No, these KITAS types are for business or employment purposes only. If you plan to study in Indonesia, you would need to apply for a Student KITAS, which is specifically designed for education.
What taxes must businesses pay monthly in Indonesia?
Businesses in Indonesia typically pay withholding taxes (PPh 21, 23, 26), VAT (PPN), and final taxes (PPh 4(2)) on a monthly basis. These taxes are due by the 10th or 15th of the following month, depending on the tax type, with filings due by the 20th.
What is the deadline for filing my company’s annual corporate tax return?
The annual corporate tax return (SPT Tahunan PPh Badan) is due by the 30th of the 4th month after your fiscal year ends. For most companies, this means April 30th.
What happens if I miss a tax payment deadline?
Late tax payments are subject to interest penalties under Indonesian tax law. We help clients ensure timely payments to avoid such penalties.
Do individuals need to file an annual tax return?
Yes, individuals earning income in Indonesia must file their personal income tax return (SPT Tahunan PPh Orang Pribadi) by March 31st each year.
How can I ensure my company is VAT-compliant?
To remain VAT-compliant, businesses must calculate and pay VAT on all taxable goods and services monthly, filing the necessary returns by the 20th of the following month. We can assist with accurate calculations and on-time filing.
What are the penalties for incorrect or late tax filings?
The penalties for incorrect or late tax filings can include fines, interest penalties, and in some cases, further investigations by the tax authority. We prioritize accuracy and timeliness to help you avoid these penalties.
What is the role of withholding tax (PPh 21, 23, 26) in my business?
Withholding tax obligations apply to salaries, services, dividends, royalties, and payments to non-residents. It is your responsibility to withhold these taxes and report them monthly to the tax authorities.
How do I calculate my corporate income tax?
Corporate income tax is calculated by reconciling your financial statements according to tax regulations, determining your taxable income, and applying the corporate tax rate. We provide guidance on accurate calculations and filing.
Is there any audit risk if I follow the tax compliance procedures?
While following the tax compliance procedures lowers your audit risk, the Indonesian tax authority may still select your company for an audit. We support you during the audit process to ensure smooth handling.
What records do I need to maintain for tax compliance?
You need to maintain accurate records of all financial transactions, including sales, purchases, payroll, and expenses. Proper documentation is essential for monthly and annual tax filings and audits.
Are there any tax incentives for businesses in Indonesia?
Yes, certain industries and regions qualify for tax incentives, such as reduced corporate income tax rates or tax holidays. We can help identify any applicable incentives for your business.
What should I do if I discover an error in my tax return after submission?
If you find an error in your tax return, you can submit an amendment to correct it. We assist in preparing amended returns and communicating with the tax authorities to minimize any penalties.
What should I do if I cannot meet the tax payment deadline?
If you anticipate a delay in tax payment, it’s crucial to notify the tax authority and explore possible payment extensions. However, penalties may still apply. We advise on how to manage such situations effectively.
How can I stay updated on changes in tax regulations?
Tax regulations in Indonesia can change frequently. We keep our clients informed of any changes that may affect their tax obligations and ensure compliance with the latest rules.
Can foreign companies operating in Indonesia also file tax returns?
Yes, foreign companies with a Permanent Establishment (PE) in Indonesia are subject to local tax regulations and must file monthly and annual tax returns. We specialize in helping foreign companies comply with Indonesian tax laws.
What is Suspension of Debt Payment (PKPU)?
A legal process in Indonesia that allows debtors to propose a restructuring plan to its creditors to avoid bankruptcy.
What is Bankruptcy?
It is a legal status declared by the commercial court for a debtor who is unable to pay its debt when they fall due and whose financial condition is deemed irreparable. This process involves liquidating the debtor’s asset to pay off creditors.
What is the prevailing law of Suspension of Debt Payment (PKPU) and Indonesian Bankruptcy matters?
Indonesian Law Number 37 of 2004, and related regulations.
What are the criteria of Debtor to be declared under Suspension of Debt Payment (PKPU) or Bankruptcy status?
