Tax compliance in Indonesia can seem like an endless “nightmare” as it has multiple deadlines to watch over, and it is built on a self-assessment mechanism where payment always comes before reporting.
Don’t worry, we have you covered!
The routine Indonesian tax compliance primarily involve monthly and annual compliance comprising three categories of tax obligations: (1) Withholding Tax; (2) Corporate Income Tax; and (3) VAT.
In general, the relevant timeline regarding tax payment and reporting which shall be fulfilled by entity taxpayer in Indonesia, can be summarised as follows:
| Type of Tax | Deadline | ||
| Tax Payment | Tax Reporting | Reporting Method | |
| Monthly | |||
| Art. 21 | By 10th of the following month | By 20th of the following month | e-Filing (DJP Online) |
| Art. 23 | e-Bupot Unification (DJP Online) | ||
| Art. 26 | e-Bupot Unification (DJP Online) | ||
| Art. 4(2) | e-Bupot Unification (DJP Online) | ||
| Art. 25 | By 15th of the following month | By 20th of the following month | Payment = Report |
| VAT* | Before the deadline of the following month | By the end of the following month | e-Faktur |
| Self-Assess VAT | By 15th of the following month | By the end of the following month | e-Faktur |
| VAT Invoice* | Must be issued at the latest by 15th of the following month | e-Faktur | |
| Annual | |||
| Art. 21 December | Before the tax filing | By end of the January next year | e-Filing (DJP Online) |
| Corporate Income Tax Return | Before the deadline of reporting | By 4th month after the end of the fiscal year (e.g. for companies with financial year ended on 31 December, the deadline for CIT reporting falls on 30 April) | e-Form (DJP Online) |
| CbCr (Country by Country Reporting) Notification | N/A | By end of the following fiscal year | e-CbCr (DJP Online) |
| TP Documentation (see below) | N/A | By the time of CIT Return filing (the summary of Master File and Local file shall be attached to CIT Return filing) | Submitted upon the request from the tax office. |
*Applicable to VAT registered enterprise only.
Transfer Pricing Compliance
The requirements for transfer pricing compliance are primarily governed under the MoF Regulation No.213/PMK-03/2016 (“PMK-213”). This regulation is broadly consistent with Action 13 of the OECD (Organisation for Economic Cooperation and Development)’s BEPS (Base Erosion and Profit Shifting) project in that it expands the existing transfer pricing documentation requirement to include (i) Master File; (ii) Local File; and (iii) Country-by-Country Report. The TP documents should be prepared in Bahasa language unless the taxpayer has obtained the approval to maintain their books in foreign language and using foreign currency other than IDR.
Under PMK-213, taxpayers having related party transactions should prepare Master File and Local File if:
- Gross turnover for the previous tax year is more than IDR 50 billion; or
- Total related party transactions during the previous tax year are:
- more than IDR 20 billion for tangible goods transactions; or
- more than IDR 5 billion for services, interest payment, intangible goods (e.g., royalties) or other related party transactions;
- The taxpayer has transactions with affiliates that are located in another country/jurisdiction that has a lower income tax rate than Indonesia (i.e., lower than 22%).
With regards to the point (c) above, please note that the taxpayers need to identify the applicable income tax rate in the jurisdictions of the related party counterparts, as criteria does not have a threshold amount. Therefore, even a small transaction can trigger a Master and Local File requirement if the counterpart’s jurisdiction has a lower income tax rate than Indonesia.
For CbCr reporting, typically this will not be required if the Company is a subsidiary and does not have any overseas subsidiary itself – nonetheless, it will be required to submit CbCr Notification by end of the December for the previous fiscal year.
