Indonesia accounting and tax considerations

Tetra Consultants provides Indonesia accounting and tax service. Our team of experts ensures that your Indonesia business is legally compliant with all regulations. Our international clients outsource their accounting and tax obligations to our team of experts and in return, we ensure all filings and reporting are done in a timely and accurate manner.

Company Registration

8 Weeks

Local Director?

Yes

Bank Account Opening

4 Weeks

Travel Required?

No

Excellent

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    Indonesia accounting and tax service

    Many international clients choose to outsource their Indonesia accounting and tax obligations to Tetra Consultants. Although there are plenty of filings and deadlines to meet in Indonesia, our team of experts will explain each requirement to our international clients to ensure everyone is on the same page. Tetra Consultants will timely complete your firm’s financial statements, corporate tax returns and manage auditors on your behalf.

    With a team of experienced experts, Tetra Consultants strives to provide timely and accurate accounting and tax services. Contact us now for a free consultation. Our team of experts will revert within the next 24 hours.

    Our accounting services include:

    • General ledger
    • Preparation of income statement and balance sheet
    • Monthly tax report for withholding tax and VAT
    • Annual tax report
    • Payment processing

    Our tax services include:

    • Tax advisory and planning
    • Individual tax
    • Corporate tax

    Tetra Consultants recommends our international clients to outsource their accounting and tax obligations to our team of experts. Instead of hiring local accountants or accounting firms, Tetra Consultants will act as your one-stop provider for accounting and tax services. We aim to reduce our clients’ administrative burden by preparing the documents in advance and updating our clients on a weekly basis.

    Before the start of engagement, our team will provide a detailed explanation on the services we will provide as well as the deadlines that we will meet. In addition, Tetra Consultants will ensure all filings are completed swiftly and accurately.

    Some accounting and tax obligations in Indonesia include:

    Corporate Income Tax Tax rates 

    • Generally, a flat rate of 25% applies. Public companies that satisfy a minimum listing requirement of 40% and other conditions are entitled to a tax cut of 3% off the standard rate, giving them an effective tax rate of 19%. 
    • Small enterprises, i.e. corporate taxpayers with an annual turnover of not more than IDR 50 billion, are entitled to a 50% discount of the standard tax rate which is imposed proportionally on taxable income of the part of gross turnover up to IDR 4.8 billion. 

    Corporate tax returns

    • Indonesia uses a self-assessment system for corporate income tax purposes. Monthly returns must be filed by the 20th day of the following month and annual returns within four months of the end of the book year, although the deadline may be extended by up to two months. 
    • The deadline for payment of the monthly corporate income tax installments is the 15th day of the following month. The deadline for payment of withholding tax is the 10th day of the following month. Annual corporate income tax payments must be made before the relevant tax return is filed.

    Value Added Tax (VAT)

    • The standard rate of VAT is 10%, increasing to 11% as from 1 April 2022. Exports of taxable tangible goods, certain taxable intangible goods, and certain taxable services are zero-rated.
    • LST rates range from 10% to 200%, depending on the type of luxury goods. Exports of luxury goods are subject to 0% LST.

    Registration: 

    • Entrepreneurs who deliver taxable goods and/or taxable services exceeding IDR 4.8 billion in a fiscal year must register for VAT purposes and issue VAT invoices on the delivery of taxable goods and/or taxable services. 
    • Entrepreneurs domiciled in free trade zones are not required to register.

    Filing and payment: 

    • Indonesia uses a self-assessment system for VAT. A monthly VAT return must be filed by the end of the following month, while the monthly VAT payment deadline is before the VAT return is filed. 
    • The deadline for payment of self-assessed VAT on the utilization of taxable intangible goods or taxable services from abroad is the 15th day of the month following the period when the VAT becomes due.

    Contact us now for a free consultation. Our team of experts will revert within the next 24 hours.






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