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Cross-Border Tax Opinions

Simplifying Cross-Border Taxes for Global Success

Doing business across borders comes with its own set of tax challenges. Whether it’s understanding how foreign income is taxed, dealing with double taxation, or navigating tax treaties, the complexity can be overwhelming. That’s where we come in. Our Cross-Border Tax Opinion services in Indonesia are here to make sense of these complexities, providing you with clear guidance that’s easy to follow.

How We Help You

  • Initial Consultation and Assessment
    We begin by thoroughly understanding your business, its operations, and the specific nature of your cross-border transactions.
    We assess the relevant tax treaties, and Indonesian tax regulations.
  • Detailed Tax Analysis
    Our team conducts a comprehensive analysis of your transactions, focusing on areas such as transfer pricing, permanent establishment risks, withholding taxes, and treaty benefits.
    We examine the potential tax implications in Indonesian jurisdictions, identifying areas where double taxation might occur and exploring ways to mitigate this.
  • Drafting Tax Opinion
    Based on our analysis, we draft a detailed tax opinion, outlining the tax obligations and opportunities available to your business.
    We provide practical recommendations on how to structure your transactions to ensure compliance with Indonesian tax laws while optimizing your tax position.
  • Review and Finalization
    We review the tax opinion with you, ensuring that it aligns with your business goals and addresses all your concerns.
    Once finalized, the tax opinion can serve as a critical document for your business, providing clarity and confidence in your cross-border operations.
  • Ongoing Support
    Tax regulations and business environments are constantly evolving. We offer ongoing support to keep your tax strategies aligned with any changes in the law or your business operations.
    Whether you need to update your tax opinion or seek advice on new transactions, our team is here to assist you every step of the way.

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Frequently Asked Questions

Can a foreign marriage be legally recognized in Indonesia?

Yes, a foreign marriage can be recognized in Indonesia under certain conditions. It must comply with the laws of the country where it took place and meet specific requirements outlined by Indonesian law, such as registration with Indonesian government authorities and Indonesian court.

How do I register a foreign marriage in Indonesia?

To register a foreign marriage in Indonesia, you typically need to submit a marriage certificate issued by the foreign country’s competent authority to the Indonesian Civil Registry Office (Dinas Kependudukan dan Catatan Sipil). Additional documents may be required depending on local regulations. If you do not register it and it has been exceeded by more than 1 (one) year, registration is legally required through the Indonesian court mechanism.

What are the legal implications of not registering a foreign marriage in Indonesia?

Failure to register a foreign marriage in Indonesia may lead to not having a legal standing and complications in legal matters such as property ownership and inheritance matters. It is important to ensure proper registration to secure legal recognition and rights in Indonesia.

How can I file for Divorce in Indonesia?

In Indonesia, divorce can be filed through the Religious Court (for couples of the same Muslim religion), or the District Court (for Non-Muslim religion and mixed-religion marriages). You must meet certain grounds for divorce as stipulated in Indonesian law.

What are the grounds for divorce in Indonesia?

Grounds for divorce in Indonesia may vary, it can include adultery, cruelty, abandonment, absence for a certain period, irreconcilable differences, etc.

What is the process of divorce in Indonesia?

The divorce process involves filing a petition, attending mediation (it is required by law), attending court hearings process, and presenting evidence to support grounds for divorce, then an Indonesian court will issue a court decision.

How long does it take to finalize a Divorce in Indonesia?

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.

How can I plan for Inheritance in Indonesia?

Estate planning in Indonesia involves drafting a will (wasiat) to specify asset distribution and minimize tax implications. Consulting with our legal expert can help you ensure your wishes are legally documented and executed.

What is the Prenuptial Agreement?

Prenuptial Agreement, often referred to as “Perjanjian Pra Nikah” in Indonesian, is a legal contract entered into by couples before marriage. It outlines the rights and responsibilities of each party regarding property ownership and distribution, financial arrangements, and other assets in the event of divorce.

What is the Postnuptial Agreement?

Postnuptial Agreement, known as “Perjanjian Setelah Nikah” in Indonesian, is similar to a Prenuptial Agreement but is entered into after marriage.

What are the benefits of having a Prenuptial or Postnuptial Agreement?

