Tax for Foreign Employees in Indonesia: What You Need to Know
Understanding Indonesia’s Tax Regulations for Foreign Employees. Foreign employees working in Indonesia are subject to Indonesian income tax laws based on their residency status. According to the Directorate General of Taxes (DGT), an individual is classified as a tax resident if they stay in Indonesia for more than 183 days within a 12-month period or […]
Understanding Indonesia’s Tax Treaty Regulations
Indonesia has established tax treaties with many countries to prevent double taxation and encourage foreign investment. The Directorate General of Taxes (DGT) oversees the implementation of these agreements, ensuring that foreign investors are not taxed twice on the same income. Under Indonesia’s Double Taxation Agreements (DTAs), certain income types, such as dividends, interest, and royalties, […]
Understanding Indonesia’s Tax Regulations for Foreign Investors
Indonesia has a strict tax system that applies to both residents and foreign investors. According to the Directorate General of Taxes (DGT), foreign investors who earn income from Indonesia are subject to taxation, even if they reside outside the country. The government classifies foreign taxpayers into two categories: resident taxpayers (Wajib Pajak Dalam Negeri) and […]
Investment Activity Reporting Deadline (LKPM) 1st Quarter of 2025
Indonesia as one of the main destinations for foreign investment imposes strict rules regarding the reporting of investment activities for companies with Foreign Investment status (PMA). The Investment Activity Report (LKPM) is the main obligation that must be fulfilled by every foreign company operating in Indonesia. Through LKPM, the government can monitor investment realization periodically […]
Coretax Not Delayed, DJP Running Old System To Support Coretax
Based on Minister of Finance Regulation (PMK) No. 81 of 2024, the Directorate General of Taxes (DJP) ensures that the implementation of the latest tax administration system, Coretax, continues as planned. However, to address various technical challenges, DJP has decided to run the old system in parallel to support tax processes. This decision was made […]
Challenges for Foreign Investors: Navigating Coretax Registration
As with any major change, there are challenges, particularly for foreign investors. One of the main challenge is the Person in Charge (PIC)—the individual responsible for managing the company’s tax matters. For foreign investors, there’s a tricky requirement when it comes to the PIC: if your company’s PIC is a foreign national, they must have […]
Key Differences Between CoreTax and the Previous Tax System
Implementation CoreTax marks a significant shift in Indonesia’s tax system, aiming to enhance ease of use and data security for taxpayers. This integrated system also promises greater transparency in all tax processes. Here’s a breakdown of the primary differences between CoreTax and its predecessor: Service Integration CoreTax: Consolidates all tax administration services into a single […]
CoreTax 2025: What Every Business Owner in Indonesia Needs to Know Before It’s Too Late!
As 2025 approaches, the Indonesian government is rolling out CoreTax, a new centralized tax system that promises to revolutionize the way businesses handle their tax obligations. For business owners, this transition represents both an opportunity and a challenge. Here’s what you need to know to stay ahead of the curve and ensure your business is […]
New Foreign Companies: NPWP Registration Now Mandatory Through Coretax System
Coretax is an integrated tax administration system designed to automate and modernize Indonesia’s tax processes. Developed by the Directorate General of Taxes (DGT), it will facilitate various tax-related activities, including registration, reporting, and payment. By leveraging technology, Coretax aims to reduce manual errors, improve compliance rates, and ultimately increase the country’s tax revenue. NPWP (Taxpayer […]
Technical Issues in Indonesia’s New Taxation System (CORETAX)
One week into the launch, Indonesia’s new tax system (Coretax) is facing technical issues. The technical issues have caused some services such as NPWP registration and other tax services that must use the system still cannot be done. The DGT is conducting an in-depth investment to identify the cause of the technical problems. Director General […]