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

Value Added Tax and Luxury Sales Tax in Batam

Batam is a Free Trade Zone (FTZ) of which most of the transactions to enter goods or services into Batam, the VAT and LST are not collected provided that the administrative requirements are fulfilled. Please refer to Section FTZ in Batam, Bintan and Karimun

Import and Self-Assessed Value Added Tax

Import VAT on goods and self-assessed VAT on the consumption or use of foreign taxable services or intangible goods should be understood in the context of the standard input-output mechanism. Because the non-resident vendor or service provider cannot charge VAT (in other words, cannot issue tax invoices) to the Indonesian buyer/importer, the Indonesian buyer/importer has… Read More

Input Value Added Tax

VAT must be accounted for to the DGT every month. Input tax for a particular tax period (month), in principle, must be claimed as a tax credit against the output VAT for the same tax period. However, the claim can still be made within three months of the end of the particular tax period if… Read More

Input and Output Mechanism for Value Added Tax

VAT liabilities are typically settled by using an input-output mechanism. A vendor of taxable goods or taxable services must typically charge VAT to the buyer. From the vendor’s perspective, it is an output tax. The buyer has to pay the VAT to the vendor. From the buyer’s perspective, it is an input tax. To the… Read More

Value Added Tax Refund

Refund applications can be made at the end of a book year. The DGT is required to make a decision on a VAT refund application, on the basis of a VAT audit, within 12 months of the receipt of a complete application. If no decision has been made within 12 months, the application is considered… Read More

Value Added Tax Collector

A deviation from the standard mechanism, however, is in force for deliveries of taxable goods and services to VAT collectors. The VAT Collector is currently either the State Treasury or PSC (Production Sharing Contract) companies. As the name implies, a VAT Collector is required to collect the VAT due from a taxable enterprise (vendor) on… Read More

Value Added Tax Facilities

Tax facilities As stated in government regulations, tax facilities are granted to certain taxpayers in the form of non-collection of VAT or VAT exemption. These facilities are covered by the following schemes: Bonded zones Bonded Zone (Kawasan Berikat/KB) status is typically granted by MoF at the request of export-oriented manufacturing companies. The aim is to… Read More

Reporting Value Added Tax

Companies and individuals designated as taxable enterprises (Pengusaha Kena Pajak/PKP) are required to report their business activities and settle the VAT liabilities on these every month. VAT is usually to be accounted for on a decentralization basis. As a result, a company carrying out business activities through a number of business units (branches) in the… Read More

Non Taxable Goods and Profit

By law, all goods and services, unless otherwise stated, constitute taxable goods or taxable services. The legal negative list sets out which goods and services are categorized as non- taxable, as follows: Non-taxable Goods mining or drilling products extracted directly from their sources, for example crude oil, natural gas, geothermal energy, sand and gravel, coal… Read More