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
Verification
Verification may be conducted on “other information” which either belongs to or is obtained by the DGT, as follows: clarification results/confirmation of VAT invoices; withholding tax slips; taxation data relating to taxpayers not submitting tax returns on time, having received a written reminder and still not submitting a tax return within the period specified in… Read More
Types of Tax Assessment Letter
The name of a tax assessment letter refers to the resulting balance between the tax due and the tax credits. Accordingly, there are three types of tax assessment letters: Overpaid Tax Assessment Letter (Surat Ketetapan Pajak Lebih Bayar/SKPLB) if the tax due is less than the tax credit amount; Underpaid Tax Assessment Letter (Surat Ketetapan… Read More
Tax Audit
The tax audit of a company may cover only a particular tax or all taxes for a particular tax period (a tax month) or tax year. It may be conducted at the company’s premises, at the DGT offices, or at both.
Tax Assessment
Indonesia uses a self-assessment system under which taxpayers are trusted to calculate, pay, and report their own taxes in accordance with prevailing tax laws and regulations. However, the DGT may issue tax assessment letters to a particular taxpayer if it fnds that, based on a tax audit or on other information, the taxpayer has not… Read More
Statue of Limitation
Under the current Tax Administration Law, the DGT can issue an underpaid tax assessment letter for the years up to 2007 only within ten years after the incurrence of a tax liability, the end of a tax period (month) or the end of (part of) a tax year, but no later than 2013. For years… Read More
Products of Tax Audit
The legal products of a tax audit consist mainly of Tax Assessment Letters (Surat Ketetapan Pajak/SKP) as mentioned above and Tax Collection Letters (Surat Tagihan Pajak/STP ), which must be based on the closing conference document. A STP typically serves as a legal instrument to collect administrative tax sanctions not covered in a SKP. In… Read More
Closing Conference
At the end of a tax audit, the tax auditors will provide the taxpayer being audited with a written notification of the tax audit findings containing their proposed tax audit corrections. If there is a disagreement regarding the tax audit findings, the taxpayer must respond to the notification in writing within seven to ten working… Read More
INDONESIAN TAX 