Paying tax in Indonesia is an obligation to every resident. Given the fact that taxes represent a large amount of the country’s income, Directorate General of Taxes makes the regulation for this matter. At Double M, we offer to help you with tax in Indonesia.
As an Indonesian Taxpayer Resident, it is important to know that an Indonesian citizen has to pay several types of tax in Indonesia:
Income Tax is the amount of tax that must be paid for the amount of income that is received in a tax year. Every income, whether earned from Indonesia or overseas, must be counted and reported.
Value-Added Tax is the amount of tax that must be paid due to the process of transfer or delivery of taxable goods or services. Simply put, Value-Added Tax represents the increase in value of the products, since they were manufactured until they were sold.
Luxury Tax is the amount of tax that must be paid for the purchase of luxurious goods, either bought in Indonesia or overseas.
Land and Property Tax is the amount of tax that must be paid for the ownership and usage of land which is used to make buildings. In Indonesia, Land and Property Tax consisted of countryside and city taxes.
Stamp Duty, by definition, is a seal/stamp that is used to verify the legality of a document. Generally, stamp duty is used in Notary documents, letter of agreement, payment receipt, and any other letter that involves the agreement of payment between the parties who put their signatures.
Tax Calculation and Payment can be an intricate process. Double M is committed to help our clients calculate and report their taxes. Should you have any inquiries, please contact us.