Daris Salam

Frequently Asked Questions

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.

Is it required to hire Indonesian staff in the PMA company?

In Indonesia, the necessity of hiring Indonesian employees by foreign companies typically arises from commercial requirements, regulatory mandates in specific sectors like construction or shipping, or as part of employing foreigners to fulfill knowledge transfer obligations.

Is there any foreign exchange control or limitation in Indonesia?

Foreign currency transfers to and from Indonesia are not subject to exchange controls, allowing investors to freely move funds. However, these transactions must be reported to Bank Indonesia. Moreover, there are reporting obligations concerning offshore assets and liabilities to ensure transparency in financial activities.

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.