Indonesia tax compliance service

Indonesian tax system is a self assesment system and withholding tax system. Tax payer, company and individual are obligated to report income tax on annual basis. The mechanism of income tax payment mostly are through withholding by income payer, therefore, company are obligated to withheld almost all of its expenditures for certain income and payroll on monthly basis. The expense paid to non resident tax payer will be withheld in accordance with tax law and tax treaty, certain requirements are apply to use tax treaty.

For the year after company earn a profit, company are required to start paying monthly income tax installment. At the end of the year company prepaid tax may consist of income tax withheld by its customers and/or accumulative of its monthly installment income tax. Indonesia Income tax law non deductible items for fiscal reporting, therefore at the end of the year, company must do fiscal adjustment to calculate fiscal taxable income.

Indonesia also has value added tax (pajak pertambahan nilai) which apply for the delivery of goods and services for certain qualified tax payer. in 2015, company which has sales over IDR 4.8 billion is obligated to registered as taxable entreprise which obligated to charge value added tax on each sales of goods and services and delivery.

Our Indonesia tax compliance service assist our clients to fulfill all aspect of compliance with tax law and regulation. Following are our services:

  • Review on transaction subject to withholding tax and value added tax
  • Prepare calculation and tax return of withholding tax (PPh 23,26,4.2, etc) and value added tax
  • Prepare payroll tax calculation, payroll tax return (PPh 21) and withhold tax certificate
  • Prepare fiscal adjustment, fiscal reconciliation, corporate income tax return
  • Provide advice on necessary document in relation to international transaction
  • Liaise with Indonesian tax authority