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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.
Taxation plays a pivotal role in investment considerations, regardless of one’s location. In Indonesia, investment allure hinges significantly on personal and corporate tax rates, making them vital factors for prospective investors seeking entry into this thriving market. In this article, we help you understand more about Indonesia’s company tax rate.
In Indonesia, corporate income tax, or company tax, encompasses levies imposed on entities at the organizational level within the jurisdiction. These taxes span income and various fiscal obligations.
Globally, most countries enforce income taxes at the entity level, typically targeting companies and corporations. Additionally, owners or members of these entities often face taxes on dividends and distributions.
Investors frequently encounter corporate taxes when starting a company registration in a foreign country. Most nations mandate that corporations doing business within their borders pay taxes on their income or, in specific cases, on certain business activities conducted in the country.
Indonesia aligns with this global tax framework, imposing corporate taxes on businesses operating within its borders and personal income taxes for employees.
Indonesia’s corporate tax rate is set to remain at 22% in 2024. However, public companies meeting specific requirements, including a minimum 40% listing on the Indonesia Stock Exchange (IDX) and other criteria, can enjoy a 5% tax reduction from the standard rate.
Smaller enterprises with an annual turnover not exceeding IDR 50 billion are entitled to a 50% reduction from the standard tax rate based on their taxable income proportion, resulting in a gross annual turnover of IDR 4.8 billion.
For companies with gross turnovers below IDR 4.8 billion, this reduction results in a final income tax rate of 0.5% of turnover. Companies with revenues ranging from IDR 4.8 billion to IDR 50 billion are subject to a 12.5% tax rate on profits. Conversely, those with incomes exceeding IDR 50 billion face a 22% tax rate.
Certain types of income companies earn are subject to a final income tax (Article PPh 4 (2)) withheld by third parties. This tax is imposed on residents with various types of revenue, including land and building rentals, construction fees, and interest income.
Read more: Guide on Filing Corporate Annual Tax Return (SPT) in Indonesia
Read more: Guide on Filing Corporate Annual Tax Return (SPT) in Indonesia
Distinct industries in Indonesia fall under specific tax rate structures, including:
Those establishing a Representative Office in Indonesia are prohibited from generating any revenue. The Representative Office’s income must be directly transferred to the corporate headquarters overseas.
This process may involve repatriation for Limited Liability Companies (PT and PT PMA) when transferring dividends to overseas shareholders, subject to tax under Article PPh 26, with a general rate of 20% on dividends or as stipulated in applicable Tax Treaties between the involved countries.
Specific industries in Indonesia benefit from tax incentives, particularly tax holidays. Eligibility for a tax holiday hinges on the amount of new capital investment:
Companies investing in less developed areas of national priority can also avail themselves of tax allowances, including:
Other available tax incentives for Indonesian companies encompass:
In Indonesia, companies can deduct various expenses when computing their taxable income for corporate tax purposes. These deductible expenses are pivotal in reducing the company’s taxable income, thereby diminishing the corporate income tax liability.
Here are some common deductible expenses that companies can typically claim in Indonesia:
These encompass expenses directly associated with daily business operations, such as rent, utilities, salaries, office supplies, travel, entertainment, and communication costs.
Interest payments on loans and other forms of business debt are typically deductible. However, certain restrictions or limitations may apply based on thin capitalization rules or other regulations.
Companies can deduct expenses related to the wear and tear of tangible assets (e.g., machinery and buildings) and the amortization of intangible assets (e.g., patents) over their useful life.
Some uncollectible debts may be deductible, subject to specific criteria.
Payments for using intellectual property rights, such as royalties and licensing fees, are generally deductible.
Costs associated with R&D activities aimed at product or process improvement may be deductible.
Expenses related to employee benefits, such as pension fund contributions, are typically deductible.
Fees paid to legal and accounting professionals for business-related services are generally deductible.
Certain taxes and duties paid during business operations may be deductible.
Premiums for business insurance, such as liability or property insurance, can be deducted.
Costs related to advertising and marketing campaigns are typically deductible.
It is essential to note that Indonesia’s tax laws and regulations may evolve, and the deductibility of expenses may be subject to specific rules and limitations.
Therefore, companies should collaborate with tax professionals or advisors well-versed in Indonesian tax laws to ensure compliance and optimize tax deductions. Furthermore, meticulous record-keeping is crucial to substantiate claims for deductions during tax audits or assessments.
While numerous expenses are deductible for corporate tax purposes in Indonesia, certain costs are generally not eligible for deduction. These non-deductible expenses encompass:
Understanding these distinctions is crucial, as specific rules and regulations can influence the deductibility of expenses. Therefore, companies should collaborate with tax professionals or advisors well-versed in Indonesian tax laws to navigate these nuances and ensure compliance.
Indonesia also levies income tax on all employees, including those in the private sector, state-owned companies, and government roles. The tax rates applicable to their income are as follows:
All tax residents are required to register for the National Taxpayer Identity Card (NPWP). Failure to obtain an NPWP may result in an additional 20% charge on annual tax reports.
Read more: Corporate Income Tax and Value Added Tax
Read more: Corporate Income Tax and Value Added Tax
InCorp Indonesia, a distinguished market entry and business consulting firm, offers comprehensive support for tax reporting and payroll outsourcing to foreign companies and entities operating within Indonesia’s dynamic market.
Do not hesitate to contact us for expert guidance on taxation matters in Indonesia. To access a FREE consultation, please get in touch with us using 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.