Corporate Income Tax (CIT) Consultant for Jawa Timur Industrial Areas & Strategic Solutions in the Coretax Era
Jawa Timur has emerged as one of Indonesia’s fastest-growing industrial hubs, hosting manufacturing, logistics, and export-oriented companies across multiple industrial estates.
With the implementation of the Coretax System by the Directorate General of Taxes (DGT), corporate tax compliance in these industrial areas is now subject to real-time data validation and automated risk detection. Even minor inconsistencies in Corporate Income Tax (CIT / PPh Badan) reporting may trigger system-based clarifications.
TGS AU Partners provides integrated tax and audit solutions to help companies operating in Central Java Industrial Areas maintain accurate, consistent, and defensible tax reporting.
Integrated Corporate Income Tax (CIT) Services for Industrial Companies
1. Corporate Income Tax Preparation & Review
- Fiscal reconciliation in accordance with the latest Indonesian tax regulations
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- Preparation and filing of Annual Corporate Income Tax Returns (CIT / SPT Tahunan
- Preparation of Transfer Pricing Documentation for affiliated transactions
- Early identification of tax risks before detection by the Coretax system
2. Corporate Tax Advisory & Assistance
- Legal tax planning to improve tax efficiency for industrial operations
- Assistance with tax clarification requests (SP2DK) and communication with the DGT
- Tax audit preparation and audit assistance
3. Audit & Financial Statement Integration
As an integrated Public Accounting Firm (KAP), we ensure alignment between commercial financial statements and tax reporting, reducing the risk of significant discrepancies—particularly for high-volume industrial transactions.
Industry-Focused Tax Expertise
Companies operating in Central Java Industrial Areas face sector-specific tax challenges. We bring deep experience across key industries:
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- Manufacturing: VAT management, cost of goods sold (COGS), asset capitalization, and depreciation of production machinery.
- Logistics & Distribution: Application of Article 15 and Article 23 Income Tax, cross-warehouse transactions, and supply chain efficiency.
- Trading & Export-Oriented Businesses: Inventory management, high-volume sales transactions, and VAT–CIT reconciliation.
- Technology & Industrial Services: Tax treatment of intangible assets, licensing, management services, and digital transactions.
FAQ – Corporate Income Tax (CIT) & Coretax for Industrial Companies
Q: How does Coretax affect companies operating in industrial areas? A: Coretax performs automated, real-time validation of tax data. Industrial companies with complex transactions and large data volumes are more exposed to detection of inconsistencies between VAT, CIT, and other tax reports.
Q: Why do industrial companies require specialized Corporate Income Tax handling? A: Industrial operations involve specific costs—such as raw materials, production overhead, depreciation, and logistics expenses—that are frequently subject to fiscal corrections. Proper classification and documentation are critical to ensure deductibility.
Q: Can TGS AU Partners assist if our company has received an SP2DK? A: Yes. We analyze the DGT’s clarification points, prepare professional responses, and assist discussions with your assigned Account Representative (AR) to mitigate potential tax exposure.
Q: What are the main risks of inaccurate Corporate Income Tax reporting for industrial companies? A: Risks include administrative sanctions such as interest penalties (aligned with market interest rates under the Tax Harmonization Law), tax underpayment penalties, and comprehensive tax audits triggered by unexplained discrepancies—especially between VAT turnover and Corporate Income Tax figures.
Q: How should industrial companies manage affiliated or related-party transactions? A: All affiliated transactions must follow the arm’s length principle. Pricing, margins, and fees should reflect market conditions. Companies must prepare Transfer Pricing Documentation to support these transactions.
TGS AU Partners has extensive experience in transfer pricing documentation and advisory services to help reduce tax risks.
Q: What are the risks related to non-deductible expenses in industrial operations? A: Expenses such as donations, employee recreation costs, or costs without sufficient supporting documentation (Nominal Lists) are non-deductible. Improper claims often result in audit findings, tax underpayment, and penalties.
Q: What are the tax risks related to cross-border transactions and foreign vendors? A: Payments for licenses, management services, or royalties to overseas entities are subject to Article 26 Income Tax withholding. Without a valid Certificate of Domicile (DGT Form), companies may be subject to the maximum 20% withholding rate and potential treaty non-compliance issues.
About TGS AU Partners
TGS AU Partners is an integrated group of Public Accounting Firms and Tax Consultants, focusing on compliance solutions for industrial, manufacturing, and corporate businesses in Indonesia.
As part of the TGS Global network, we combine international professional standards with strong local regulatory expertise to support sustainable and compliant business operations.
Contact Us for a Professional Discussion
If you are looking for professional accounting and tax services in Jawa Timur, TGS AU Partners is ready to support your business.
- Email: info@au-partners.com
- Phone: (+62) 21-8298265
- WhatsApp: +62 812-1405-6672
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