection. The slowdown in the decrease of statutory corporate tax rates indicates a decreased demand for reductions in corporate taxes.
The Indonesian government is anticipating the impact of implementing a global minimum tax. Therefore, it seeks other countries’ input to plan the best implementation of this policy.
There could be an impact on Indonesian tax schemes such as tax holidays. However, Indonesia has a year to discuss and prepare for the implementation.
It is looking for the best way to implement initiatives that would be fair yet also provides benefit to investors.
In conclusion, many changes are expected to the current regime as Indonesia slowly transitions to implement a global minimum tax.
To embrace such changes, InCorp Indonesia provides accounting and tax consulting services that would ease the process for all businesses.
With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.