TAX REGULATIONS
LEGAL & TAXES
How to report taxes in Indonesia
Your company has to report its taxes in Bali even if you have no activities. It is crucial to do the reporting correctly to avoid penalties and additional expenses for the reporting that has been left undone.
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You don’t have to travel to Bali or learn about the tax regulations to report your income tax. Get in touch with VIVO ASIA and we will file the taxes on behalf of you.
Annual personal income tax reporting
Due to closing the tax offices, the reporting deadline for annual personal income tax reporting was moved to the end of April 2020. The end of April 2020 is also the deadline for the annual corporate income tax reporting and this deadline has not changed.
The tax report is mandatory:
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For individuals who got their tax card (NPWP) in 2019 or before it
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For companies whose tax card was issued in 2019 or before it
Reporting can be done only online, and it is not possible to file a physical tax report. To register online, the individuals and companies must register an online tax filing number (EFIN).
Registering for online tax applications (EFIN)
Previously, for registering the EFIN, the individual (for personal tax reporting) or director (for corporate tax reporting) had to go to the tax office physically, then now the tax office accepts EFIN registration applications online. Thus, it is perfect timing to get it done the easiest way and avoid going to the tax office in the upcoming month. Once you have EFIN, all the reporting can be done online.
Corporate income tax
For corporate income tax, there is no need to report or submit any application as the corporate income must be reported only for the months when the company is earning income.
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The salary tax (PPh 21) must be paid and reported in accordance with the salaries actually paid to the employees. Thus, if employees are not paid (see the options to reduce the working time), you do not need to pay the salary tax and have to report zero income.
Paying BPJS
If the employees have been registered with the BPJS, the BPJS payments keep running as usual. This means that even if you do not pay a salary or pay less than the registered salary with the BPJS, you need to pay full BPJS sum unless the BPJS registration has been changed or the employee has been deregistered from the BPJS. If you want to remove an employee from BPJS, you need to have the consent of the employee for that. Otherwise, it is considered a unilateral termination of the employment contract by the employer which can be illegal if not done following the laws.