Indonesia Tax Compliance Map

E-mail: jkt4ww@evershinecpa.com
or
Contact us by WeChat or Skype or WhatsApp in the day-work-time of Taiwan (GMT+8)
The Engaging Manager from Headquarter
Ms. Judy Wang, CPA(Taiwan) Speaks in both English and Chinese.
WeChat: Judy_Evershine
skype: Judy Wang

GLA – Indonesia Corporate Income Tax

GLA-ID-01 GLA Tax Entity

Question from client:
Is Indonesia corporate income tax a national income tax? A province income tax? Or is there a national and province income tax?
What if the national income tax and the province income tax are levied separately or levied together?
What is the standard tax rate? What is the special tax rate?

Answer from Evershine RD:
Corporate tax is imposed on a national level and no further province taxes apply on income.
The main national tax rate for corporations is 22%.
Accordingly, the CIT rate for the 2022 tax year and thereafter will remain at 22%.

GLA-ID-02 Registration

Question from client:
Which government unit is responsible for the collection of Indonesia’s corporate income tax?
The registration of the country’s corporate income tax status, that is, the tax certificate number application procedure, paper certificate number application?
Or online account application? URL?
What is the advance certificate number for applying for this certificate number?
Do I need to use the industrial and commercial certificate electronic card to apply?

Answer from Evershine RD:

Tax administration is by the Directorate General of Tax (DGT) through a network of tax service offices.
DGT has 3 types of branch offices throughout Indonesia:

1. Large Taxpayers Office administers the largest national taxpayers
2. Medium Taxpayers Office administers medium-sized taxpayers
3. Small Taxpayers Office administers small businesses and individual taxpayers.

Tax Identification Number (TIN) is known as Indonesia as Nomor Pokok Wajib Pajak (NPWP) for income tax and VAT purposes.
NPWP is comprised by 15 numeric digits.
Business entities that wish to register to obtain a TIN can register by filling out the online registration form available on the https://ereg.pajak.go.id/daftar and uploading the required documents.
NPWP is issued no later than 1 working day after the complete application is received.
Documents need to be attached are as follows:

1. Photocopy of the document for the establishment of a business entity, in the form of:
   1. deed of establishment or document of establishment and amendments thereto, for domestic corporate taxpayers; or
   2. a letter of appointment from the head office, for a permanent establishment or representative office of a foreign company.
2. Documents showing the identity of all board members of the agency:
   1. for Indonesian Citizens, namely a photocopy of the Taxpayer Identification Number Card.
   2. for Foreign Citizens, namely:
      • photocopy of passport; and
      • photocopy of Taxpayer Identification Number Card if the foreigner has been registered as a Taxpayer.

GLA-ID-03 GLA Order (OD)

Question from client:
What is the order of Indonesia corporate income tax return (information flow determines tax base) and payment (fund flow)?
Pay first and then declare? Report first and then pays?
At the same time as the declaration and payment?

Answer from Evershine RD:
Deposit first (DF). Pay by installment first and declare later.
Prepayments of corporate income tax liabilities must be deposited monthly based on the previous year’s taxable income, with a final balancing amount payable before submitting the corporate income tax return.
Returns filed, e.g., in 2021 regarding a taxpayer’s liability for the 2020 tax year, will report income from the 2020 tax year and calculate tax on that basis.

GLA-ID-04 Mechanism of Filing (MOF)

Question from client:
What is the return method for Indonesia corporate income tax return (information flow determines the tax base)?
Filing cycle: monthly? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist? If electronic filing is possible: website URL?

Answer from Evershine RD:
Article 25 Income Tax Installment- monthly tax payment deadline is 15^th of the following month and monthly tax return filing deadline is 20^th of the following month.
The corporate income tax return filing and payment deadline is the end of the fourth month after the financial year end.
Corporate taxpayers who are registered in the Middle Tax Office, Special Tax Office, or Regional Tax Office, and regional tax office taxpayers must use electronic filing.
Channel for submission of annual corporate income tax returns (SPT):

1. e-filing, upload the csv file from the e-SPT application to the website of the Directorate General of Taxes (https://djponline.pajak.go.id/account/login) or ASP Service Providers (Application Service Providers).
2. e-Form, fill in the downloaded file from the djponline page and then upload it again. Once sent, the Electronic Receipt will be sent to the registered email.

GLA-ID-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for Indonesia’s corporate income tax payment (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize the deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT?
Or the above methods coexist?

