Non-profit organizations in Indonesia are subject to Income Tax. However, there are exceptions. Income is tax-exempt in case:
Foundation uses income to provide scholarship funds
Income of a foundation working in the area of education or research and development that is re-invested in its work (according to the timing requirements of the Income Tax law)
Though taxes do not apply to donations, keeping in mind there is no business or ownership between parties involved. As foundation is a legal entity, you must withhold some of it from third parties, which include:
Employees
Vendors
Withholding Tax | 2 % withholding tax for all services expenses For example:
|
Final Tax depending on chosen service |
|
Additional Tax |
|
For further discussions leading to solutions, reach out to VIVO ASIA. Set up a meeting and let’s talk about your ideas of building a foundation.
Comments