Keeping control of accounting and reporting obligations at home and overseas is a stretch for any international business. That’s why a growing number of clients outsource those obligations to us.
Tax Panning & Advisory | Business Tax Advisory, Structuring and Planning | Tax Compliance Service | Transfer Pricing | Expatriate Tax | Customs Duty | Tax Health Check | Tax Dispute Resolution | Tax Due Diligence | Personal Tax Compliance
Tax advisory & planning services in Indonesia. Whether you are planning to optimize your taxes in Indonesia or going to expand internationally, what you need is a tax planning strategy.
Reduce your taxes & boost business profitability.
Let us help you minimize your tax liabilities in Indonesia by optimizing the current system, which includes eliminating the risk of double taxation, identifying and mitigating tax inefficiencies and leaks, tax health checks and so on.
We can help you get back any money you may have been unintentionally paying to the government by putting to good use the cash repatriation, tax concessions and incentives systems.
Our tax experts can help businesses who are planning to expand to other markets in Asia or making significant transactions by providing them with guidance on how to execute the actions tax-efficiently.
If your business is related in importing or exporting products, we can provide you with a transfer pricing guide. This report will help you identify transfer pricing rules and the direction of pricing your goods and services, and also a comparison of other transactions made in the market.
When a company opens a bank account, the bank will require the company to make a statement as to the company’s status under either CRS or FATCA. A CRS statement will be required from any entity whose beneficial owners are no U.S. citizens. A FATCA statement will be required where any beneficial owners are U.S. citizens. The classification process is far from straightforward, with the bank’s how-to guides stretching to 20 pages or more. An Visi Capital Indonesia professional can assist with the correct classification for your company.
To prepare for personal tax return, we will help determine your allowances and tax exemptions, and ensure your tax returns are the most profitable. This includes:
Common questions.
What taxes are applicable in Indonesia?
Central government taxes
In general, 22% for 2020 and 2021, and 20% starting from 2022. Certain taxpayer may be entitled for reduction of the tax rate and certain business activities may subject to final income tax with specific tax rates.
WHT rate will vary from 0.5% to 20% depending on the nature of transaction and applicable income tax article on such transaction.
This depends on the type of income and provisions on the applicable tax treaty between Indonesia and the counter party’s jurisdiction. In general, business profit income shall not be taxed in Indonesia as long as the overseas party does not have a Permanent Establishment in Indonesia.
The VAT rate is 10%. For export, it can be 0%.
Yes, Indonesia has a VAT refund mechanism.
Taxes and duties involve on importation are Art. 22 income tax, VAT and sales tax on luxurious goods and import duty.
Business Tax advisory, structuring, and planning services in Indonesia
Our tax professionals who have accumulated experience of more than 18 years in international tax and business tax consulting, can help manage your tax risks and recommend you with the most optimal arrangement from an Indonesian tax perspective. Our balanced mix of tax and business knowledge could help you in optimising your bottom-line profit margin.
Tax compliance services in Indonesia. Fulfil all your tax obligations with our services. We have years of experience working with the Directorate General of Taxes and will deliver your tax filings punctually, report correctly on your assessable income and reduce tax liability.
We will help you avoid any penalties or late payments by filing your taxes correctly and on time.
Our professional tax teams are up to date with any changes in local or regional tax regulations.
We offer strategic guidance about tax-related topics, including decreasing the risk of double taxation, optimizing your tax spending and tax incentive systems.
We will assist in obtaining:
We will assist in handling your monthly tax payment and reporting, which includes:
We will assist in preparing your annual corporate income tax return (CITR), and make sure that all fiscal adjustments are done correctly and help you to submit the CITR to the tax office in a timely manner.
Changes in taxpayer details
We will assist in centralizing your VAT obligation. By doing this, your headquarters and branch offices will be able to perform its VAT obligation under one report/submission.
If your business is related in importing or exporting products, we can provide you with a transfer pricing guide.
This report will help you identify transfer pricing rules and the direction of pricing your goods and services, and also a comparison of other transactions made in the market.
When it comes to Transfer Pricing, a strong global network will ensure that all solutions are delivered with a multi-jurisdiction mindset – a balancing act on taking into consideration the interests of the tax authorities in jurisdictions involved in your cross-border transactions. This places Visi Capital Indonesia in a position to provide Transfer Pricing support to you wherever your business takes you.
