Cekindo has prepared a list of Frequently Asked Questions FAQs , for everything you need to know to file an annual tax return in Indonesia. These FAQs are particularly crucial for foreigners working or starting a business in Indonesia for the first time. Many expats often equate Tax Law in Indonesia with regulations in their home country. It is actually more complicated than that when it comes to tax compliance.
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Cekindo has prepared a list of Frequently Asked Questions FAQs , for everything you need to know to file an annual tax return in Indonesia. These FAQs are particularly crucial for foreigners working or starting a business in Indonesia for the first time. Many expats often equate Tax Law in Indonesia with regulations in their home country.
It is actually more complicated than that when it comes to tax compliance. If you find tax return requirements in Indonesia confusing, and there is something you need clarification on, do get in touch with Cekindo. We are ready to help you out. An annual tax return in Indonesia is the tax form or forms used to report your personal or corporate income and file taxes with the tax authority in Indonesia — The Directorate General of Taxes DGT.
Annual tax return should be filed every year by taxpayers in Indonesia. Taxpayers include both individuals and businesses that have received income or a tax ID during the taxable year, through wages, salaries, dividends, interests, revenues, and other sources of profit. Corporate taxation issues in Indonesia are often complex because the tax regulations in Indonesia get changed a lot.
Once your company is registered at DGT through our services, we will be able to provide you with assistance for your tax liabilities and accounting. An individual who is on the payroll is liable to personal income tax. The forms used to submit for annual tax return are different. Form is for sole proprietors; Form S is for individuals with multiple incomes; and form SS is for full-time employees with annual gross income not exceeding IDR 60 million.
NPPN is a calculation norm that can be used by taxpayers for calculating their net income for one taxable year. It serves as the basis for income tax calculation. You will need a monthly withholding tax report, an annual withholding tax report, a monthly income tax report, an annual income tax report, and an investment plan.
This form is mandatory for employees while filing for their individual annual tax returns. It gets a little more demanding for a corporate tax return as it depends a lot on periodic accounting and tax reporting — which is extremely crucial to Indonesian tax compliance. Therefore, recording is hardly sufficient, and you should outsource your accounting to an external party for a proper filing of corporate tax return.
Corporate income tax is calculated based on accounting principles modified by certain tax adjustments. Deductions are allowed for business expenditures. Your company is entitled to simpler 0. The deadline for an individual tax return is on 31st March every year. For corporate, the tax return must be lodged within four months after the end of the calendar year or taxable year.
Your tax return shall be sent to the tax office KPP that you or your company registers as a taxpayer. On top of that, you will be required to pay for an administrative sanction fee of IDR , for personal income tax return, or IDR 1,, for corporate income tax return. For individuals who stay less than days in a year in Indonesia, you are not obligated to file income tax return in the country.
E-Filling is the filling for tax return electronically. E-Billing is the electronic billing for tax payments. Both are done online at DGT website. For companies, the procedure must be done at the KPP where your company is registered. With a nominee arrangement, your business is still liable for corporate taxes, and a nominee can submit a tax return on behalf of the business at the tax office.
The dividend from the tax return will be fully received by the business owner. However, a withholding tax will be deducted. A nominee arrangement for annual tax return submission can be done through services provided by Cekindo in the safest way. Cekindo offers a variety of tax and accounting services to businesses of all types and sizes. Contact us now. It is the time of the year again to file your annual tax return in Indonesia.
Do not let the time run out and avoid a painful fine for its late filing. Please leave this field empty. Join Our Free Webinar. Best time to establish your company is now. Find out why.
This is a brief overview of the requirements, calculation and payment of personal income taxes in Indonesia. Your employer is the body responsible for the calculation of any taxes that need to be withheld from your salary, monthly payment of these taxes to the tax authorities, and provision of annual numbers to the employee. The individual employee must then file an annual income tax return for the year in question. Under the old system, the income tax of an individual who only has one source of income was processed by his or her employer.
The Facts about Annual Tax Return in Indonesia
Individual / Personal Income Taxes in Indonesia