This post is also available in: Indonesia (Indonesian) 简体中文 (Chinese (Simplified))
You Don’t Have to Worry About Your Tax Compliance With a Reliable Team on Your Side
Need help with your tax compliance? 3E Accounting has the perfect solution. Our Corporate Tax Compliance Services in Indonesia are here to cater to your needs.
What Is Tax Compliance in Indonesia All About?
Indonesia is a promising country, but it’s tax compliance situation still has its challenges. Tax revenue in the country accounts for 12% of its GDP. However, approximately 40 million people are still not complying with their tax obligations.
Indonesia has one of the lowest structures of corporate and personal taxes. Yet, tax compliance still isn’t where it should be, much to the Government’s chagrin. In Indonesia, voluntary compliance is rare indeed. To overcome their challenges, Indonesia must address the tax evasion and corruption problem.
The standard rate of corporate taxes in Indonesia is 25%. Individuals in Indonesia can expect to pay any of the following:
- Less than IDR 50 million income (5%)
- Between IDR 50 and 250 million income (15%)
- Between IDR 250-500 million income (25%)
If your earnings exceed IDR 500 million, you pay a flat rate of 30% in taxes. The VAT tax rate in Indonesia is 10% while taxes on luxury goods (LGST) is anywhere from 10% to 125%. The maximum LGST taxes is 200%.
How to Meet Your Tax Compliance
Our Corporate Tax Compliance Services in Indonesia make it easy to fulfil your responsibilities. Individuals would pay their taxes through their employers, having a portion of their salary deducted. For businesses, our compliance package is the easiest solution to opt for. We save you the hassle of trying to do it yourself by letting our team of experts handle your financial affairs.
A company must file their taxes with the Indonesian tax office (ITO). Taxes are filed either on a monthly or annual basis. The taxes that must be filed are:
- Income tax returns
- Employee payroll taxes
- Withholding tax returns
- VAT returns
Need Assistance? 3E Accounting Can Help
Why worry about letting your tax responsibilities slip through the cracks? Fulfil your responsibilities on time every time with our Corporate Tax Compliance Services in Indonesia. For more information, contact our team today. We’re always here to help.