Accounting & Tax Reporting

Indonesian taxes are not that high compared to some western countries, but the tax system is quite extensive and regularly subject to adjustments.

Most recent, the Indonesian government has responded to the COVID-19 situation, introducing several adjusted financial regulations, such as tax relaxation, premium reduction and loan restructuring.
For a comprehensive and up-to-date overview of the Indonesian tax system we can recommend the (online) tax guides of PwC or Deloitte.

As soon as your company is registered as a tax payer, the business becomes taxable.

Consequently you are required to fulfill your tax reporting obligations, even if there is no significant business activity yet.
In line with general business accounting principles, your company must prepare an annual balance sheet and a profit & loss statement.

Tax reports are filed at the district’s tax office where your company is registered.

Monthly tax reporting applies to:
  • Employee tax
  • Withholding taxes
  • Value added tax
Yearly tax reporting applies to:
  • Corporate income tax
  • Individual income tax
  • Real estate taxes

Based on your company’s legal entity, activity, size and location, we can refer you to a certified tax consultant or accountant who can carry out your tax reporting or your accounting process.