What are the tax rates for corporate income tax? The rates vary based on company’s gross turnover. But the normal rate is 25%.
Do PT PMA, PT and Representative Office all have the same tax obligations? No. PT PMA and PT have to manage corporate income tax, withholding tax and VAT, plus LKPM report for PT PMA. Representative Office only manages withholding tax and LKPM report.
What are the deadlines for annual tax return? For individuals, the deadline is 31 March. For companies, the deadline is 30 April.
Will having a tax ID but never submitting tax reports cause a problem to my company? Yes, you will receive an administrative penalty for delaying or not correctly and promptly filing the tax report.
Tax Consulting in Indonesia Tax Consulting Indonesia – why it is important for your business The consequences of filing incorrect tax reports may lead to further investigation by the authorities. Tax and accounting services in Indonesia are shortcuts to fulfilling these administrative obligations with high accuracy in a timely manner. With extensive knowledge of local policies, tax consultants in Indonesia can also help you save time and money, so you do not have to keep up with the latest regulation changes yourself. Lift the burdens Tax Consulting with InCorp Indonesia InCorp takes pride in its staff of experienced accountants and tax consultants in Indonesia, who are well-trained and have local business knowledge. Operating from our branches in Jakarta, Bali, Semarang, Surabaya, and Batam, we provide tax consulting services that are tailored to your specific needs. With our assistance, you may save resources on recruiting, training, or accounting software and spend them on daily operations that can scale up your business. Consult with us Types of Tax in Indonesia PERSONAL INCOME TAXCOORPORATE INCOME TAXVALUE-ADDED TAXIMPORT TAX The Indonesian government collects personal income tax from all residents based on their income such as salaries, interests, dividends, pensions funds, and other sources. Although personal income tax in Indonesia is charged to earners, it is their employers that are responsible for calculating and paying taxes to the authorities. Employers should pay these taxes on behalf of the taxpayers every month. It should be noted that tax residents that do not have an Indonesian Taxpayer ID (NPWP) may be charged with higher rates. Indonesia’s corporate income tax is charged to any business entity earning their income in the country. Despite most companies being charged with a flat rate, some specific business lines have their own corporate income tax rates. Contact our tax consultants for more detail. Most goods and services in the Indonesian market are subject to Value-Added Tax (VAT) or locally known as Pajak Pertambahan Nilai (PPN). VAT in Indonesia is imposed on each production stage. Companies that are considered Pengusaha Kena Pajak or PKP, must report their VAT and related business activities on a monthly basis. In addition to VAT, import tax in Indonesia can also be imposed on goods and products that originate from overseas. However, there are conditions where this obligation can be exempted, subject to the type of products, regions, or a goods’ country of origin. Workflow & Timeline Schedule Why Choose InCorp Indonesia as Your Tax Outsourcing Provider? 1HIGH-QUALITY SERVICE We constantly provide high-quality service by seeking to understand your issues and needs. Our solutions are personalized for each and every business. 2EXPERIENCED TAX SPECIALISTS We are the best at what we do through years of professional experience. InCorp has a team of accounting staff and tax specialists that have the right skills to get it done will not stop until they reach the client’s satisfaction. 3COMPLETE PACKAGE We do not do things halfheartedly. To ensure client satisfaction, we offer a complete package that includes accounting services, tax reporting services, and auditing services. 4TIME & COST-SAVING Save time and minimize costs as you outsource your accounting and tax operations. Your internal talent can focus on business strategies that will help grow your business.
Do Indonesian employees and foreign employees pay the same income tax? Yes, however, the calculation is different. Indonesian employees with Tax ID will have to pay the income tax based on the progressive rate after being deducted by non-taxable income tax. Foreign employees with Tax ID will have to pay the income tax based on the calculation between work periods in one year (after 183 days)
What obligations are related to payroll? Health Insurance and Social Security Insurance (BPJS) are mandatory. The company and the employee, respectively, will bear a certain percentage. Another obligation is tax withholding. The percentage and type of taxes vary from case to case.
What kind of financial statements that InCorp manages? There are plenty of financials that InCorp manages. Among them are Trial Balance, Balance Sheet, and Profit & Loss Statement.
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 zero taxes.