Answer from Evershine RD:
Article 25 Income Tax Installment- monthly tax payment deadline is 15^th of the following month and monthly tax return filing deadline is 20^th of following month.
You can make tax payments/ deposits to the State Treasury through the Perception Bank/ Perception post/ Other Perception Institutions.
Tax payments and deposits are made using a Tax Payment Letter (SSP) or Proof of State Revenue (BPN) for payment and deposit of taxes through an electronic tax payment system or by coming directly to the Perception Bank.
You can make an online SSP through the Directorate General of Taxes Billing Application or deposit via the counter/ teller (over the counter).
Log in to www.pajak.go.id, create a billing code, tax billing payments are made to the State Treasury account through ATM, Internet Banking, EDC Machines, Mobile Banking, Branchless Banking Agents, or at Bank/ Post perception counters.

VAT – Indonesia VAT

VAT-ID-01 VAT Tax Entity

Question from client:
Is Indonesia VAT national VAT? Province VAT? Or is there a national plus province VAT?
What if the national VAT and province VAT are levied separately or levied together?
What is the standard VAT rate? What is the special VAT rate?

Answer from Evershine RD:
VAT is imposed on a national level and no further province taxes apply.
The standard rate of VAT in Indonesia is 10% under Article 7 of the VAT Act.
VAT may be increased or decreased to a rate between 5% and 15%, under government regulations.
On and after 1 April 2022, the standard rate of VAT in Indonesia is 11%, under Law 7 of 2021.

VAT-ID-02 Registration

Question from client:
Which government unit is responsible for the levying of VAT in Indonesia?
The registration of Indonesia’s VAT levy status, that is, the application procedure for VAT certificate number, paper certificate number application? Or online account application? URL?
What is the advance certificate number for applying for a VAT certificate number?
Do I need to use an industrial and commercial certificate electronic card to apply?

Answer from Evershine RD:
There are no state, provincial, or local indirect taxes, therefore no registration is required other than federal registration.
VAT (Pajak Pertambahan Nilai) in Indonesia is levied under Law No. 8 of 1983, as amended in force on 1 April 1984 (the VAT Act).
The Government Regulation of the Republic of Indonesia Number 1 of 2012 governs the implementation of the VAT Act.
The Directorate General of Taxes (DGT) is responsible for the administration of VAT in addition to income tax.
An entrepreneur can apply for Indonesian VAT registration at the relevant tax office where the taxpayer is located.
Entrepreneurs can apply to register electronically on the website of the Directorate General of Taxes.
Upon registration, a VAT number in the format “XX.XXX.XXX.X-XXX.XXX” is issued.

VAT-ID-03 WWT Order (OD)

Question from client:
What is the order of Indonesia’s VAT declaration (information flow determines the tax base) and payment (fund flow)?
Pay first and then declare? First declare and then pay?
At the same time as the declaration and payment?

Answer from Evershine RD:
Same Period (SP) – Declare and pay at the same time.

VAT-ID-04 Mechanism of Filing (MOF)

Question from client:
What is the return method for Indonesia VAT declaration (information flow determines the tax base)?
Reporting cycle: every month? Every bimonthly? Every season? every half year?Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist?
If electronic filing is possible: Website URL?

Answer from Evershine RD:
VAT returns must be submitted monthly by the end of the month following the month being reported on.
The taxpayer must submit the completed returns to the tax service office where the taxpayer is registered.
The VAT return, SPT Masa PPN 1111 is available on the website of the Directorate General of Taxes, consists of 1 main form and 6 attachment forms.
Electronic filing can be done through an online application (e-filing) or e-SPT software.

VAT-ID-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for Indonesia VAT payment (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize the deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
OCT payment at the bank counter?
Or the above methods coexist?

Answer from Evershine RD:
VAT must be deposited no later than the end of the following month after the end of the tax period and before Notification Letter of the VAT Period is submitted.
To pay/ deposit PPN, the Tax Payment Letter (SSP) form is used which is available at Tax Service Offices and Tax Counseling and Consultation Service Offices (KP2KP) throughout Indonesia.
The SSP is valid when VAT is deposited according to Bank, Post office, or Directorate General of Customs.

Please be aware of below Warning:
The above contents are digested by Evershine R&D  and Education Center in October 2021.
Regulations might be changed as time goes forward and different scenarios will adopt different options.
Before choosing options, please contact us or consult with your trusted professionals in this area.

Contact Us

Jakarta Evershine BPO Service Limited Corp.
E-mail: jkt4ww@evershinecpa.com
or
Contact us by WeChat or Skype or Whatsapp in the day-work-time of Taiwan (GMT+8)
The Engaging Manager from Headquarter
Ms. Judy Wang, CPA(Taiwan) Speaks in both English and Chinese.
WeChat: Judy_Evershine
skype: Judy Wang

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