Opening a company in Indonesia comes with tax implications. All types of companies are required to pay taxes depending on income and other factors. For this notion, taxation and accounting services are very important to follow up with the taxation system. Some companies feel that tax filing, reporting, and such are burdensome and time-consuming.
There are different types of tax in Indonesia which are corporate tax, individual tax, luxury-goods sales tax, value-added tax, and other customs tax. Discussing the tax system in Indonesia can be extended but here is the general information about corporate tax.
Getting to know the corporate income tax
Corporate income tax is a tax obligation subject to a company by the Indonesian government. It is subject to both foreign and local companies of any size. The corporate income tax is 25% in general but there are some exemptions.
A company with a permanent establishment and carrying out business through a local entity is subject to the Indonesian tax regime. Meanwhile, a company without a permanent establishment that conducts business activities in the country is subject to tax liabilities.
Tax reporting
Regular and accurate accounting and tax reporting are important for a healthy business procedure. It optimizes the amount of tax that a company has to legally pay to comply with the tax regulations. Tax reporting is carried out monthly and annually. You have to prepare and submit the required tax documents to the local tax office where the company is registered.
Tax reporting is an exhausting procedure as there are loads of documents to prepare and forms to fill in. Without a proper understanding of the tax procedure, you will have to go back and forth to the local tax office to comply with the tax report.
When to pay tax?
There are two times of the year to pay Indonesian tax which are monthly and quarterly basis. Monthly tax payment includes corporate income tax, luxury goods sales tax, value-added tax, and personal income tax. The deadline for payment for corporate income tax is on the 15th and 20th for the tax reporting.
The annual tax is subject to land and building tax, and individual and corporate income tax. The deadline for tax reporting for corporate is usually at the end of the 4th month or April and the deadline for the tax payment is before filling out the tax return.
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Why it is important to hire taxation and accounting service?
Having access to the tax system is not for everyone. Lots of business owners struggle with the tax system in Indonesia for various reasons. Hiring professional tax accounting services is a brilliant solution. Tax and accounting agency has expertise in data collection and access to the latest accounting software. They know how to handle the tax requirements promptly thus you only have to focus on running the business.
Hiring taxation and accounting service in Indonesia
Proconsultofficial.com is professional tax accounting services based in Bali. We provide high-quality and consistent tax services as we have a profound understanding of the system and requirements. With full-fledged accountants, we are ready to help you with anything related to tax and accounting.
Also Read: Tax Indonesia Import: Terms and Calculation Method