Debtor shall have at least 2 (two) creditors and have failed to pay at least one debt that is due and payable, and the debt criteria can be proven simply.
Who may file a Suspension of Debt Payment (PKPU and Bankruptcy petition?
Both debtor and creditor are eligible to file the petition to Indonesian Commercial Court.
What is the role of Administrator and Receiver?
The Administrator is appointed by commercial court to carry its duty and supervised by a Supervisory Judge during Suspension of Debt Payment (PKPU) process. While the Receiver runs its duty and supervised by a Supervisory Judge during Bankruptcy process.
What happens during PKPU process?
Creditors cannot take enforcement actions against debtor; an Administrator is appointed to oversee the process and a restructuring plan is proposed and voted on by creditors.
Can I settle debts for less than what I owe through PKPU?
Yes, PKPU allows for negotiation with creditors, and it is possible to settle debts for a reduced amount if an agreement is reached.
What if a PKPU plan is rejected by creditors?
The court may declare debtor bankrupts, and debtor’s assets could be liquidated to pay off debts.
How long does the PKPU process take?
The Temporary PKPU period is 45 days, which can be extended to a maximum of 270 days (Permanent PKPU) upon approval if a feasible restructuring plan is in progress. This provides ample time to negotiate and implement a debt repayment strategy.
What happens if Restructuring Plan (Proposal) during PKPU process is approved?
The Restructuring Plan (Proposal) becomes legally binding, and creditors must adhere to the agreed-upon terms. The Debtor will follow the new repayment schedule as proposed in Restructuring Plan, which provides relief and helps stabilize its financial situation.
What happens to my business during bankruptcy?
A Receiver will manage and liquidate your business assets to pay off creditors.
Can I appeal a bankruptcy decision?
Yes, within a certain timeframe and if a bankruptcy status comes directly from a petition of bankruptcy.
How can I prevent my business from going bankrupt?
Timely debt restructuring, effective financial management, and utilizing legal protections like PKPU can help prevent bankruptcy. Engaging our legal services early can provide the guidance needed to avoid financial insolvency.
How does bankruptcy impact my personal assets as a business owner?
For incorporated entities, bankruptcy generally affects the company’s assets only. However, for sole proprietorships or personal guarantees, your personal assets may be at risk. We can advise on the best course of action to protect your interests.
Can I recover from bankruptcy and start a new business?
Yes, once your bankruptcy proceedings are completed, you can start anew. Bankruptcy laws aim to give individuals and businesses a fresh start, though there may be restrictions and considerations to address.
How can I ensure a successful PKPU process?
Success depends on presenting a feasible Restructuring Plan, effective negotiations, and legal compliance. Engaging our experienced lawyers increases your chances of a favorable outcome, providing strategic advice and representation.
How do I start the process of debt restructuring or bankruptcy?
Contact us for a consultation. We will assess your situation, provide legal advice, and guide you through the necessary steps to initiate debt restructuring, PKPU, or bankruptcy proceedings.
What is a Company Registry document?
A Company Registry document is a formal record by Indonesian Ministry of Law and Human Rights that contains key information about a registered company in Indonesia, such as its legal name, address, shareholders, and directors.
Why is it important to check a company’s background before doing business?
Conducting a background check helps you verify a company’s legitimacy and legal standing, minimizing risks and ensuring trustworthiness.
What information can be obtained from a Company Registry search?
You can obtain details like the company’s legal status, registration number, shareholders, board of directors, authorized capital, and business activities.
What should I do if a company’s registry details seem suspicious?
Consult with our lawyers immediately to investigate further and ensure that all necessary legal actions are taken to protect your interests.
Is it possible to check whether a company has legal disputes or cases against it?
Yes, it needs further investigation.
Can I check the history of changes in a company’s structure?
Yes.
What types of company can I conduct background checks?
It is for foreign-owned company in Indonesia (PT Penanaman Modal Asing (PT PMA) and local company in Indonesia (PT PMDN).
The duration varies depending on the complexity of the case and whether the parties agree on terms. On average, it can take 6 (six) months, or it will be faster if both parties have agreed on terms.
