Monthly tax reporting in Indonesia

Indonesia has a large number of economic laws and regulations, and tax issues can often be difficult to resolve. And it takes a lot of time and effort to figure it out. But in case of a long stay in the country, as well as if you are a business owner or work in Indonesia, you at least need to know about the monthly tax reporting. When opening a business in the country, it's mandatory to comply with both monthly and annual tax reporting requirements.

Step-by-Step Guide to Starting a Business in Indonesia:

open a business in Indonesia;
register as a taxpayer;
get NPWP – Taxpayer's personal identification number;
get a SKT certificate of tax benefits;
get the confirmation number of the VAT subject. It is additional if the gross income of the enterprise exceeds 4.8 billion Indonesian rupees.

Important Note: After obtaining your NPWP and SKT, it is mandatory to calculate, pay and submit a report to the tax administration of Indonesia. It's a misconception to assume that a new company without profits is exempt from tax reporting. This is not the case. You are still required to file a zero tax report. Otherwise, you will have to pay fines, and it can also lead to prison.

Additionally, corporate taxes must be reported by the 20th of the following month. At the same time, all tax payments must be made before the 15th.