How is Indonesian taxation regulation for loss carryback and loss carryforward?
Resident corporate taxpayers are taxed on their worldwide income. Losses can be carried forward for a period of five years. No foreign losses can be included in the tax computation. There are no loss carry back provisions in Indonesian tax law.
Does the UK have a tax treaty with Indonesia?
The Double Taxation Agreement entered into force on 14 April 1994. The agreement is effective in Indonesia from 1 January 1995 and in the UK from: 1 April 1995 for Corporation Tax. 6 April 1995 for Income Tax and Capital Gains Tax.
Is VAT claimable in Indonesia?
With a few exceptions, VAT is applicable on deliveries (sales) of goods and services within Indonesia at a rate of 10% up to 31 March 2022 and 11% starting 1 April 2022 onwards. Zero-rated VAT is also applicable on exported services, but subject to an MoF limitation.
Do foreigners have to pay taxes in Indonesia?
Non-residents are taxed on income from Indonesia only, at a final flat rate of 20 percent. The obligation to withhold, remit, and report tax on cash compensation paid in connection with employment rests with the local employing entity.
What is Indonesian VAT?
Tax system of Indonesia
|Value-Added Tax (VAT)||Tax Rate|
|• normal rate||10%|
What is the VAT rate in Indonesia?
Tax system of Indonesia
|Value-Added Tax (VAT)|
|• normal rate|
Does Indonesia have withholding tax?
Domestic Article 23 WHT is payable at the rate of 2% for most types of services where the recipient of the payment is an Indonesian resident and 15% for a variety of payments to resident corporations and individuals.
How do I claim VAT credit?
If Proof of Payment of VAT Is Available
- The taxpayer should prove that goods will be used for making taxable supplies, i.e., the final sales must be taxable.
- The registered person should be eligible for input tax credit on such inputs (i.e., he does not opt for composition levy)
How do I register for VAT in Indonesia?
The Indonesian VAT registration threshold is IDR 4.8 billion sales per annum. Paper-based applications for VAT registrations should be submitted to the regional tax office of the business. Once registered, the tax payer is granted a Tax Identification Number (TIN) of 15 digits.
How do I become a tax resident in Indonesia?
The income tax law sets out that an individual qualifies as a resident taxpayer if:
- The individual has a place of residence in Indonesia.
- The individual is present in Indonesia for more than 183 days within a period of 12 months; or.
How do I get my VAT refund?
Repayments are usually made within 30 days of HMRC getting your VAT Return. Your repayment will go direct to your bank account if HMRC has your bank details. Otherwise HMRC will send you a cheque (also known as a ‘payable order’). You can change the details that HMRC uses to make your repayment.