TAX FAQs

 

The content below addresses commonly raised questions regarding Indonesian tax issues.

Analysis of the impact of these issues to each taxpayer may require specific attention and we would be happy to discuss.

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INDONESIA TAX 101

The tax system in Indonesia operates on a self-assessment basis, however
a rigorous and often punitive tax audit and verification process is followed.

The main tax laws are supplemented by a complex and ever-changing raft
of implementing regulations.

TAX STRUCTURING CONSIDERATIONS

Tax planning does not need to mean devising intricate structures with fancy names. It can be as simple as ensuring that the timing of transactions is correct or that all options available are thought through. In many cases this can save considerable cost.

GENERAL TAX OBLIGATIONS

The Income Tax Law (“ITL”) requires that a taxpayer should comply with a variety of routine monthly tax obligations such as employee income tax, withholding taxes in addition to the annual tax obligation on corporate profits