About us

What is Indonesian Tax Advisory, and why is it important for my business?

Indonesian Tax Advisory involves expert guidance on navigating Indonesia’s complex tax regulations. It’s essential for ensuring compliance, optimizing tax liabilities, and avoiding penalties.

How can your firm help with my tax planning in Indonesia?

We provide tailored tax planning strategies that align with your business goals, helping you minimize tax liabilities while ensuring full compliance with Indonesian tax laws.

What types of taxes are applicable to businesses in Indonesia?

Businesses in Indonesia are subject to several taxes, including corporate income tax, VAT, withholding tax, and specific industry-related taxes. We help you understand and manage these obligations effectively.

How often should I review my tax strategy in Indonesia?

It’s recommended to review your tax strategy annually or whenever there are significant changes in your business operations or tax regulations. We provide ongoing advisory services to keep your strategy up to date.

What are the consequences of non-compliance with Indonesian tax laws?

Non-compliance can result in penalties, fines, and legal issues that can disrupt your business operations. Our services help you stay compliant and avoid these risks.

How can I take advantage of tax incentives in Indonesia?

Indonesia offers various tax incentives for specific industries and activities. We identify relevant incentives for your business and help you apply for and maximize these benefits.

What should I do if I receive a tax audit notice?

If you receive a tax audit notice, it’s crucial to respond promptly. We assist in preparing for the audit, ensuring all documents are in order, and representing you during the process.

How do Indonesian tax laws affect foreign-owned businesses?

Foreign-owned businesses must comply with both local and national tax regulations, which can be complex. We provide specialized advisory services to help foreign businesses navigate these requirements.

What is the process for filing taxes in Indonesia?

Filing taxes in Indonesia involves preparing and submitting tax returns according to the schedule set by the tax authorities. We assist with accurate preparation and timely submission of all necessary documents.

How do changes in Indonesian tax laws impact my business?

Changes in tax laws can affect your tax obligations and business operations. We keep you informed of any changes and adjust your tax strategy accordingly to ensure continued compliance.

How can I ensure my business is tax-efficient in Indonesia?

Tax efficiency involves strategic planning, taking advantage of available incentives, and maintaining compliance. Our advisory services focus on optimizing your tax position while minimizing liabilities.

Are there any specific tax considerations for startups in Indonesia?

Startups may be eligible for tax incentives and exemptions. We provide tailored advice to help new businesses navigate tax requirements and take advantage of available benefits.

What documentation is required for tax advisory services?

The documentation needed depends on the specific advisory service. Typically, you’ll need financial statements, previous tax filings, and details of your business operations. We assist in gathering and reviewing all necessary documents.

What should I do if I’ve missed a tax deadline?

If you’ve missed a tax deadline, it’s important to act quickly to minimize penalties. We can help you file late returns and negotiate with tax authorities to reduce any associated fines.

How do changes in my business structure affect my tax obligations?

Changes in your business structure, such as mergers, acquisitions, or expansions, can significantly impact your tax obligations. We provide advisory services to help you navigate these changes smoothly.

Are there specific tax considerations for digital businesses in Indonesia?

Digital businesses are subject to unique tax rules, including VAT on digital services and potential income tax obligations.

What is the impact of tax treaties on my business operations in Indonesia?

Tax treaties between Indonesia and other countries can affect how your business is taxed, particularly regarding double taxation.

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.

In the event of a Merger or Acquisition (M&A), employees’ rights and contracts must be maintained, or the new employer must negotiate new terms with the affected employees. Severance and compensation payments may be applicable if there are changes to the employment terms or if employees are terminated as a result of the merger.

Non-compete clauses are not explicitly regulated under Indonesian law, but they may be included in employment contracts. However, their enforceability depends on the specific terms, reasonableness of the restrictions, and the protection of the employee’s rights to earn a livelihood.

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.