Tax Report PT PMA
Any PT PMA is cumpulsory to pay taxes and report the company’s financial status as standard accounting in Indonesia. Many Indonesian taxes that should be paid by PT PMA are similar to what stakeholders should pay in different countries.
Among them are monthly and annually withholding taxes, monthly and annual income taxes, Value Added Tax (VAT), Luxury Goods Sales Tax (LGST)—if any, along with the company investment plan. Those taxes should be paid in the local tax office, where the company office is located.
When a PT PMA has a domicile in the Indonesian territory, it will be treated as an Indonesian tax resident, so that the company has the obligation as a resident taxpayer. The taxation regulation in Indonesia incorporates both a self-assessment system and a withholding tax system.
To know more about the Tax Law and regulations, the Indonesian government has issued:
- The General Provisions and Taxation Procedures Law No. 28 of 2007;
- The Income Tax Law No 36 of 2008;
- The Value Added VAT (termed ‘Goods and Services and Sales Tax on Luxury Goods’) Law No 42 of 2009.
In order to fulfill the obligation to pay the tax, PT PMA can choose one among these two options:
- Hiring an accountant to do all the reporting and payment of the tax.
- Finding a tax consultant to help the company dealing with the tax.
All the reports and tax documents should be sent to the local tax office, where your main head office is located (your registered address).
Taxation Schedule in Indonesia
Some taxes should be paid on a monthly basis and some others are required to be filed annually. To give you broader pictures of Indonesian taxation schedules, we give you a brief overview illustrated below.
The company’s taxes that should be reported monthly include Corporate Income Tax, Employee Withholding Tax, Other Withholding Taxes, as well as VAT and LGST.
These taxes are usually paid before the 10th day of the following month for the withholding taxes and before the 15th of the following month for the Corporate Income Tax.
The first three taxes must be filed or reported before the 20th of the following month, whereas especially for VAT and LGST, they have to be reported at the end of the following month.
On the other hand, taxes that should be paid annually include Corporate Income Tax, Individual Income Tax, and Land and Building Tax (for both the office and the factory or warehouse—if any). The deadline for the first two is before filing the tax return, and the deadline for the last one is 6 months after receiving a tax notification letter from the tax office.
All taxes should be paid regionally.