Indonesian tax could be simply straight-forward on practice, otherwise it has risk to damage the business without taking careful with the change of regulation and uncertain matters on some aspects, especially for international transaction and modern business activities.
Indonesian tax system use self assesment and withholding tax mechanism. Tax payer shall report its corporate income tax on annual basis. Monthly compulsory reporting are for withholding tax for employee, external services, rent, etc. Indonesian tax regulation oblige tax payer to filing tax return and payment on every month for withholding tax obligation and value added tax. We can say all payment are subject to withheld tax obligation. Different type of transactions means different tax rate, not withheld on tax or miss period on withheld the tax will bring the company to potential loss due to tax obligation because the law has positioning the payer/employer to withheld.
It doesn’t matter when the income paid fully to the income receiver without withheld any, the tax obligation is still on the payer.
Our tax service in Indonesia are designed to assist our clients to comply with existing Indonesian tax regulation and also in some cases we assist company to do tax savings without taking a risk on tax compliance. Our tax service in Indonesia including:
- assist on business plan and structure for across border transaction to advise the efficient structure of the business
- initial registration to tax office
- take care all tax compliance (vat and withholding tax for employee, service provider, and etc) for monthly and annual reporting, including payment arrangement > find out more about our tax compliance service
- handling dispute with tax authority (tax query, audit, objection, appeal, proceed)
- assist on tax refunds on corporate income tax refunds and value added tax refunds > find out more about our tax refunds service
- case per case tax consulting and research > find out more about our tax consulting approach
With TGS firms offices around the world and our combined tax expertises, we also able to assist on tax advisory on international group structuring, cross-border transaction, and tax on transfer pricing.
[tax service in Indonesia]