Indonesian Tax Law

: Car Tax in Indonesia【There is no public vehicle inspection system and insurance is voluntary.】

2021/9/3

There are two types of car tax in Indonesia: the annual car tax to be paid when the vehicle certificate is renewed, and the car tax to be paid every five years when the license plate is replaced and the engine registration number is checked.

: Wage subsidies to help low-income people affected by the Corona pandemic【How to calculate the Social Insurance BPJS TK】

2021/9/11

Indonesia's social security system, BPJS, includes both social insurance and medical insurance, and low-income social insurance subscribers who earn less than 5 million rupiah per month will receive a wage subsidy of 600,000 rupiah per month from the government for four months as a wage subsidy for the coronation disaster.

: In Indonesia, whether to separate or merge taxpayer identification numbers (NPWPs) for married couples

2020/4/17

Last week at a customer's factory in Karawang, a six-month pregnant woman in the production control department was rubbing her big belly and whispering about taxes.

: Differences in Personal Income Tax between Japan and Indonesia

2020/3/30

Most countries use Excessive progressive taxation, for example, in Indonesia, if you have 240 juta of taxable income, your income tax will be calculated at the rates of "5% on 50 juta" and "15% on the remaining 190 juta over 50 juta".

: Documents required for application for PKP registration as a business subject to VAT in Indonesia

2021/1/4

A taxable business PKP is a legal entity subject to value-added tax PPN and pays VAT on the difference between 10% (PPN-Out) of sales of taxable items BKP and taxable services JKP and 10% (PPN-In) of purchases.

: Revision of the pro forma standard taxation system for small and medium-sized sole proprietors in Indonesia

2020/11/8

The 1% separate tax regime (PP46) on turnover (PP23), which is available to SMEs with an annual turnover of less than 4.8 miliyar, has been revised (PP46) and the tax rate has been reduced to 0.5%, while the period of application is limited to three years. If the profit margin is less than 4%, the normal corporate income tax rate is a benefit.

: How to calculate the tax in case of exceeding the tax exemption limit when entering Indonesia

2020/3/30

According to Direktorat Jenderal Bea dan Cukai (DJBC) Kementerian Keuangan (Kemenkeu), the Indonesian Ministry of Finance's Directorate of Revenue and Taxation, the duty-free limit for goods shopped outside of Indonesia and brought into the country will be increased to $500 or 6.75 juta from the previous $250 or 3.3 juta per person, effective January 28, 2018, a substantial easing measure given the dollar's recent appreciation of the rupiah against the dollar.

: Indonesian personal income tax PPH21 and withholding certificate A1 form for tax return

2020/4/17

Indonesia's personal income tax, PPH21, is the same as Japan's personal income tax (PPH21), and the tax rate varies depending on your taxable income.

: Indonesian Tax Rule

2020/3/28

Indonesia tax rule from the point of view of accounting system When implementing accounting system in Indonesia, we need some knowledge about Indonesian tax rule. Personal income tax (PPH21) related to payroll system. VAT (PPN) related to issuing invoice to customer or receiving invoice from supplier . Withholding service income tax (PPH23) related A/P entry (Indonesia) or A/P settlement (Thailand). Custom dutty (Bea Masuk) and withholding import tax (PPH22) journalized from payment voucher. Others (PPH25, PPH24, PPH4(2), PPH26, PPH29) journalized from payment voucher Income tax Corporate income tax (PPH25) As long as Indonesia is under liberal economy, the main tax ...

: Entities in the Indonesian supply chain that bear PPN and PPH value added and income tax

2020/4/12

The VAT paid upfront in the supply chain is borne by the end consumer who does not charge 10% VAT due to the sales activity, resulting in the payment from the consumer to the tax office being made on behalf of each business.

: Restaurant tax and service charge, which you are not usually aware of in Indonesia

2020/4/12

In Indonesia, entertainment expenses are set as SGA expenses under the name of Biaya Entertainment, but if it is "business related food and beverage (jamuan makan untuk relasi bisnis)", it can be deducted from gross income (Penghasilan Bruto), generally gross profit, as SGA expenses and subject to corporate income tax.

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Overseas Assets Returned to Indonesia in Tax Amnesty

2020/3/31

Instead of transferring the after-tax net profit after paying income tax from the profit obtained from domestic business to retained earnings or capital reserve, you can remit to overseas subsidiaries to purchase overseas assets (in other words, foreign investment) and post them as assets in the B/S of the overseas subsidiaries, and there will be no complaint.

: Buying Real Estate in Indonesia and Land and Building Tax

2020/3/31

Since the real estate appraisal value of land and building tax (PBB-P2 = Pajak Bumi dan Bangunan Perdesaan dan Perkotaan) in Indonesia is set much lower than the market value, the PBB-P2 you pay every year can be fairly cheap.