Navigating Indonesia’s taxation system can be complex, but compliance is crucial for businesses to maintain legal standing and avoid penalties. At Kusuma & Partners, we offer end-to-end support for both Monthly and Annual Tax Compliance services, ensuring that you meet your obligations under the Indonesian tax regulation framework. Our goal is to simplify tax management so you can focus on your business.
(1) With holding Tax (PPh Pasal 21, 23, 26, 4(2))
Indonesian businesses must withhold certain taxes on payments to employees, suppliers/contractors, and other service providers. These include income tax for salaries (PPh 21), services (PPh 23), dividends, interest, and royalties (PPh 26 for non-residents), and final tax on certain transactions (PPh 4(2)).
Procedure:
(2) Value-Added Tax (VAT) / (Pajak Pertambahan Nilai – PPN)
VAT is imposed on the sale of goods and services in Indonesia. Registered taxpayers (PKP) must calculate and report VAT monthly.
Procedure:
(1) Corporate Income Tax (PPh Badan)
Every company in Indonesia must file an annual corporate income tax return.
Procedure:
(2) Personal Income Tax (PPh Orang Pribadi)
Personal income tax is due for individuals residing in Indonesia.
Procedure:
Our Monthly and Annual Tax Compliance Procedures Mechanism
The Indonesian tax regulation framework imposes a structured mechanism for compliance, including deadlines, penalties for late submissions, and audits. We assist clients by following this mechanism diligently:
What is a Legal Opinion?
A Legal Opinion is a formal written document from a lawyer that provides legal advice or interpretation on specific legal issues based on the applicable laws and regulations.
When do I need a Legal Opinion?
You need a Legal Opinion when facing complex legal issues, entering contracts, disputes, or when clarity on specific legal points is necessary for business decisions.
What are the typical contents of a Legal Opinion?
A Legal Opinion usually includes an introduction, the legal context, a detailed analysis of the relevant laws, and the lawyer’s conclusions and recommendations.
What areas of law do you provide Legal Opinions on?
We cover various areas, including corporate law, foreign investment, employment law, business disputes, and regulatory compliance in Indonesia.
Are Legal Opinions required for business transactions in Indonesia?
While not always mandatory, Legal Opinions are often requested in such business disputes and major transactions like mergers & acquisitions, or financing to clarify legal risks.
How do Legal Opinions assist foreign investors in Indonesia?
Legal Opinions help foreign investors navigate Indonesian regulations, ensuring their investments comply with local laws and reducing the risk of legal issues.
How long does it take to receive a Legal Opinion?
The timeframe depends on the complexity of the issue, typically ranging from a few days to a couple of weeks.
What is the cost of obtaining a Legal Opinion?
Costs vary based on the complexity of the legal issue and the required research. We offer transparent fee structures after understanding your needs.
Do you provide Legal Advice for startups and new businesses?
Yes, we regularly advise startups and new businesses, particularly regarding compliance, contracts, and foreign investment regulations in Indonesia.
Can Legal Opinions be used in court?
Yes, Legal Opinions can serve as important references or supporting documents during court proceedings or disputes, but they are not legally binding.
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.
Employees who are terminated are entitled to severance pay, long-service pay (if applicable), compensation rights, and other benefits as mandated by Government Regulation No. 35 of 2021. The amount depends on the reason for termination and the employee’s length of service.
Postnuptial Agreement, known as “Perjanjian Setelah Nikah” in Indonesian, is similar to a Prenuptial Agreement but is entered into after marriage.
It is advisable to begin the renewal process 30 to 60 days before your KITAS expires to allow sufficient time for processing.
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.
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.
Layoffs must be carried out according to the procedures outlined in Government Regulation No. 35 of 2021. Employers are required to attempt negotiations with the employee and offer compensation packages, including severance pay, long-service pay, and compensation for rights such as untaken leave.
