Home Blog What are the Major Benefits of Tax Outsourcing in Indonesia? Finance | Tax Reporting What are the Major Benefits of Tax Outsourcing in Indonesia? InCorp Editorial Team 14 August 2019 4 minutes reading time Table of Contents Easy Data Collection Time Saving Latest Accounting Software Access to Expertise High Security and Safety Cekindo As Your Most Reliable Accounting and Tax Outsourcing Provider in Indonesia As a business owner in Indonesia, do you find yourself often feel anxious about your tax reporting, filling, and other burdensome tax-related activities? We feel you because many companies struggle to comply with the Indonesian financial and tax regulations unless they choose to go on with tax outsourcing in Indonesia. Indonesia has its own sets of tax laws which are applied to the entire country. You will have to submit a monthly and annual tax reporting to the tax authority in a timely manner, even if you do not have any tax liabilities or business activities recorded. Getting your tax reporting ready at the last minute is not only expensive. You may also put your company at the other side of the law. By utilising tax outsourcing services, you will get immediate access to valuable resources and dedicated experts to handle all your tax issues more effectively. This article highlights how outsourcing tax to the experts in Indonesia can benefit your business. Easy Data Collection Tax season is a busy season for all accountants and account personnel in your company. Mistakes are sometimes unavoidable if you don’t have the human capacity to do so. Therefore, you may not be able to collect and organise your data well. This is when tax outsourcing services play their role. Experts of tax outsourcing firms will make sure that all your customer data are gathered, organised and categorised properly. Time Saving Outsourcing tax services free up your worker’s schedule and allow them to focus on their main profit-generating activities. In addition, you and your employees will be able to generate more ideas and provide more important services to your customers. Latest Accounting Software In this advanced and technological era, not using the latest accounting software for all your tax and accounting activities can be a disaster for your company growth. However, accounting software can be expensive and you will need to update them from time to time. Therefore, a more convenient solution is to engage a tax outsourcing services company in Indonesia. This is because they will always have the most recent version of system to ensure that your business meets all the tax requirements and fulfill the tax obligations. Access to Expertise It can be challenging for your internal tax accountant or personnel when it comes to more complex tax issues. They may have a hard time pinpointing the accurate tax incentives and deductions due to the lack of deeper knowledge. With outsourcing, you will gain access to the finance and tax expertise to help you recognise your tax eligibility that fit the tax rules. High Security and Safety You need someone you can trust and system that is secure for all sensitive tax and financial information. This way, you do not have the risk of being hacked and have your information exposed, which can be detrimental to your organisation. By outsourcing tax and finance works to the experts, you will not have to worry about the security issue. These experts are trained to deal with cyber security with the latest technology and measures implemented in their agency. Cekindo As Your Most Reliable Accounting and Tax Outsourcing Provider in Indonesia Now that you have learned the major benefits of tax outsourcing in Indonesia, we will let you know further why Cekindo is the expert you can rely on: We provide high quality tax and accounting services consistently. By understanding your unique requirements and challenges, we offer personalised solutions for every company. Our team comprises tax specialists and experienced accounting experts. We have full-fledged package for all accounting and tax services to ensure that your needs are met with complete satisfaction. Our comprehensive solutions will save you an enormous amount of time and costs. We encourage you to utilise the extra time and costs to grow your business. Let’s discuss how Cekindo can help your business comply with the Indonesian tax laws and fulfil the tax obligations. Get in touch with us by filling in the form below. You can also visit our offices in Jakarta, Bali and Semarang. Read Full Bio Verified by Daris Salam COO Indonesia at InCorp Indonesia 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. Frequently Asked Questions What are the deadlines for the annual tax return? The deadline for an individual tax return is 31 March. A corporate tax return must be lodged within four months after the end of the calendar year or taxable year. More information can be found here: 21 Must-Know Facts about Annual Tax Return in Indonesia. Should I submit tax reports if my company has been established but has no business activities? Yes, submitting monthly and annual tax reports is mandatory even if your company does not have any business activities, thus owing zero taxes. What taxes are involved? For employment, the company is subject to: Employee income tax article 21 VAT on both the service invoice and the salary invoice 2% recovery tax on salary invoice Will having a tax ID but never submitting tax reports cause a problem for my company? Yes, you will receive an administrative penalty for delaying or not correctly and promptly filing the tax report. It is best to hire a local third party to handle your taxation matters in Indonesia, such as InCorp. Get in touch with us. 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Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Finance Investors in Certain Industries and/or Regions are Entitled to New Indonesia Tax Incentives Read more Understanding EBITDA: A Simple Guide Read more A Complete Guide to Property Tax in Indonesia Read more