Taxable business profits are calculated on the basis of normal accounting principles as modified by certaintax adjustments. Generally, a deduction is allowed forall expenditure incurred to obtain, collect and maintain taxable business profits. A timing difference may arise if an expenditure recorded as an expense for accounting cannot be immediately claimed as a deduction for… Read More
Tax payments
Resident taxpayers and Indonesian PEs of foreign companies have to settle their tax liabilities either by direct payments, third party withholdings, or a combination of both. Foreign companies without a PE in Indonesia have to settle their tax liabilities for their Indonesian-sourced income through withholding of the tax by the Indonesian party paying the income.… Read More
Tax residence
A company is treated as a resident of Indonesia fortax purposes by virtue of having its incorporation or its domicile is in Indonesia. A foreign company carrying out business activities through a permanent establishment (PE) in Indonesia will generally have to assume the same tax obligations as a resident taxpayer.
Corporate Income Tax Rates
Tax rates Generally, a flat rate of 25% applies. Public companies that satisfy a minimum listing requirement of 40% and other conditions are entitled to a tax cut of 5% off the standard rate, giving them an effective tax rate of 20% (refer to page 69). Small enterprises, i.e. corporate taxpayers with an annual turnover… Read More
SEMINAR TRANSFER PRICING -20 FEBRUARY 2020
SEMINAR TRANSFER PRICING DOCUMENTATION OLEH : PRASETYONO HENDRIARTO – Prasetyono Hendriarto adalah Senior Partner IC Advisors. Prasetyono Hendriarto memulai karirnya di Direktorat Jenderal Pajak (DJP) pada sengketa pajak (audit, keberatan, dan banding). Prasetyono Hendriarto terpilih sebagai salah satu World’s Leading Transfer Pricing Advisers 2019 oleh TP Minds Asia. Prasetyono Hendriarto pernah menjabat sebagai Head of Transfer Pricing… Read More
INDONESIAN TAX 