Eternity Law International — Ready-made company in Indonesia with an account

Ready-made company in Indonesia with an account

Published:
March 30, 2020

What is included:

  • Ready-made company in Indonesia ,
  • Account at a local bank,
  • Legal address

Cost: on request.

National Currency: Indonesian Rupiah (IDR)

Indonesia is a developed country with a rich economy. Included in the top twenty G 20 countries, takes 16th place in the world in terms of GDP.

Therefore, it is not surprising that business life in Indonesia is active. The island character of the country contributes to the fact that there are developed very diverse areas of activity: from tourism to heavy industry.

Local companies are taxed on their income within and beyond the country. Non-resident companies are taxed only on income earned within Indonesia.

Basic corporate tax is at 25% rate.

Local tax payers, receiving income equal to 4.8 billion rupiahs or less in year, enjoy lower tax of 0.5% of total income over a certain time period. If local company has income between 4.8 and 50 billion IDR – it gets 50% lowering of tax rate on funds in excess of 4.8 billion.

VAT is applicable to the provision of services and sale of goods. This tax is also subject to intangible goods same as to the provided to local enterprises services outside the country. VAT applies equally to all industrial products.

Production is defined as any activity that changes the original form or nature of a product, creates a new product or increases its productivity.

Delivery to certain areas (for example, to a free zone or to a customs zone) may have certain benefits. There are VAT exclusions for some services and goods.

In addition to VAT, some goods are relevant to the Sales Tax on Luxury Goods (LGST).

The basic rate is 10%. VAT on the export of taxable goods and certain taxable services is subject to zero tax.

The zero VAT rate for export services applies to:

  • production and toll services;
  • repairing and maintaining movable goods used beyond the customs zone of Indonesia;
  • construction building ‘s services are connected s real estate located outside Indonesian customs zone, or for her.

Certain deliveries of taxable goods and / or taxable services are subject to a special VAT base.

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