Below is a list with tagged columns and company profiles.

Today's Headlines Tax

  • Indonesia Plans to Adjust Non-Taxable Income to Local Minimum Wage

    Indonesia Plans to Adjust Non-Taxable Income to Local Minimum Wage

    Indonesia's tax authorities are planning to revise the non-taxable income regulation again in an attempt to improve the nation's low tax ratio. Last year the government of Indonesia raised non-taxable income by 50 percent from IDR 36 million (approx. USD $2,700) to IDR 54 million (approx. USD $4,060), per year, in a bid to strengthen people's purchasing power and encourage household consumption. However, considering local minimum wages vary across the country's 34 provinces, the nation-wide non-taxable income level of IDR 54 million causes some problems.

    Read more ›

  • Indonesia & Hong Kong to Share Taxpayers' Bank Account Data

    Indonesia & Hong Kong to Share Taxpayers' Bank Account Data

    In its "war on tax evasion" Indonesia scored another victory by reaching an agreement ("Bilateral Competent Authority Agreement") with Hong Kong to share data of Indonesian taxpayers who hold accounts in the Asian wealth management hub. Indonesia's Tax Office assumes (or better: knows) there are plenty of wealthy Indonesians who take advantage of the low tax regime in Hong Kong and deliberately do not report these funds to Indonesian authorities.

    Read more ›

  • Finding a Realistic Tax to GDP Ratio for Indonesia's 2018 Budget

    Finding a Realistic Tax to GDP Ratio for Indonesia's 2018 Budget

    According to Ken Dwijugiasteadi, Taxation Director General at Indonesia's Finance Ministry, a tax-to-GDP ratio at 11 percent would be realistic for Indonesia's 2018 state budget (but would still require big efforts from the government). In a plenary session of Indonesia's House of Representatives (DPR) earlier this week, regarding the 2018 state budget proposals, some called for a sharp increase in the tax-to-GDP ratio to 13 percent. However, considering the expected tax revenue growth, this ratio would be highly unrealistic.

    Read more ›

  • What is the Impact of Trump's Corporate Tax Reforms on Indonesia?

    What is the Impact of Trump's Corporate Tax Reforms on Indonesia?

    The economies of Indonesia and other countries in Southeast Asia may feel the impact of US President Donald Trump's impending tax reforms. Currently markets are focused on these reforms. On Wednesday (26/04) Trump is set to propose steep cuts in US corporate taxes (from 35 percent to 15 percent) and the tax rate on offshore earnings that are repatriated (from 35 percent to 10 percent), while individual taxes will be simplified. These proposals will require US Congress approval before implementation.

    Read more ›

  • Property Sector of Indonesia Subdued, Tax Amnesty to Impact?

    Property Sector of Indonesia Subdued, Tax Amnesty to Impact?

    After the ending of Indonesia's tax amnesty program, property players in Southeast Asia's largest economy remain optimistic that inflows of fresh funds - originating from the tax amnesty program - will give a boost to Indonesian property sector in the second half of 2017. This should then cause some momentum, meaning property developers dare to kick-start new projects. Considering weak demand for property in Indonesia over the past couple of years, many local property developers have been postponing projects.

    Read more ›

  • Tax Buoyancy Indonesia: GDP Growth & Tax Revenue are Asynchronous

    Tax Buoyancy Indonesia: GDP Growth & Tax Revenue are Asynchronous

    There is concern about Indonesia's tax buoyancy. Tax buoyancy is the indicator that measures efficiency and responsiveness of revenue mobilization in response to growth in gross domestic product (GDP) or national income. While, Indonesia's GDP accelerated 5.02 percent (y/y) in 2016, the country's tax revenue realization only rose 4.2 percent (y/y) to IDR 1,104.9 trillion (approx. USD $83.1 billion). Since 2011 (when commodity prices plunged heavily) tax buoyancy has been weakening in Indonesia.

    Read more ›

  • What is Indonesia's Progressive Tax on Idle Land Ownership?

    What is Indonesia's Progressive Tax on Idle Land Ownership?

    Sofyan Djalil, Indonesian Minister of Agrarian Affairs and Spatial Planning, says the progressive tax on land that is deemed idle will not disturb the investment climate of Indonesia because industrial estates and land that has a clear development purpose are exempted from this tax (this includes land destined for property development projects). Through the progressive land tax the government wants to combat speculative land buying, something that has become a problematic phenomenon in Indonesia.

    Read more ›

  • Tax Revenue Target Indonesia 2017: Government Eyes 16.8% Growth

    Tax Revenue Target Indonesia 2017: Government Eyes 16.8% Growth

    The government of Indonesia is confident that it will collect IDR 1,498.9 trillion (approx. USD $112.7 billion) in tax revenue in 2017, up 16.8 percent from tax revenue realization of IDR 1,283.6 trillion in 2016. Meanwhile, in its latest Indonesia Economic Quarterly, released earlier this week, the World Bank stated that the 2017 State Budget of Indonesia is a more realistic one (compared to tax revenue targets in recent years). However, it emphasized further tax administration and policy reforms are required to meet the new target and to further improve fiscal policy credibility.

    Read more ›

  • Google & Indonesia Fail to Reach Tax Agreement in 2016

    Google & Indonesia Fail to Reach Tax Agreement in 2016

    US multinational technology company Google failed to reach a tax settlement with Indonesia's Tax Office in 2016 and therefore directors of Google Indonesia could risk a prison visit. In September 2016 Muhammad Hanif, Head of the Tax Office's Special Cases Department, said Google could face claims for five years of back taxes, including a bill of more than USD $418 million for full-year 2015 as the company is estimated to have paid less than 0.1 percent of the total income and value-added taxes it owed Indonesia in 2015. In Indonesia, Google generates income from online advertisement.

