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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.
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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.
With the current global condition, emerging market countries are the latest investment destinations, and Indonesia is no exception. Suppose you are planning to open a business in Indonesia. In that case, you may know that the overall process can be quite a hassle due to bureaucratic and legal matters in the taxation system in Indonesia.
Once you finish those matters, the next important thing is understanding Indonesia’s taxation system. Like many countries, Indonesia operates a self-assessed taxation system divided into state and local taxes. State taxes include income tax (corporate, individual, withholding), VAT (Value Added Tax), stamp duty, and customs tax. You will find more complete obligations under Indonesian tax regulations.
Local taxes are mainly related to commercial subjects such as property, vehicle, promotional, and leisure activities. Therefore, you must understand income tax to start your business in Indonesia. Generally, Indonesia’s income tax system is applied to individuals and corporations.
To understand corporate tax in Indonesia, the location where you establish your business is vital because it will define whether you’ll be taxed as a resident or non-resident company. Therefore, a resident company is defined as a company that is incorporated and conducts business activities in Indonesia.
A foreign company with a permanent establishment (PE) in Indonesia is imposed tax obligation the same as a resident taxpayer that must follow the taxation system in Indonesia. On the other side, A non-resident is a foreign company incorporated overseas but acquiring revenue from Indonesia.
Therefore, there would be plenty of benefits as a resident company. For instance, you could receive income tax relief when you do business in high-priority sectors or specific geographic areas. It means you would be eligible for a reduction in net income up to 30% of the amount invested, prorated at 5% for six years of production.
Read more: Understanding the Tax Benefits for Investors in IKN Nusantara
There would also be a privilege for tax relief for resident taxpayers (Indonesian citizens) based on the tax treaty between Indonesia and its treaty partner.
Under Indonesian tax regulation, the corporate tax rate is generally flat at 25% (22% in 2020). However, special conditions may apply to a resident company. With that being said, if your company is listed and meets specific requirements, you will receive a 5% reduction. The best benefits apply to small businesses with a gross turnover
Besides, there are also special tax rates applied to specific business activities as listed in the following table:
Understanding revenue collection in Indonesia, you will have flexibility in your tax liability settlements. You can choose between direct payment to DGT (Director General of Tax), through third-party withholding, or a combination of both. As a non-resident company, it can only be done through withholding tax from the source of income in Indonesia, where you will be subject to 20% of various amounts.
If you are a foreign worker like foreign companies, you can be considered a resident or non-resident taxpayer. A foreign worker is categorized as a resident taxpayer once they have stayed over 183 days in 12 months.
The top marginal income tax rate for resident taxpayers is 30% (for income above IDR 500 million). These applicable tax rates are progressive based on annual income. Below are applicable income tax rates for individual taxpayers:
When talking about income taxation in Indonesia for foreigners, Non-resident taxpayers are subject to a final withholding tax of 20% on gross income. Still, they may be at a lower rate under the tax treaty. In terms of tax payments, individual income tax is collected through third-party withholding.
Read more: Indonesia to Adopt Global Minimum Tax in 2023: What it Means for Businesses
In Indonesia, payments for both corporate and individual tax liabilities are typically made to the State Treasury through a designated tax payment bank. Afterward, you must submit related tax forms to the tax office.
Note:
1) Any underpayment of tax must be settled before submitting the annual tax return.
2) Taxpayers can extend the period of submission of the annual income tax return for a maximum of two months by submitting a notification to the Directorate General of Taxation.
3) Self-assessed VAT on utilization of intangible taxable goods and/or taxable services from offshore and VAT collected by VAT Collector other than State Treasurer is due by the 15th of the following month.
Read more: How to Get Indonesia Tax Incentives Via OSS
The government’s current VAT rate is 10% VAT on the sales price in Indonesia. However, It may change because the government can amend the objective tax to a minimum of 5% and a maximum of 15%.
Moreover, if you want to import products such as branded gadgets or shoes, you must be prepared to pay much more than you would in other countries. This is because import duty rates could be up to 150% of the original sales price.
Ensuring the integrity, transparency, and compliance of your organization’s financial and operational processes is not just a best practice. it’s necessary in today’s complex business landscape. At InCorp Indonesia, we understand the importance of internal audits as a crucial tool for achieving these objectives.
Our team of experienced professionals is committed to partnering with your organization to provide tailored internal audit solutions that meet regulatory requirements and add value to your operations. By choosing InCorp Indonesia, you’re not just investing in an audit service; you’re investing in your business’s future success and sustainability.
To find out more about taxation issues in Indonesia, kindly contact us by filling out the form below.
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.