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.
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.