VDB LoiUpdates & Analysis


Indonesia
10
Oct
2017
Tax Structuring Considerations – Indonesia
Despite the increased focus across the globe on tax issues in recent years, many companies still fail to consider the full impact of tax regulations and procedures when entering into a new investment or transaction. Tax planning does not need to mean devising intricate structures with fancy names. It can be as simple as ensuring […]
10
Oct
2017
Indonesia Tax 101
Information purposes only, October 2017 Self-assessment regime but rigorous tax audit process The tax system in Indonesia operates on a self-assessment basis, however a rigorous and often punitive tax audit and verification process is followed. The main tax laws are supplemented by a complex and ever-changing raft of implementing regulations. Worldwide income, no grouping. Note […]
9
Aug
2017
Controlled Foreign Companies – Significant Changes
Indonesian tax residents with controlling holdings in overseas entities should ensure that they fully consider the impact of recent changes. Many will find that they face a significant increase in taxable income THIS YEAR. The changes referred to are brought about by MoF regulation 107/PMK.03/2017, Indonesia’s new CFC legislation, which states that any profits made by […]
10
Jul
2017
Significant changes to procedures necessary to apply DTA benefits
To obtain the benefits from a tax treaty (DTA) between Indonesia and a DTA partner country, certain administrative requirements must be fulfilled. From 1 August 2017, these requirements will change significantly and all persons who enter into cross border transactions involving Indonesia and a DTA partner country should be aware of the impact.
9
Jan
2017
Does your business transact with related parties?
Does your Indonesian entity meet any of the below criteria? Yes No REVENUES IDR 50bn (US$3.7m)     VALUE OF GOODS TRANSFERRED IDR 20bn (US$1.4m)     VALUE OF OTHER TRANSACTIONS (Interest, Royalties, Services, etc.) IDR 5bn (US$370k)     TAX RATE OF OVERSEAS COUNTER PARTY <25%       If you answered YES to […]
9
Dec
2016
Navigating a Complex Web
Dealing with issues arising from the Indonesian tax amnesty has led to some questions on the veracity of the concept underlying this quote: dishonesty leads to more and more complexity as one covers tracks and actions and eventually the ‘perpetrator’ is caught in some way – either by enforcement of some form of justice, or by getting so entangled in the whole deception that normal life is impossible.
10
Oct
2016
Tax Amnesty – Assistance
Tax Amnesty – What Next? We are now into the second phase of the tax amnesty. Ultimately the first phase was successful with a rush of submissions in the final weeks. Many taxpayers may have missed out, unable to arrange their documentation or calculations in time. Many SMEs may still be considering applications as they […]
9
Jul
2016
Tax Amnesty – Key Considerations and Action Points
The ‘Carrot’ and the ‘Stick’ At the end of last month, we provided comment on the passing of the Tax Amnesty Bill and highlighted that the Bill itself left many questions unanswered. The full text of our previous commentary is set out below. The implementing regulations will go some way towards addressing these but many issues […]
9
Jun
2016
The Tax Amnesty Bill has finally been passed……….. are you prepared?
The truthful answer to that is probably no. There are too many uncertainties regarding how this will be implemented for many who are in the position to take advantage to do so. Setting aside, if we may, the moral arguments for and against this long-awaited bill, the fact is that it is now upon us […]
20
Aug
2015
New services subject to 2% withholding tax in Indonesia
A new regulation1 issued in July seeks to clarify and expand the tax base with regard to services subject to withholding tax at 2% under Article 23 of the Income Tax Law.Taxpayers should be aware of how the changes may impact them, particularly in cases where there has been dispute or doubt with regard to […]
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