|COVID-19 PANDEMIC: INDONESIAN GOVT. HAS OFFERED TAX INCENTIVES
To provide support for businesses and individuals during the COVID-19 crisis in Indonesia, the Minister of Finance has issued PMK 44/2020 regarding business sectors that are eligible for tax incentives.
There are 4 types of tax incentive applications that are valid from April to September 2020:
1. Zero payroll tax (tax art. 21)
2. 30% discount of Company Income Tax Installment (tax art. 25) or 0% Final Income Tax for SME (Tax PP 23)
3. Zero import tax (Art. 22) – Company is required to have a KITE License (Import for Tax Purpose)
4. Expedite VAT refund – In addition to having a KITE, this is applicable as well for companies stating overpayment on their VAT Return
For clients who are eligible, our tax consultants can provide consultation and tax incentive application services:
1. Tax Incentive Notification Letter (one time submission)
2. Payroll modification for zero payroll tax from April to September 2020
3. Realisation report from April to September 2020
Accounting and tax reporting services in Indonesia are geared mainly to help companies comply with the financial reporting requirements.
Indonesia has its finance and tax regulations, and all local companies in the archipelago are required to abide by them. For instance, your company should submit a monthly tax statement to the tax office even if no business activities or tax liabilities have been recorded.
Basic business processes, especially those that involve income tax in Indonesia and corporate tax in Indonesia, are critical in nature, requiring your company to have them processed timely and with high accuracy.
To help your company comply with the accounting and tax reporting rules of Indonesia, Cekindo provides a full selection of services as an accounting agency. By outsourcing your business accounting and tax obligations, you would reduce your operating costs and administrative burden while ultimately increase your business flexibility and growth.
Cekindo takes pride in its staff of experienced accountants and tax consultants in Indonesia, particularly in Jakarta, Semarang and Bali, who are well trained and have local business knowledge. This ensures tailored solutions for your business based on your requirements in accordance with the government’s standard operating procedures.
Cekindo’s services, which are centrally managed, link their competencies in finance, accounting, and tax to support the full range of compliance needs.
As a member of 3E Accounting network and being its representative for Indonesia, Cekindo provides accounting and tax advisory services of the highest quality and accuracy.
Furthermore, our three branches are spread on two islands across Indonesia, so our clients can benefit from consultation and accounting services in Bali and Java, namely Jakarta and Semarang.
1. HIGH QUALITY SERVICE
We constantly provide high quality service by seeking to understand your issues and needs. Our solutions are personalised for each and every business.
2. EXPERIENCED ACCOUNTING STAFF AND TAX SPECIALISTS
We are the best at what we do through years of professional experience. Cekindo has a team of accounting staff and tax specialists that have the right skills to get it done will not stop until reach client is satisfied.
3. COMPLETE 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.
4. TIME & COSTS SAVING
Save time and minise cost as you outsource your accounting and tax. Your talents can focus on business strategies that will help grow your business.
Fill in the form below and get in touch with our accountants and tax consultants. Let’s discuss how we can successfully work together to realise your business goals and do not fail accounting regulations.
Also, we will be happy to meet you in our offices located in Jakarta, Semarang, and Bali.
Should I submit tax reports if my company has been established but currently does not have any business activities?
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.
What are the obligations related to payroll?
Health Insurance and Social Security Insurance (BPJS) are mandatory. Certain percentage will be borne by the company and the employee respectively. Another obligation is tax withholding. The percentage and type of taxes vary from case to case.
What are the deadlines for annual tax return?
For individuals, the deadline is 31 March. For companies, the deadline is 30 April.
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 tax rates for corporate income tax?
The rates vary based on company’s gross turnover. But the normal rate is 25%.
Do Indonesian employees and foreign employees pay the same income tax?
Yes. But, 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 period in one year (after 183 days).
What kind of financial statements that Cekindo manages?
Plenty, among them are Trial Balance, Balance Sheet and Profit & Loss Statement.