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VAT on E-Commerce

The development of digital technology has created an ecosystem for e-commerce which demonstrates cross-border business transactions, including the sale and purchase of Taxable Goods (BKP) and Taxable Services (JKP). Business entities that have been confirmed as Taxable Businessman (PKP) in Indonesia are bound by Value Added Tax (PPN) regulations for the transfer of BKP and/or … Read more

Tax Cases for Infrastructure Projects

Infrastructure development is the government’s capital sector to achieve more equitable economic growth. Infrastructure is used as one of the benchmarks of a country’s development. From time to time, the infrastructure built by the government is increasing. Taxes have an essential role because taxes are a source of state revenue to finance state spending, including … Read more

Taxation of Oil Palm Plantations

Indonesia has a lot of attractivfe land for oil palm plantation business. The characteristics of palm oil produce a smooth and soft oil; free from trans fats; to oils that have no taste and smell. As an industry, the palm oil sector has tax regulations set by the Indonesian tax authorities. Taxes imposed on oil … Read more

Adjustment of Value Added Tax Policy in the Law on Harmonization of Tax Regulations

In order to increase Indonesia’s sustainable economic growth and support the acceleration of economic recovery, and optimizing state revenues to finance national development independently towards fair Indonesian society, affluent and prosperous, it takes various efforts from the Government to make adjustments to fiscal policy. The ratification of the Law on the Harmonization of Tax Regulations … Read more

Taxation For Listed Company

The taxation of companies listed on the Indonesia Stock Exchange (IDX) is generally the same as that of private companies. Companies registered on the IDX are Domestic Corporate Taxpayers (WPDN Badan). Tax compliances attached to Domestic Corporate Taxpayers are Income Tax (PPh) and Value Added Tax (VAT). There are 3 (three) types of tax collection … Read more

Value Added Tax on the Utilization of Overseas Services

Indonesia is an investment destination country with competitive advantages such as abundant natural resources, a well-trained young workforce, and a large and growing domestic market. Competitive advantages are increasingly easily enjoyed by investors after the issuance of Law No. 11 of 2020 on Job Creation, which is intended to create a better investment climate and … Read more

Transfer Pricing Documentation

Does your company perform domestic or cross-border transaction with your related party? If it does, then you must do the transaction in accordance with the arm’s length principle. Article 18 (3) of the Income Tax Law states that the Directorate General of Taxes (DGT) has the authority to recalculate the taxable income or deductible costs … Read more

Tax Treatment Related to Customer Loyalty Programs

As a general business practice, the Company provides incentives to their customers who purchase its products for resale. Customers who purchase and resale the products are encouraged to achieve certain conditions for obtaining incentives. The form of incentives can be in money, payable reduction (rebates), in kind and goods. Certain conditions that occur in a … Read more

TAX Treatment of Trade Transactions Through E-COMMERCE

The Indonesian Tax Authority has regulated the tax treatment of trade transactions through an electronic system (e-commerce). The regulation is stipulated in PMK No.210/PMK.010/2018 and is effective on April 1, 2019. In the regulation, the law of tax treatment on e-commerce includes Value Added Tax, Sales Tax on Luxury Goods, Income Tax on transactions within … Read more

LAST CALL: Volunteer Disclosure Program 2022

The deadline for participating in the Voluntary Disclosure Program (PPS) or widely referred to as Tax Amnesty II is June 30, 2022. This program starts on January 1, 2022, referring to Law Number 7 of 2021 concerning the Harmonization of Tax Regulations (“UU HPP”) which was passed on October 29, 2021. The Indonesian tax authorities … Read more