Our experienced global team comes from a diverse range of technical and professional backgrounds. The team has technical Transfer Pricing expertise in tax, law, economics, finance and has developed this expertise in a range of professional settings that include professional services, industry and revenue authorities around the world. This strength and diversity of knowledge creates an environment where our team is able to bring fresh thinking and a varied perspective to every transfer pricing project enabling us to deliver creative, robust Transfer Pricing solutions.
Your Concerns
Businesses with cross border related party transactions must be able to provide Transfer Pricing documentation to tax authorities that demonstrates and supports the arm’s length nature of relevant cross border transactions. Visi Capital Indonesia’s global transfer pricing expertise are ready to assist you in developing Transfer Pricing documentation that complies with local requirements.
Our transfer pricing documentation service would assist you with the preparation of formal transfer pricing documentation that reflects the current year’s financial and business performance. If your financial performance for a particular year is below the industry average or in a declining trend, you may want to consider undertaking Special Factor Analysis (“SFA”). The objective of this exercise is to prove that the poor/declining financial result does not necessarily mean it is a result of transfer pricing practices.
We have a dedicated team of transfer pricing specialists who have vast knowledge in various industry segments, including: manufacturing and distribution of consumer products (fast moving consumer goods and consumer electronics), plantation (palm oil), energy (e.g., geothermal, oil and gas), utilities and mining (e.g., coal, copper, gold and nickel), hospitality, chemicals.
Your Concerns
Local avenue:
Assistance with transfer pricing audit, filing tax objection and filing tax appeal to the tax court.
International avenue:
Assistance with Mutual Agreement Procedure for transaction with a tax treaty country.
Get legal certainty for future related party transactions through planning and/or Advance Pricing Agreement (“APA”).
Tax authorities are increasingly challenging the pricing of related party transactions. VCI Indonesia’s Transfer Pricing professionals can help you in navigating your company through any such disputes. In the event of an audit or tax authority enquiry, we can help you develop a defensive strategy based on relevant local and international legislation, guidance and practice.
Our experienced team is able to communicate and negotiate with tax authorities on your behalf and, where there has been a transfer pricing adjustment, we will successfully guide you through the Mutual Agreement Procedure under relevant tax treaties to avoid double taxation or to negotiate APAs.
Your Concerns
Businesses frequently look to change their business model to drive customer and shareholder value. Whether setting up in new markets, introducing central procurement, moving production to lower cost countries, relocating senior management or integrating acquisitions, we can help you to manage resulting transfer pricing risks and the group’s tax position in a sustainable way.
Some other key areas we typically look at in delivering our transfer pricing advisory and planning services are:
Our experienced global team comes from a diverse range of technical and professional backgrounds. The team has technical transfer pricing expertise in tax, law, economics, finance and has developed this expertise in a range of professional settings that include professional services, industry and revenue authorities around the world. This strength and diversity of knowledge creates an environment where our team is able to bring fresh thinking and a varied perspective to every transfer pricing project enabling us to deliver creative, robust transfer pricing solutions.
Your Concerns
Human Capital is recognised to be the most important asset in any business. Our Expatriate Tax Team is ready to assist you and your employees with the various issues arising from the overseas assignment.
Your Concerns
With increasing volume of imports and exports and greater scrutiny of cross border flows in today’s global economy, it poses a significant challenge to business supply chains because the international movement of goods is more costly. Companies with global presence need to ensure compliance while managing international trade costs in order to stay competitive and profitable in the industry. Our dedicated team of customs specialists is ready to assist you in developing and implementing strategies to manage import duty costs by utilising free trade agreements, customs tax concessions, and international trade structuring.
Your Concerns
Our experience in handling various tax audit cases will help you identify the type of risks that lie ahead of you and advise you on the additional documents to put on file based on what we’ve learnt from assisting various businesses.
Your need calls for tax health check that will help you:
Your Concerns
As tax audits (or tax objection and tax appeal) can be fact-intensive, our dedicated tax dispute resolution team will guide you in providing critical facts of your business/industry and ensuring discussions with the authorities are still conducted in consideration of the Indonesian tax technical aspects for your specific case. We aim to formulate a more structured defences strategy and ensure its implementation is in line with your business objectives and values.
Our assistance with tax dispute resolution can help you to resolve your tax affairs by:
Your Concerns
Through strategic collaboration with you, we aim to combine your business aspiration with our tax expertise in formulating solutions that will align with the circumstances at hand. Our credentials in merger and acquisition (“M&A”) projects in various industry sectors would also be of value to your business objectives.
Our tax due diligence service could assist in the following areas:
Advise you of the most optimal (and viable) investment structures and exit strategies to optimise your return on investment.
Personal income tax matters
