Indonesian Tax Compliance Services

Our tax team with their comprehensive experience in the area of taxation is the right choice for any business that is looking for any tax solution in Indonesia. Including tax reporting, transfer pricing, tax refunds, audits, and tax court.

Tax Service Scope

We help clients with our tax services in Indonesia including:

  • Monthly and annual income tax calculation and reporting
  • Value-added tax calculation and reporting
  • Preparation of transfer pricing documentation
  • Tax consultation on transactions
  • Tax planning
  • Tax audit assistance
  • Tax court process assistance
  • Obtaining tax facilities

Our Goals for Your Tax Compliance

Our objective for clients is the right tax reporting and sound tax advice to anticipate the business from tax audit and penalty.

A Few Important Things About Tax Compliance Requirements In Indonesia

  • Indonesian taxation uses the withholding tax system for income tax.
  • In most cases, the income paid to the income beneficiary shall be withheld from income tax. If a company makes any payment, the company must withhold the tax for that income.
  • In most cases, If a company receives payment from its customer, the customer also withholds tax which will become a tax credit for corporate income tax.
  • Withholding tax shall be deposited to the state and reported on a monthly basis.
  • A person or entity who receives the income shall be provided a withholding tax receipt by the taxpayer who pays the income.
  • For value-added tax, Indonesian taxation requires a “certain” taxpayer to charge VAT on the sales or transfer of goods and services.
  • For value-added tax compliance, the taxpayer is required to issue a tax invoice (use the system provided by the tax authority).
  • Timing of issuance of tax invoices is critical in tax compliance.
  • VAT payable is the difference between the VAT output (VAT charge to the customers) and the VAT input (paid to the third party, suppliers, service providers, etc).
  • Tax invoices and VAT credits are critical in value-added tax compliance.
  • Value-added tax penalty is the highest compared to the withholding tax penalty.
  • Filing a loss in corporate income tax will raise the probability of tax audit

What We Do to Help Companies to Comply with the Indonesian Tax Requirements

  • Analyze the tax on the transaction for expenditures
  • Withholding tax calculation including employee income tax, service income tax, rents or leases, etc
  • Review of transactions for VAT credit items
  • Tax invoice issuance assistance
  • Monthly income tax reporting article 21, 23, 4.2. (SPT PPh Pasal 21, 23/26, 4.2)
  • Monthly value-added tax reporting (SPT Masa PPN)
  • Assist with the payment of tax (in some cases we help to arrange the payment)
  • Monthly tax summary with memo if any certain things need to be paid attention to by the client.

Our Working Process for Indonesia Tax Compliance Service

  1. First, we start with a meeting to understand the company's business processes because each company has its own uniqueness. Thus, we can carry out the work smoothly.

  2. Transaction data and financial statements are provided by the client via email, google drive, or other data storage applications.

  3. On a regular basis, weekly, or once every two weeks. We review the list of payment transaction plans to third parties and advise the client of, the applicable tax rate before the transaction is made.

  4. The tax service team of TGS AU Partners performs tax analysis, calculation, and tax form filing from the data that the client has provided.

  5. You can access tax information online provided by TGS AU Partners.

  6. The TGS AU Partners team will send a tax calculation report every month for tax payment and tax return reporting according to the scheduled date.

  7. Withholding tax receipts for third parties are also provided.

  8. Monthly periodic reports are sent to the company along with a note of our advice regarding tax if there are things that need the company's attention.

Tax Compliance Services Deliverables

Our Indonesian tax compliance service deliverables include the following items:

  1. Calculation of tax (withholding tax) on expenditure transactions

  2. Filing of Income Tax Return Article 21, 23/26, 4.2 monthly

  3. Calculation of VAT credit and VAT payables

  4. Monthly VAT Return Filing

  5. Annual Corporate Income Tax Calculation

  6. Annual corporate income tax return report

Other Jurisdiction Tax Compliance Services

With TGS Network, we are able to provide you with a single contact for your international business operations. TGS firm offices presence in more than 70 countries. We offer you high-quality service delivery with comprehensive solutions that are cost-efficient.

Independent Advice for Client's Interest

Our guarantee for tax services is timely delivery, deep knowledge of tax regulations that provide objective advice and responsiveness to each client's needs.

Our Tax Clients

Our clients include multinational companies, state-owned enterprises, national private companies, both private and public companies, including individuals.

TGS AU Partners Tax Service Team

Our tax team consists of tax consultants, tax attorneys, and senior tax practitioners who are active in both national and international tax communities, including local tax authorities, the International Fiscal Association, and the TGS Global Tax Committee. Our regular tax seminar and training help to shape our tax know-how. Through the variety of works and activities, we have access to information and best practices for taxation which will certainly help in every tax work, especially international tax consulting and litigation.