Need Assistance with Your Taxes? 3E Accounting Is Here to Help
Withholding tax in Indonesia is how income taxes are collected. 3E Accounting provides Withholding Tax Services in Indonesia that cater to your corporate needs.
What Is Withholding Taxes?
Withholding taxes in Indonesia are the responsibility of the party who is paying. In this case, the payer must withhold or collect the taxes involved. Taxes are applicable to both individuals and corporations. They are levied on a range of payments.
Resident corporations can expect to pay 15% in taxes while individuals pay 10%. If your company has a gross turnover that is less than IDR 50 million, you are eligible for a 50% reduction in your corporate tax rate. 3E Accounting’s Withholding Tax Services in Indonesia can handle the calculations for you.
If your company is a resident of Indonesia, you will be taxed based on the income you earn worldwide (if any).
Who Need to Pay Withholding Taxes?
If you are a foreigner with a resident business in Indonesia, you will need to comply with the same tax obligations as the locals. Whether you are a resident of Indonesia or not, withholding taxes will apply to you. You may also be eligible for reductions depending on certain tax treaties.
Calculating and determining the amount of taxes you must pay can be tricky. It is highly recommended that you seek the counsel of professional tax services like 3E Accounting for guidance. This ensures that minimal mistakes are made in the long run. You also avoid the risk of incurring penalties for mistakes that get made.
What Is Taxed?
Taxes are collected based on:
- Any goods sold to the government
- Imported goods
- Any purchasing or sale of certain products
- Any purchase or sale of luxury goods
- Payment incurred for certain services
Value Added Tax (VAT) is applicable for any delivery of goods and services in the Indonesian Customs Area. The VAT rate is 10%. It could be increased to 15% or decreased to 5% depending on government regulations.
Fulfilling your tax obligations in Indonesia can be a headache. Why not let 3E Accounting manage it for you? Our affordable Withholding Tax Services in Indonesia make it easy to fulfil your obligations without breaking the bank. For more information on our services, contact our friendly team members today.