Buying a business in Indonesia requires more than price negotiation. Investors must also choose the right transaction structure. In many deals, the key question is simple. Should the buyer acquire selected assets or purchase shares in the company? This decision affects liability, tax, licensing, employees, contracts, and closing risk. Asset acquisition Indonesia may offer cleaner […]
Indonesia remains one of Southeast Asia’s most attractive markets. Its population, resources, digital economy, and infrastructure growth create strong business opportunities. However, foreign investors cannot rely only on commercial potential. They must understand Foreign Ownership Indonesia rules before investing. A profitable business idea can fail if the ownership structure violates Indonesian law. Investors also face […]
In many Indonesian business deals, one party opens the door to a valuable commercial opportunity. That party may introduce a buyer, supplier, investor, distributor, lender, project owner, or strategic partner. Then the real risk appears. What if the introduced parties bypass the introducer and close the deal directly? This is where a Non-Circumvention Agreement Indonesia […]
Labor disputes are typically resolved through bipartite negotiations, mediation, and tripartite through Local Manpower institution. If these measures fail, disputes may be escalated to the Industrial Relations Court.
Employers are required to register their employees with BPJS (Badan Penyelenggara Jaminan Sosial) for health and employment benefits, including health insurance, old-age benefits, work accident protection, and death insurance. The contributions are shared between the employer and the employee.
The Indonesian Ministry of Law and Human Rights Regulation Number 22 of 2023 outlines the legal framework for all visas and stay permits.
There are two types of employment contracts: Fixed-term contracts (Perjanjian Kerja Waktu Tertentu or PKWT) and Indefinite-term contracts (Perjanjian Kerja Waktu Tidak Tertentu or PKWTT). Fixed-term contracts are used for specific time periods or projects, while indefinite-term contracts are open-ended.
When should I apply for a tax ruling?
You should consider applying for a tax ruling when you face complex or unclear tax issues that could impact your business decisions. A tax ruling can provide you with the necessary legal certainty before you proceed.
What types of tax facilities are available in Indonesia?
Indonesia offers various tax facilities, including tax holidays, reduced tax rates, and exemptions, designed to encourage investment and business activities in certain sectors or regions. These facilities can significantly reduce your tax burden.
How do I know if my business qualifies for tax facilities?
Our team conducts an eligibility assessment based on your business activities and the criteria set by the Indonesian government. We identify the most beneficial tax facilities that apply to your situation.
What documents are required for a tax ruling application?
Typically, you’ll need to provide a detailed description of the tax issue, legal arguments, and any supporting evidence. We help you prepare all the necessary documentation to ensure a strong application.
How long does it take to get a tax ruling in Indonesia?
The processing time for a tax ruling can vary depending on the complexity of the issue and the workload of the tax authorities. On average, it may take several weeks to a few months.
What happens if my application for tax facilities is approved?
Once approved, you must comply with the conditions set by the tax authorities to maintain the benefits. We provide ongoing support to ensure you meet these requirements and continue to benefit from the tax facilities.
Are tax rulings legally binding in Indonesia?
Yes, once issued, tax rulings are legally binding for both the taxpayer and the tax authorities. They provide a clear legal framework for how the relevant tax laws will be applied to your specific case.
How does the Indonesian government decide who gets tax facilities?
Tax facilities are granted based on specific criteria set by the government, which may include the type of business activity, the investment amount, the region of operation, and the expected economic impact.
What is the difference between a tax ruling and a tax opinion?
A tax ruling is an official decision from the tax authorities, whereas a tax opinion is a professional interpretation provided by a tax advisor. While a tax opinion can guide you, a tax ruling offers legal certainty from the government.
Can tax facilities be revoked once granted?
Yes, tax facilities can be revoked if the business fails to comply with the conditions set by the tax authorities. Regular compliance and reporting are essential to maintaining these benefits.
