To help you to comply with these rules, Cekindo provides complete accounting and tax reporting services, including individual and corporate tax in Indonesia.

1. ACCOUNTING AND TAX REPORTING
cekindo.com
Since 2012
DOING BUSINESS IN
INDONESIA

2. Accounting and Tax Reporting
in Indonesia
Accounting and tax reporting are critical, basic business processes
requiring accuracy and timeliness. Indonesia has its own finance
and tax regulations, and all local companies in Indonesia must
comply. Although your company may not yet have business activities
or tax liability, you are required to report a monthly tax statement to
the tax office.
cekindo.com

3. Understanding of Taxation
in Indonesia
It is compulsory that any PT PMA in Indonesia has to pay taxes and report
the company’s financial status regularly. Many of Indonesian taxes that
should be paid by PT PMA are similar to what stakeholders should pay in
different countries. Among them are monthly and annually withholding
taxes, monthly and annually income taxes, Value Added Tax (VAT), Luxury
Goods Sales Tax (LGST) - if any, along with the company investment plan.
Those taxes should be paid in the local tax office, where the company
office is located.
When a PT PMA has a domicile in the Indonesian territory, it will be treated
as Indonesian tax resident, so that the company has the obligation as a
resident taxpayer. The taxation regulation in Indonesia incorporates both a
self-assessment system and a withholding tax system.
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4. To know more about the Tax Law and regulations, Indonesian
government has issued:
• The General Provisions and Taxation Procedures Law No. 28 of 2007;
• The Income Tax Law No 36 of 2008;
• The Value Added VAT (termed ‘Goods and Services and Sales Tax on
Luxury Goods’) Law No 42 of 2009.
In order to fulfill the obligation to pay the tax, PT PMA can choose one
among these two options:
• Hiring an accountant to do all the reporting and payment of the tax.
• Finding a tax consultant to help the company dealing with the tax.
All the reports and tax document should be sent to the local tax office,
where your main head office is located (your registered address).
cekindo.com
Understanding of Taxation
in Indonesia

5. Taxation Schedule in Indonesia
Some taxes should be paid in a monthly basis and some others are
required to be filed annually. To give you broader pictures on Indonesian
taxation schedules, we give you a brief overview illustrated below.
The company’s taxes that should be reported monthly include:
• Corporate Income Tax,
• Employee Withholding Tax,
• Other Withholding Taxes,
• as well as VAT and LGST.
These taxes are usually paid before the 10th day of the following month for
the withholding taxes and before the 15th of the following month for the
Corporate Income Tax. The first three taxes must be filed or reported before
the 20th of the following month, whereas especially for VAT and LGST, they
have to be reported at the end of the following month.
cekindo.com

6. Taxation Schedule in Indonesia
On the other hand, taxes that should be paid annually include:
• Corporate Income Tax,
• Individual Income Tax,
• Land and Building Tax (for both the office and the factory or
warehouse - if any).
The deadline for the first two is before filing the tax return, and the
deadline for the last one is 6 months after receiving a tax notification
letter from the tax office.
All taxes should be paid regionally.
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7. Some warnings to consider
Tax Penalty
Being late in paying the company taxes and individual taxes in Indonesia
may result in financial penalty. The tax payer should pay an interest of 2%
per month for late payment. The maximum interest that should be paid by
the tax payers is 48%. Considering the big amount of extra money you
have to spend for the fine, it is always recommended to follow the
deadline strictly. Don’t be late, even for one business day, or it will be
calculated as one full month penalty.
Tax Audit
It is not an obligation for all companies to hold a financial audit by public
accountant. The regional tax office will not put any interest on your
company if you always provide complete data or documents during your
tax reporting period. It is also important to make sure that you never miss
any deadlines and follow all the rule and regulations applied by the
Indonesian taxation laws.
cekindo.com

8. Some warnings to consider
To deal with some disputes on tax-related issues, we can give you several
practical recommendations as follow:
1. Always keep in mind that you must pay your taxes on time on regular
basis. Once your company is registered, you have the obligation to
report your tax recurrently. Don’t miss the deadline, and never try to
cheat on the bureaucracy, which means that all the documents
needed in the tax reporting should be submitted.
2. Hire local accountants who know the local bureaucracy well.
Otherwise, you can invite a third party to handle your taxation
matters. Choose a qualified consultancy agency to help you dealing
with the Indonesian taxation system. We are keen to help you with
this issue.
cekindo.com

9. Some warnings to consider
3. Be updated with any changing in Indonesian laws and
regulations. It is better to have a partner to inform you with any
updates. We are always open to be your tax consultant.
4. When your revenue increases dramatically, we strongly
recommend you to open a different PT PMA so that you don’t
need to pay huge amount of money only for your company
taxes. To know how to do that, contact our support team to
discuss about it further.
cekindo.com

10. Accounting and Tax Reporting
in Indonesia
To help you to comply with these rules, Cekindo provides complete
accounting and tax reporting services, including individual and
corporate tax in Indonesia.
Our services are performed in a professional and efficient
manner by experienced accountants and tax specialists who
have local knowledge, ensuring tailored solutions based on your
individual requirements in accordance with Standard Operating
Procedures. By outsourcing your accounting and tax obligations,
you will reduce your operating costs and administrative burden while
increasing your business flexibility and growth.
cekindo.com

11. ACCOUNTING SERVICES
• General ledger
• Balance sheet
• Income statement
• Cash Flow
• Monthly tax report (withholding tax and VAT)
• Annual tax report
• Processing payments
• Issue invoices
TAX REPORTING SERVICES
• Individual Tax
• Corporate Tax
AUDITING SERVICES
• Audit procedures
• Scope of audit services
• Paper checks
• Legalization by Public Accounting Firm
• External audit report
cekindo.com
Cekindo Services
Include The Following:

12. PT. Cekindo Bisnis Grup
Menara BCA Grand Indonesia 50th fl
Jl. MH. Thamrin No. 1
Jakarta Pusat 10310, Indonesia
info@cekindo.com/ +6221 580 6889
cekindo.com
Why Cekindo?
PT. Cekindo Bisnis Grup is a market entry consulting firm in
Central Jakarta, providing one-stop services to assist foreign
companies from various industries in expanding to Indonesia
and beyond
Our main services, include Business Set Up, Business
Process Outsourcing, and Local Representation; more info
on www.cekindo.com
Our dynamic multinational team based in Jakarta to
understand the local market and utilize our extensive network
to support our client’s business and operation in Indonesia

13. PT. Cekindo Bisnis Grup
Menara BCA Grand Indonesia 50th fl
Jl. MH. Thamrin No. 1
Jakarta Pusat 10310, Indonesia
info@cekindo.com/ +6221 580 6889
cekindo.com
Contact Us