Tax Services

We provide a set of integrated professional services in the form of administrative and consulting tax services:

TAX COMPLIANCE & CONSULTING SERVICE

Our tax services include the formulation of tax optimization strategies, implementation of innovative taxation management, fulfillment of tax obligations and consultation on tax policies with the purpose of maintaining the company’s retained earnings.

The scope of work in the field of taxation can be categorized as follows:

Fulfill the tax administrative requirements in accordance with the Law on Taxation General Provisions and Procedures (KUP Law).
Which include:

  • Application for Taxpayer Identification Number (NPWP)
  • Taxable Entrepreneur (PKP) Confirmation Letter
  • Change of Tax Service Office (KPP) in relation to the change of domicile or business location
  • Tax Exemption Certificate
  • Centralized VAT Bookkeeping
  • Permit to use English and foreign currency in bookkeeping
  • and more

Taxes are involved in nearly all aspects of the business, and tax issues are significant components in the operations of every company. With the ever-increasing complexity and constantly changing tax regulations in Indonesia, as well as the lack of guidelines on the interpretation of Indonesian tax regulations, tax problems are likely to arise.

In such situation, you will need to identify the tax problems and find a way to resolve them. In order to resolve the problems, we will assist you in preparing the tax opinion.

How do we assist you?

You can discuss your tax problems with us, and our Tax Performance Consultant Practice can assist your tax function in dealing with regulatory, technological and globalization challenges by maximizing the effectiveness of your tax function through the implementation of efficient tax processes and software.

We provide guidance and tax consultancy both verbally (under an agreement) or in writing, and offers the right solution in accordance with the provisions of tax laws and related regulations (including copies of the rules).

Compliance and reporting represent a great demand on tax and financial functions today. We can assist you in managing your Indonesian tax compliance issues, risks and opportunities, which would allow you to focus more on your business. We have a strong team to provide high quality tax compliance services in a consistent manner.

For better reporting and compliance, we can assist our clients in fulfilling routine reporting obligations as follows:

  • Monthly return of Art. 21 withholding tax
  • Monthly return of Art. 22 withholding tax
  • Monthly return of Art. 23/26 withholding tax
  • Monthly return of Art. 4(2) withholding tax
  • Monthly Art. 15 Income Tax
  • Monthly Art. 25 Income Tax
  • Monthly VAT Return
  • Annual Tax Refund
  • Individual Taxpayer Annual Income Tax Refund (for expatriates, executives and HNWIs)
  • Corporate Taxpayer Annual Income Tax Refund.

We provide assistance in preparing and filing periodic Tax Return in accordance with tax regulations. We also assist the clients in fulfilling routine duties in the areas of income tax, value added tax, deduction/collection of tax by a third party, either on annual or monthly basis, with the following scope:

  1. Calculation of tax burden,
  2. Safekeeping of tax documents,
  3. Deposit into the state treasury, and
  4. Tax reporting

A major component of this service is the preparation and review of tax returns, e.g. Employee Annual Income Tax. In addition, we also prepare and/or review employee Periodic Tax Return, Value Added Tax and Withholding Tax Returns.

We also develop information technology and undertake research in the field of taxation to ensure accuracy in the calculation of the minimum tax in the context of fulfillment of tax burden.

Providing efficient planning for taxation and tax burden in accordance with prevailing legislations. This service is
provided in the form of verbal or written advice, including:

  1. Taxation treatment of certain transactions, mergers, acquisitions and liquidations
  2. Structuring of legal status and tax implications for new investments in Indonesia
  3. Acquisition of rights and tax facilities, such as excess of tax refunds, centralized filing, VAT payable, tax reduction
  4. Revaluation of assets
  5. Submission of completed tax certificates and licenses.

Reviewing the clients’ compliance with their tax obligations and identifying potential problems.

Accompanying the client during audit by the tax authorities. Providing explanation for the auditor’s findings to obtain result in the form of tax assessment letter (SKP), assisting clients in preparing the necessary documents and correspondence with the tax auditor.

Performing inspection procedures before they are executed by the local tax office. Preparing financial statements by the taxpayer, including verifying the supporting documents in accordance with the provisions of laws and regulations, and providing the necessary explanations and suggestions.

Accompanying clients in the objection process until completion, including preparing an explanatory objection letter for the tax authorities to obtain verdict in the form of Objection Decision Letter.

Accompanying in the clients’ appeals process as a tax consultant in the Tax Court, including preparing an appeal letter and rebuttal as well as providing explanation to the judges in order to obtain results in the form of Appeal Decision.

Accompanying taxpayers in the tax refunds they are entitled to, in accordance with the provisions of applicable laws and regulations, in order to obtain results in the form of tax overpayment assessment letter.

Accompanying in the process of application for tax exemption certificates. Golden Taxpayers (Compliant Taxpayers) are entitled to receive an exemption decision and appointment letter in accordance with the provisions of applicable laws and regulations.

Providing practical and effective in-house training and employee-related learning methods by a team of expert trainers.

Our experience in tax litigation serves as our strength and competitive advantage to assist you in dealing with disputes in the tax court. Our litigation services consist of the following:

  • Tax Audit
  • Tax Objection
  • Tax Deduction/Tax Exemption
  • Tax Appeal
  • Tax Lawsuit

Transfer Pricing has become a current issue for tax authorities worldwide, since it may be used to shift income and assets from one jurisdiction to another with favorable tax rates. Under such circumstances, the Directorate General of Taxes (DGT) continuously monitors any potential income shifting, particularly in multinational company groups. DGT has set up a special Transfer Pricing unit and will establish certain transfer pricing auditor groups for each Tax Service Office (KPP).

Those with potentially higher risks?
  • Companies undertaking significant transactions with primary partners from low-tax jurisdictions, tax haven countries and non-treaty partners.
  • Companies with lower economic profits trend compared to the industry trend
  • Companies having significant values from related party transactions compared to the respective taxpayers’ turnover and operating profits
  • Companies incurring commercial losses consistently for five years or more
  • Companies paying a significant amount of royalties, particularly if the intellectual property is not legally registered
  • Companies with inconsistencies between
    intercompany contracts, transfer pricing policies and detailed transaction documents such as invoices or customs documents.

Our transfer pricing professionals will assist you in preparing, managing, documenting, reviewing and defending transfer pricing policies and processes, harmonizing them with your business strategy. Our talented personnel will work with you in formulating proactive, pragmatic and integrated strategies for dealing with current tax and business risks and helping your business to achieve its potentials.

How do we assist you:
  • Development of strategies and policies
  • Optimization of governmental and decision-making processes to assist in:
    1. Performing coordination throughout the organization
    2. Monitoring the transfer pricing history
    3. Minimizing the impacts of year-end adjustments
    4. Global or regional assistance to support the transition towards new documentation requirements
    5. Global transfer pricing controversies and risk management

Assessment of the risks of controversy, correction or mitigation as a result of documentation requirements

Multinational Enterprises (MNEs) are faced with the challenges in managing a competitive business in the global economy and to survive any global crisis, while maintaining the focus on their compliance with the increasing regulatory requirements. We assist corporations in managing the complexity of the double taxation system and supranational regulations worldwide.

We can assist you in managing International Corporate Taxes in the following fields:
  • Efficient tax planning according to the company’s location
  • Planning for the location or relocation of intangible assets, functions and risks
  • Planning for tax-efficient supply chain network such as in finding limited distributors, limited producers, provision of contract services, etc.
  • Tax consulting service agreements
  • Tax planning for controlled foreign companies
  • Organizing cross border cost-efficient taxes.