Indonesia Tax Reporting

Individuals and companies that generate income in the country should pay taxes and file the correct returns.

Note that for companies, they are required to report the tax monthly even with the business having no activity or transactions, where the concept of zero tax reporting is applied.

In Indonesia, two systems run concurrently: Employers will withhold taxes of their workers (regardless whether they’re local or foreign), while employees have to file their own as well.

Guide to filing taxes

1. INDIVIDUAL INCOME TAX

When to File:     20th of the following month (monthly), end of the fourth month after the end of the tax                                year (annual)

When to Pay:     15th of the following month

2. CORPORATE INCOME TAX

When to File:     20th of the following month (monthly), end of the third month after the end of the tax                                    year (annual)

When to Pay:     15th of the following month

3. VAT AND LGST (LUXURY GOODS SALES TAX)

When to File:     end of the next month

When to Pay:     before the deadline of the VAT return

4. WITHHOLDING TAXES (INCLUDING EMPLOYEES)

When to File:     20th of the following month

When to Pay:     10th of the following month

Let HC Consultancy take care of all your accounting needs!

Indonesia tax reporting and planning is just one of the long lists of responsibilities you need to do to be compliant with the government’s rules.

You also have to maintain financial records like accounting books for a period of 10 years, as well as get your tax identification number called NPWP.  Moreover, you need to have your books audited and even subject yourself to a tax audit.

All figures, meanwhile, should be expressed in rupiah while written records must be in Bahasa Indonesia.

The quickest, easiest, and most comfortable way to manage your taxation system is by letting our experts take care of it for you, so you are able to run your core business operations.

Our company offers complete takeover of your taxation, accounting, and auditing. We also handle the paperwork and even payroll processing. Just tell us what you need and we’re here to give you the options.

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