Who is it for?

Monthly Tax Reporting is relevant for:

1. Business Owners (Local and Foreign): If you’ve set up a business in Indonesia, regardless of whether your business is profitable or not, you’re required to report your taxes on a monthly basis.
2. Expatriates and Foreign Workers: If you’re employed in Indonesia or run a business, understanding your monthly tax obligations is vital.
3. New Business Owners: Many entrepreneurs are surprised to learn that they must report taxes every month, not just once a year. It is essential to prepare for these obligations during the early stages of business setup.
4. Large Businesses: If your business’s gross revenue exceeds 4.8 billion IDR annually, you will need to meet additional requirements, such as obtaining a Taxable VAT Entity Confirmation Number (SPPKP).

What Are the Benefits of Monthly Tax Reporting?

1. Legal Compliance:

   • Monthly tax reporting ensures that your business remains compliant with Indonesian tax laws and regulations. Staying up-to-date with your tax filings is essential to avoid penalties, surcharges, and even imprisonment in extreme cases.

2. Avoiding Penalties and Fines:

   • Late filings or missed reports can result in significant fines and surcharges. Regular monthly reporting minimizes the risk of penalties and demonstrates your commitment to legal business practices.

3. Proactive Financial Management:

   • By staying on top of your taxes, you can manage your finances better. Regular reporting allows you to track your financial health more effectively and make timely decisions that can impact your business’s bottom line.

4. Transparency and Accountability:

   • Monthly tax reporting increases the transparency of your business operations. This accountability ensures that both the business owner and the Indonesian tax authorities have an accurate understanding of your company’s financial status.

5. Peace of Mind:

   • Knowing that you’re fulfilling your legal obligations and staying on top of your taxes allows you to focus on growing your business without worrying about possible legal issues or fines.

6. Eligibility for VAT Registration:

   • If your business’s gross revenue exceeds 4.8 billion IDR, you’ll be required to report and pay VAT (Value-Added Tax). By managing your monthly tax reporting properly, you can ensure you meet these requirements and stay compliant.

When Should You Start Tax Reporting?

Once your business is registered in Indonesia, you’ll need to:

1. Obtain your Tax ID Number (NPWP): This number identifies your business as a taxpayer.
2. Receive your Tax Relief Certificate (SKT): This confirms that your business is a registered taxpayer.
3. Taxable VAT Entity Confirmation (SPPKP): If your business has an annual gross revenue above 4.8 billion IDR, you will need to confirm your status as a VAT entity.

From this point forward, you are obliged to file your tax reports each month, even if your business has not yet earned any revenue or made a profit.

Key Filing Deadlines:

• Corporate Tax Reporting: Must be filed by the 20th of the following month.
• Tax Payments: Must be made by the 15th of the following month.

It’s important to note that even if your business hasn’t made a profit, you still need to file a zero tax report to ensure you are complying with the law.

Fully Inclusive Tax Packages

To simplify your monthly tax reporting, we offers fully serviced packages designed to help your business operate smoothly. Our All-Inclusive Package covers both monthly and annual reporting and helps save you time, reduce stress, and avoid costly mistakes.

With our services, you can rest assured that your business is in compliance with all tax obligations. Our expert team handles:

• Monthly Tax Reporting
• Annual Tax Reporting
• VAT Reporting
• EFIN Registration
• Individual Tax Reporting
• Payroll and Accountancy Needs

By opting for our package, you ensure that your business stays legally compliant, allowing you to focus on what matters most – growing your business.

Need Assistance?

If you’re unsure about how to manage your taxes, need help with filing monthly tax reports, or have other tax-related questions, feel free to reach out to our team. We are here to help guide you through the complexities of Indonesian tax laws and ensure that your business stays compliant, with minimal hassle.

Monthly Tax Reporting is a critical part of doing business in Indonesia. By understanding the reporting process, meeting deadlines, and staying compliant with the tax authority’s regulations, you can ensure that your business runs smoothly. We offers tailored packages to make your tax reporting process simple, efficient, and stress-free. Get in touch with us today to find out more about how we can assist with your tax reporting needs!