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.
When a company performs an internal transaction within the same business group or when a company transacts with its subsidiary, another company or an individual, a transfer price occurs to determine costs and fulfill accounting and tax purposes. When being compared to a market price, a transfer price usually does not differ much. Transfer pricing, then, refers to prices of transactions between associated parties or organisations that may be different from transactions between independent parties or organisations. This article specifically discusses the Arm’s Length Principle, in relation to transfer pricing, in Indonesia.
In Indonesia, every affiliated local or international transaction is required to comply with the transfer pricing requirements by providing documentation known as TP Doc that comes in three tiers, namely Master File and Local File (must be made available within four months following end of fiscal year) as well as Country-by-Country Report/CbCR (must be made available within 12 months after tax year end).
As the standard of transfer pricing method, the Arm’s Length Principle (ALP) must be implemented. The Arm’s Length Principle cannot be separated from Arm’s Length Price, which, in general, is the price to be charged to parties that perform transactions, but these parties are not related to one another.
For affiliated business transactions in Indonesia, it is mandatory to apply the ALP. The following is the ALP guideline that is designed specifically for Indonesian Tax Payers, in accordance with General Tax Directory (DJP) Regulation No. Per-32/PJ/2011.
In Indonesia, the ALP is the governing rule of conditions of a transaction with affiliated party that should be equal or comparable with the conditions of a benchmarked transaction with an independent party. Then, the price or profit of a transaction with an affiliated party should be the same as or within the Arm’s Length Range (ALR) of price or profit of a transaction with an independent party.
The ALR is the price or profit range that comes from testing comparative data during the first and third quarters of a fiscal year by using the same method of transfer pricing.
The following transactions and parties are subject to the ALP:
1. All transactions with affiliated non-resident tax payers
2. Transactions with affiliated resident tax payers that fulfill at least one of following conditions:
To implement the ALP, it is important to define an independent transaction benchmark , so that the ALP is valid. The following are the general guideline to define a reliable benchmark:
1. There should be no material different conditions of two compared prices. Or if any, then it should be adjustable to a particular price to eliminate the material difference.
2. If internal and external benchmark data that are available have the same comparability level, then the internal data are preferred to be used as the benchmark.
3. The internal benchmark data from incidental (ad hoc) transactions are only usable as a benchmark for incidental (ad hoc) affiliated transactions.
The affiliated transactions should consider the implementation of the ALP if the comparability is correct and meet the requirements in the regulation. A comparability analysis between affiliated transactions and independent transactions should consist of the following:
Nevertheless, tax payers are allowed to propose an Advance Pricing Agreement (APA) to the tax office in order to avoid any possible issues in the future that come from the affiliated transactions. An APA is an agreement between tax payers and the Indonesian Tax Office or between the Indonesian Tax Office and the tax authority of another country to determine the transfer pricing in advance before the transaction takes place.
Comply with the statutory requirements in Indonesia and international practice of transfer pricing to seamlessly run a business in Indonesia. Whether you need assistance with transfer pricing compliance or simply require a transfer pricing advisory, our team of transfer pricing experts is at your disposal.
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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.