Tax & Accounting
CST Tax Advisors
If you are looking for expert tax advice and accounting services in Jakarta, look no further than CST Tax Advisors.
Their strong global network, highly professional team of Chartered Accountants and expertise in cross-border tax affairs will prove invaluable to you whether you’re a business or an international client.
CST Tax Advisors assists expats in:
- Professional accounting
- Personal and business tax
- Cross-border taxation advice
Tax & Accounting for Expats in Jakarta
Jakarta offers a very favourable tax regime for both businesses and individuals. With low living costs and compelling business opportunities, in addition to its pristine beaches, gorgeous nature, rich culture and the reputation of a fabulous lifestyle, it’s no wonder that Jakarta is such an attractive destination for expats.
Key Tax & Accounting tips you should know as an expat in Jakarta
- As an expat, you will be considered a tax resident in Jakarta if you are present in Indonesia for 183 days or more in any 12-month period, or present in Indonesia in the fiscal year and intends to reside in Indonesia.
- In order to file a tax return, you must register as a taxpayer and obtain a tax identification number.
- While your employer is responsible to deduct tax from your salary, it is your responsibility to register as a taxpayer and file your tax returns.
- Your personal income tax (PIT) in Indonesia is determined through a self-assessment scheme.
- As a tax resident, you are required to pay tax on the income you earned in Indonesia, and abroad unless there is an applicable double taxation agreement.
- Indonesia has a progressive tax rate. As a tax resident, the tax you will pay may range from 5 to 30%, depending on your income.
- Non-residents are subject to a flat tax of 20% on gross income.
- It’s best to seek the services of a trusted tax advisor to better understand your tax liabilities as an expat and comply with the local tax regulations.
Tax & Accounting for expats establishing a business in Jakarta
- The Indonesian tax year for businesses runs from 1 January to 31 December. If a company’s accounting year is different from the tax year, its tax return period must be based on the accounting year.
- Your company in Indonesia is liable for corporate income tax on its worldwide income.
- Many expats moving to Indonesia choose the perseroan terbatas (PT) structure while setting us a business. PT is typically the same as a limited liability company.
- It’s mandatory that at least one of the board of directors of your business in Indonesia holds an Indonesian tax card.
- Due to complicated bureaucracy and procedures, most expats choose to use a professional tax agent while registering a company in Indonesia. Generally, registration takes around two months to complete and requires a lot of paperwork.
- The corporate tax rate is 25% – however different rates may apply depending on your revenue. As the tax rates change periodically, it is best to check the tax rate that will apply for your business with (what is the tax body in Indonesia eg. in Australia it’s the ATO, Singapore IRAS)
- Your company is required to file monthly tax returns and make payments based on one-twelfth of the previous year’s tax bill. The payment deadline is the 15th day of the following month, and the return must be submitted by the 20th day of the month.
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