About us

The MERP allows you to leave and re-enter Indonesia while holding a KITAS. Without a MERP, your KITAS would be invalidated upon exit. The permit typically lasts for the duration of your KITAS and must be renewed along with your KITAS if needed.

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.

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 an Investor KITAS, and how is it different from a Work Permit KITAS?

The Investor KITAS allows foreign nationals who hold significant shares in an Indonesian company to live and manage their investment in Indonesia. Unlike the Work Permit KITAS, the Investor KITAS does not require a separate work permit (IMTA) as it focuses on investment management rather than employment.

What are the key legal regulations governing visas and stay permits in Indonesia?

The Indonesian Ministry of Law and Human Rights Regulation Number 22 of 2023 outlines the legal framework for all visas and stay permits.

Can I apply for a Work Permit KITAS if I work for a foreign company based outside of Indonesia?

No, a Work Permit KITAS requires sponsorship from a legally registered Indonesian company. Foreign companies based outside Indonesia cannot sponsor a KITAS unless they establish a legal presence in Indonesia, such as a PT PMA.

Can I convert a Single-Entry Business Visa or Multiple-Entry Business Visa to a KITAS?

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.

What should I do if I need to renew my KITAS?

Renewals must be processed before your KITAS expires. We recommend starting the process well in advance to avoid overstaying penalties.

Can I bring my family with me on a Work Permit KITAS

Yes, you can bring immediate family members (spouse and children) under a Dependent KITAS. Your dependents will be issued a KITAS based on your work permit, allowing them to stay in Indonesia legally, though they cannot work.

Can I work in Indonesia with an Investor KITAS?

Yes, as an investor, you are allowed to manage and oversee your investments. However, the Investor KITAS does not permit traditional employment for other companies; it only covers activities related to managing your investments.

What happens if I overstay my visa or KITAS in Indonesia?

Overstaying your visa or KITAS can lead to fines of IDR 1 million per day, and if overstaying persists, deportation and potential blacklisting from Indonesia are possible. It’s important to ensure timely renewals and proper visa management.

How long does it take to process a Work Permit KITAS?

The processing time can vary, but typically it takes around 2 to 4 weeks from the submission of the required documents to the issuance of the KITAS.

What happens if my employment contract ends before my Work Permit KITAS expires?

If your employment contract ends, your employer must report the termination to the immigration office, and your KITAS will be canceled. You are required to leave Indonesia unless you secure another sponsorship or transition to a different visa type.

Can I conduct business activities on a Tourist Visa in Indonesia?

No, business activities such as attending meetings or negotiations are not allowed on a Tourist Visa. For such activities, you must apply for a Single-Entry Business Visa or a Multiple-Entry Business Visa, depending on your needs.

What are the consequences of working in Indonesia without a Work Permit KITAS?

Working without a proper Work Permit KITAS (Index E23) is a serious violation of Indonesian immigration laws. It can lead to fines, deportation, and possible blacklisting, preventing future entry into Indonesia. Always ensure you have the correct permit before engaging in any employment.

Can I change my visa type while in Indonesia?

In most cases, changing visa types (e.g., from a Business Visa to a KITAS) requires leaving Indonesia and applying from abroad. However, specific visas, such as a temporary visa to KITAS, may be converted under certain conditions. We can guide you on the best approach based on your situation.

Can I apply for a Work Permit KITAS (Index E23) if I am a freelancer or self-employed?

No, freelancers or self-employed individuals cannot apply for a Work Permit KITAS. The KITAS requires sponsorship from an Indonesian company that employs you in a specific role. However, other visa types may be available depending on your circumstances and types of freelancer activity.

How soon should I apply for a KITAS renewal before it expires?

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

Can I hold both a Work Permit KITAS and an Investor KITAS simultaneously?

No, you cannot hold both at the same time. You must choose between the Work Permit KITAS and the Investor KITAS depending on your role in Indonesia, whether it is as an employee or an investor.

What if my company’s investment level drops below the threshold required for an Investor KITAS?

If your investment falls below the required threshold (IDR 1 billion in shares or IDR 10 billion in capital), your Investor KITAS may be revoked, and you could lose your right to stay in Indonesia under that permit. It’s essential to monitor your investment levels to maintain compliance.

Can I study in Indonesia with an Investor KITAS or Work Permit KITAS?

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.

How does the Multiple Exit Re-entry Permit (MERP) work with a KITAS?

The MERP allows you to leave and re-enter Indonesia while holding a KITAS. Without a MERP, your KITAS would be invalidated upon exit. The permit typically lasts for the duration of your KITAS and must be renewed along with your KITAS if needed.

Can I apply for a KITAS on arrival in Indonesia?

No, you cannot apply for a KITAS upon arrival. The KITAS must be processed before entering Indonesia, and you will need an entry visa related to the KITAS (e.g., VITAS) to convert it into a KITAS upon arrival.

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).