Indonesia has been making steady economic progress in recent years. As more companies re-invest in Indonesia, they will need to have an understanding of the tax policies and issues to assess the risks and rewards of doing business in Indonesia. This two-day workshop by ISCA is designed to provide an in-depth view of the tax regime in Indonesia. Using practical case studies, our speakers will highlight the latest updates on tax reforms and issues on corporation taxes, individual income tax, transfer pricing and tax considerations for mergers and acquisitions in Indonesia.
Agenda for Day 1
Corporate Tax in Indonesia
- Basis of corporate taxation and different tax regime
- Definition of PE in Indonesia
- Impact of Tax holiday/allowance facility
- Allowable deductions and reporting requirements
Application of Withholding Tax
- Overview of withholding tax system
- Domestic transactions subjected to withholding tax
- Cross border transactions subjected to withholding tax
- Application of tax treaty provisions
Employees’ Taxation in Indonesia
- Regulatory basis and scope of individual taxation in Indonesia
- Exemptions and deductions allowable and their limits
- Prescribed monthly tax rates VS Annual tax calculation
- Common planning techniques
Transfer Pricing compliance in Indonesia
- Three-tiered TP documentation in Indonesia
- Consequences of incompliance with the TP requirements & constructive dividends
- TP compliance for intercompany service, royalty, and financial transactions.
Agenda for Day 2
VAT Issues & Managing VAT in Indonesia
- Legal framework of Indonesian VAT
- VAT-able and non VAT-able objects
- VAT invoices
- VAT credit and refund regime
- VAT related concessions
Implementation of Pillar 2 in Indonesia
- Global minimum tax concept
- Subjects, criteria, and its exclusion
- GloBE income, ETR and Top-Up tax calculations
- Compliance requirements
Managing Tax Audit and Disputes with the Revenue Department
- Tax authority’s power of inspection / audit
- Prescription for issuing a summons for tax audit and tax assessment
- Offences and penalties for income tax, VAT, and transfer pricing
- Tax objection and appeal process
- Taxpayers’ protection
Transfer Pricing Dispute Resolution
- Three-tiered TP documentation in Indonesia
- Consequences of incompliance with the TP requirements & constructive dividends
- TP compliance for intercompany service, royalty, and financial transactions.
Transfer Pricing Consensus
- Advanced Pricing Agreement (“APA”) in Indonesia
- Mutual Agreement Procedure (“MAP”) in Indonesia