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
Article 4 (2)
Article 4 (2) – final income tax (PPh Final) Resident companies, Permanent Establishments (PEs), representatives of foreign companies, organizations, and appointed individuals are required to withhold final tax from the following gross payments to resident taxpayers and PEs: 1. Rental of land and/or buildings 10% 2. Proceeds from transfers of land and building rights 5%… 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
The introduction of Indonesian Value Added Tax
General VAT is typically due on events involving the transfer of taxable goods or the provision of taxable services in the Indonesian Customs Area. The taxable events are: Deliveries of taxable goods in the Customs Area by an enterprise; Import of taxable goods; Deliveries of taxable services in the Customs Area by an enterprise; Use… Read More
INDONESIAN TAX 