Q: Why is tax compliance so challenging for foreign companies in Indonesia?
A: Indonesia has multiple layers of tax rules that differ by business type and sector. PT PMA companies must handle corporate income tax, employee withholding tax, VAT (SPPKP), and annual financial reports.
Many foreign companies struggle because regulations change often, and most documents are in Bahasa Indonesia. Missing one report can lead to penalties or blocked licenses.
Q: What taxes must a foreign-owned company (PT PMA) pay?
A: Typical obligations include:
- Corporate Income Tax (CIT) – standard rate 22%
- Value Added Tax (VAT) – 11% on most goods and services
- Employee Income Tax (PPh 21) – based on progressive rates
- Withholding Tax on certain payments (PPh 23, 26)
- Import duties if importing goods
Swift Visa Indo provides full tax calculation and reporting for these obligations to prevent late fees.
(Related: Foreign Investment Company)
Q: How does VAT (SPPKP) registration work?
A: Any PT PMA planning commercial activity must register for VAT by applying for SPPKP and obtaining a NPWP. This must be done soon after company incorporation.
Swift Visa Indo helps prepare documents, register online, and handle follow-up inspections from the tax office.
Q: What accounting standards apply in Indonesia?
A: Companies must follow Indonesian GAAP (PSAK). All transactions must be recorded in Rupiah, and financial reports must be submitted in Bahasa Indonesia.
Outsourcing bookkeeping to local accountants is common for foreign companies. Swift Visa Indo offers bilingual accounting to avoid miscommunication.
Q: How often must companies report taxes?
A: Monthly: VAT, employee tax (PPh 21), withholding tax (PPh 23/26)
Annually: corporate income tax and audited financial statements
Swift Visa Indo manages both monthly and annual reporting, ensuring deadlines are never missed.
Q: What payroll services are needed for foreign companies?
A: Every company must register employees with BPJS (social security), calculate payroll tax, and issue payslips.
Swift Visa Indo handles:
- Payroll calculation
- BPJS registration
- Monthly payroll tax submission
- Employee income tax reporting
(Related: Foreign Worker Visa)
Q: What happens if a company misses tax deadlines?
A: Penalties can be high:
- Late monthly VAT or payroll report: IDR 500.000 per report
- Late annual corporate tax: up to 2% of unpaid tax
- Repeated delays can block company license renewal
This is why most foreign enterprises rely on professional tax and accounting services.
Q: Can foreign companies outsource tax and accounting to local providers?
A: Yes, and it’s the preferred option. It saves time, reduces HR cost, and avoids compliance risk.
Swift Visa Indo provides:
- Full bookkeeping
- Monthly and annual tax reporting
- VAT and NPWP registration
- Payroll administration
- Compliance monitoring and reminders
(Read more: Reliable Tax and Accounting Services)
Q: How does this support immigration and HR needs?
A: Clean tax records are required to sponsor foreign staff. A company cannot apply for enterprise work permit Indonesia, enterprise expatriate visa Indonesia, or Indonesia visa for corporate employees if it has unpaid taxes.
Swift Visa Indo aligns tax compliance with immigration support to keep operations running smoothly.
Q: Why choose Swift Visa Indo for tax and accounting?
A:
- 11+ years of experience
- Direct coordination with tax offices
- Transparent pricing
- Real-time reporting and reminders
- Services available in English and Bahasa Indonesia
Tax and accounting are not just back-office tasks they are the backbone of legal operations in Indonesia.
With support from Swift Visa Indo, foreign enterprises can stay compliant, avoid penalties, and focus on growing their business.
Need reliable tax and accounting support? Contact Swift Visa Indo today and get a clear, worry-free system for your company.
