Indirect and Other Taxes

Value-Added TaxA person or body, in whatever form, which in the course of its operations, produces, imports or exports taxable goods, conducts trading activities or renders taxable services, is required to register as a Taxable Entrepreneur with the DGT. However, only a resident or a PE can obtain a VAT registration. Registration by non-residents is… Read More

Anti-avoidance Rules

The income tax law contains specific anti-avoidance provisions. Where the Indonesian DGT considers that transactions have not been conducted at arm’s length due to the existence of a “special relationship” between the parties, the consideration paid may be adjusted. The DGT’s power extends to all domestic and cross border transactions. In addition to the power… Read More

Foreign Exchange Controls

The MOF and Bank Indonesia (the central bank) are responsible for the banking system, and foreign exchange regulations. Indonesia has no foreign exchange controls and foreign investors may freely transfer funds to and from abroad, although certain reporting requirements exist with respect to certain transfers. However, there are restrictions on the transfer of Rupiah overseas.… Read More

Setting Up Business

According to the prevailing laws and regulations, several methods are available to foreign companies that wish to do business in Indonesia, including: Establishment of a Foreign Investment Company Establishment of a Foreign Company Representative Office Investment in the Oil and Gas Sector. Establishment of a Foreign Investment CompanyForeign investment companies can generally be categorized into… Read More