These agreements provide certainty and predictability in asset division, protect family wealth, and reduce conflicts in the event of divorce or separation. They allow couples to plan for the future and safeguard their financial interests.

What is the difference between a civil and commercial litigation case?

Civil litigation covers a broader range of disputes including personal injury and family law, while commercial litigation specifically deals with business-related disputes like contracts, partnerships, and corporate matters.

What are the common types of civil & commercial litigation in Indonesia?

Broadly speaking, there are two legal disputes, the Breach of Contract and the Unlawful Act issues.

What is a commercial contract dispute?

A commercial contract dispute arises when parties disagree on the interpretation or performance of a contract. Common issues include non-payment, breach of terms, and delivery of goods or services.

How long does civil & commercial litigation take in Indonesia?

The duration varies depending on the complexity of the case and the court’s schedule. Practically it takes around 6 (six) months on the first court instance (District Court).

Can disputes be resolved earlier before going to the court hearing process?

Yes, the court provides and facilitates the parties to settle the dispute in the early stage through a mediation process which involves a neutral mediator helping the parties settle.

How does commercial litigation interact with Indonesian bankruptcy laws?

Commercial litigation can intersect with Bankruptcy if a debtor is unable to pay. We assist in filing claims, representing your interests in bankruptcy proceedings, and ensuring your rights as a creditor are protected.

How do I enforce a court decision in a commercial dispute?

The specific enforcement methods depend on the nature of the judgment and legal mechanism. Please consult with our lawyer.

What are the risks of not addressing civil or commercial disputes promptly?

Delaying action can lead to escalated conflicts into more complicated, exceeding the statute of limitation, increased legal costs, and potential damage to your business.

What is the role of an expert witness in commercial litigation?

An expert witness provides specialized knowledge and testimony to support your case. They can help explain complex issues to the court and bolster your arguments with authoritative insights.

What is the difference between Litigation and Arbitration?

Litigation is a court-based process, while Arbitration is another legal forum, that involves neutral arbitrators who issue a binding decision. Arbitration is typically faster and more private but both parties shall mutually agree to settle the dispute into Arbitration and can be limited in scope of the legal disputes and legal remedy options.

What is the role of evidence in commercial litigation?

Evidence is crucial in proving your case. This includes documents and witness testimony. Our lawyer assists in gathering and presenting evidence effectively to support your claim.

What happens if a party does not comply with a court order?

Non-compliance can lead to enforcement actions such as asset seizure or additional legal penalties. Our lawyers take necessary steps to ensure compliance with court orders and protect your interests.

What is the importance of contract drafting in preventing commercial litigation?

Proper contract drafting helps prevent disputes by clearly outlining the rights and obligations of each party. We assist in drafting and reviewing contracts to minimize the risk of future litigation.

Can foreign companies litigate in Indonesia?

Yes, they must comply with local laws and legal procedures. We provide guidance and representation to navigate the Indonesian legal system effectively.

What should I do if I am being sued or receive a legal notice or summons from an Indonesian court?

Contact our lawyer immediately to review the notice or summons, understand your legal obligations, formulate and develop the legal strategy. Prompt action is essential to protect your rights and interests.

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.

To register a foreign marriage in Indonesia, you typically need to submit a marriage certificate issued by the foreign country’s competent authority to the Indonesian Civil Registry Office (Dinas Kependudukan dan Catatan Sipil). Additional documents may be required depending on local regulations. If you do not register it and it has been exceeded by more than 1 (one) year, registration is legally required through the Indonesian court mechanism.

Employees are entitled to 12 days of paid annual leave after completing one year of continuous service with the same employer. This entitlement is separate from public holidays and must be provided in compliance with company regulations or employment contracts.

A CLA is a negotiated agreement between the employer and a registered labor union, outlining terms of employment for the union members. It covers salaries, benefits, dispute resolution mechanisms, and working conditions. CLAs must be registered with the Ministry of Manpower.

No, you cannot convert a Single-Entry or Multiple-Entry Business Visa to a KITAS. KITAS applications must be initiated separately through your employer or investment sponsor and require different documentation and procedures.

It is advisable to begin the renewal process 30 to 60 days before your KITAS expires to allow sufficient time for processing.

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