    Read more ›

  • 2nd Phase Indonesia's Tax Amnesty Program Ended, What's the Score?

    2nd Phase Indonesia's Tax Amnesty Program Ended, What's the Score?

    The second phase of Indonesia's tax amnesty program ended on 31 December 2016 and therefore it is interesting to take a look at the results during this phase. In short, results are mixed. We had already reported that in terms of asset declarations, the initial target of the program was already achieved a couple of weeks ago. However, in terms of asset repatriations (into Indonesia), the program has disappointed so far, and, unless the government will introduce new policies or incentives, will not achieve the target.

    Read more ›

Latest Columns Tax

  • How to Arrange Your Electronic Filing (EFIN) to File Online Tax Reports in Indonesia?

    How to Activate Your Electronic Filing (EFIN) to File Online Tax Reports in Indonesia?

    More and more processes are being shifted online as this, generally, allows processes to become more efficient and easier to complete. This also applies to Indonesia's tax office. Over the past couple of years, tax can be filed online by legal entities and individuals. However, before an individual of company can file the tax online, he - or it - first needs to obtain an Electronic Filing Identification Number (EFIN).

    Read more ›

  • Interview with SSEK Indonesian Legal Consultants: Some Insights on Indonesia’s Tax System

    Interview with SSEK Indonesian Legal Consultants: Insights on Indonesia’s Tax System

    Tax is not everybody’s favourite topic of conversation. Nonetheless, it is a crucial subject both for the legal entity and the individual as various taxes need to be filed to authorities. Trying to escape from paying (higher) taxes is a risky affair and can lead to serious sanctions. Similarly, innocent mistakes can also cause problems with tax officials and therefore is it advised to invest some time in understanding the tax system. This advice particularly applies to those who move to different jurisdictions – to work and/or live - as tax regulations may not be the same as the regulations in their home country.

    Read more ›

  • Tax Reforms & Incentives: Adjusting Tax Rates to Strengthen the Indonesian Economy

    Tax Reforms & Incentives: Adjusting Tax Rates to Strengthen the Indonesian Economy

    While reforms related to Indonesia’s corporate income tax rates remain in the planning stage, there is a new important regulation that will come into effect per 1 April 2019. Through Finance Ministry Regulation No. 210/PMK.010/2018 on the Taxation of Trade Transactions through Electronic System or E-commerce, which was signed on 31 December 2018, Indonesia will require e-commerce merchants (sellers) to share data with tax authorities and pay VAT and income taxes.

    Read more ›

  • Investment in Indonesia: Investors Await Tax Incentives & Tax Holiday

    Investment in Indonesia: Investors Await Tax Incentives & Tax Holiday

    Investors are awaiting a series of fiscal incentives from the Indonesian government, including a new tax holiday. Meanwhile, investors also urge the government to improve the investment and business climate by simplifying the process and procedures to obtain permits for investment projects. This also includes improving the coordination between central and regional authorities, for example through the integration of the permitting process at both levels.

    Read more ›

  • Looking Back at 2017: Success & Failure of State Budget Targets

    Looking Back at 2017: Success & Failure of State Budget Targets

    Although realization of most components in Indonesia's state budget have improved in 2017, tax revenue realization and the management of energy subsidies remain the two big challenges for the Indonesian government. Southeast Asia's largest economy again failed to meet its tax revenue target last year. Per 31 December 2017 it collected IDR 1,151.5 trillion (approx. USD $85.3 billion) in tax revenue, only 89.74 percent of the target (excluding customs and excise).

    Read more ›

  • Tax Revenue Indonesia: Another Tax Shortfall Expected in 2018

    Tax Revenue Indonesia: Another Tax Shortfall Expected in 2018

    Indonesia may see a IDR 120 trillion (approx. USD $8.8 billion) tax shortfall in 2017. The Indonesian government set a IDR 1,472.7 trillion (approx. USD $109 billion) tax revenue target (including customs and duties) in full-year 2017. However, up to 15 December only IDR 1,211.5 trillion has been collected. Traditionally Indonesia delivers a tax shortfall at the end of the year. This is expected to continue in 2018.

    Read more ›

  • Government to Revise Indonesia's Tobacco Excise Tax Policy

    Government to Revise Indonesia's Tobacco Excise Tax Policy

    Every year Indonesia's Tax Office adjusts the excise tax on tobacco products. The adjustment is always made in consideration of the central government's tax revenue targets as well as the input of specific stakeholders (including pro-health lobby groups, or groups that defend the interests of tobacco manufacturers or farmers).

    Read more ›

  • Electronic Tax Payments Re-regulated by Indonesian Tax Authority

    Electronic Tax Payments Re-regulated by Indonesian Tax Authority

    Recently, the Director General of Taxes (DG Tax) issued regulation number PER-05/PJ/2017 concerning Electronic Tax Payments (New Regulation). The New Regulation replaces DG Tax regulation number PER-26/PJ/2014 (Old Regulation), which also regulated electronic tax payments. The New Regulation aims to simplify the procedures for electronic payments which pertain to tax payments in US Dollar and administration of land and building taxes.

    Read more ›

No business profiles with this tag