Judicial Review Request to the Supreme Court

A Tax Court Decision is considered to be a final decision with full legal force. However, the parties involved in a tax dispute may file a Judicial Review Request (Peninjauan Kembali/PK) for a Tax Court Decision with the Supreme Court. This can be done only if any of the following conditions prevail: The Decision has… Read More

Objections

A taxpayer who does not agree with a tax assessment letter can submit an Objection (Keberatan) to the DGT office within three months of the date of issue of the assessment letter. The Objection must state what the taxpayer has calculated as the tax due and set out the reasons for his or her disagreement… Read More

Appeals

A taxpayer who does not accept the DGT Objection decision can file an Appeal (Banding) with the Tax Court within three months of the receipt of the DGT Objection. To the extent that the DGT Objection Decision calls for a payment of tax due, according to the Tax Court Law, at least 50% of the… Read More

Accounting for Tax

Generally, for tax purposes, a company’s books must be maintained in accordance with the prevailing accounting standards unless the tax law stipulates otherwise. By default, the books must be stated in Rupiah, composed in Indonesian, and stored in Indonesia. Subject to specific DGT approval, foreign-investment Penanaman Modal Asing/PMA) companies, PEs, subsidiaries of foreign companies, taxpayers… Read More

Monthly Tax Obligation

  Type of Tax Tax Payment Deadline Tax Return Filing Deadline Article 21/26 Income Tax The 10th of the following month The 20th of the following month Article 23/26 Income Tax The 10th of the following month The 20th of the following month   Article 25 Income Tax The 15th of the following month The… Read More

Acquisition of Land and Building

Duty on the acquisition of land and building rights A transfer of land and building rights will typically also give rise to Duty on the acquisition of land and building rights (Bea Pengalihan Hak atas Tanah dan Bangunan/BPHTB) liability for the party receiving or obtaining the rights. Qualifying land and building rights transfers include sale-purchase… Read More

Tax on Transfer of Land and Building

A transfer of land and building will cause income tax on the deemed gain on the transfer/ sale to be charged to the transferor (seller). The tax is set at 5% of the gross transfer value (tax base). However, for transfers of simple houses and simple apartments conducted by taxpayers engaged in a property development… Read More

Land and Building Tax

Land and building tax (Pajak Bumi dan Bangunan/PBB) is a type of property tax chargeable on all land and/or buildings, unless exempted. The negative list setting out land and buildings not subject to PBB includes those:  Used simply for public interest in the areas of religious and social affairs, health, education and national culture, and… Read More

Withholding Tax Rates

The withholding tax rates applicable under tax treaties are summarised below:   Notes        Portfolio        Substantial holdings Interest Royalties Tax     1.  Algeria 15% 15%    15/0%      15%    10%     2.  Australia 15% 15%    10/0% 15/10%    15%     3.  Austria 15% 10%    10/0%      10%    12%     4.  Bangladesh… Read More

Tax Treaties

Indonesia’s tax treaties provide for tax benefits in the form of withholding tax exemptions for service fees and for reduced withholding tax rates on dividends, interest, royalties, and branch profits received by residents of a country with which Indonesia has signed a tax treaty. Tax exemption on the service fees is typically granted only if… Read More