Important Tax Compliance Deadlines in Indonesia

Date of Post

December 21, 2022

Written by

lemonadecares

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 TaxDeadline
Tax PaymentTax ReportingReporting Method
Monthly
Art. 21By 10th of the following monthBy 20th of the following monthe-Filing (DJP Online)
Art. 23e-Bupot Unification (DJP Online)
Art. 26e-Bupot Unification (DJP Online)
Art. 4(2)e-Bupot Unification (DJP Online)
Art. 25By 15th of the following monthBy 20th of the following monthPayment = Report
VAT*Before the deadline of the following monthBy the end of the following monthe-Faktur
Self-Assess VATBy 15th of the following monthBy the end of the following monthe-Faktur
VAT Invoice*Must be issued at the latest by 15th of the following monthe-Faktur
Annual
Art. 21 DecemberBefore the tax filingBy end of the January next yeare-Filing (DJP Online)
Corporate Income Tax ReturnBefore the deadline of reportingBy 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) NotificationN/ABy end of the following fiscal yeare-CbCr (DJP Online)
TP Documentation (see below)N/ABy 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.
Read More:  Document Checklist for Setting Up a PT PMA Company in Indonesia

*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:

  1. Gross turnover for the previous tax year is more than IDR 50 billion; or
  2. 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;
  3. 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.

Read More:  Accounting Standards and General Audit Requirements in Indonesia
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