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Introduction - Tax Regimes in Indonesia
The complexity of Indonesia's tax regime appears to have stabilized, as compared with the results from 2014 when over half of the respondents believed the tax environment had become more complicated. Wide-ranging tax reform is on the horizon in Indonesia however as new tax laws are scheduled to be introduced in 2018 that will cover general taxation and administration, personal and corporate income tax, and VAT. Implementation of the reform is likely to be accompanied by an increase in the complexity of Indonesia's tax environment. "Complexity" means the perceived level of difficulty in interpreting and understanding the tax law and rules in the relevant jurisdictions*.
Given the complex, unpredictable and inconsistent tax environments that many respondents' companies are operating in, relationships with tax authorities are key to managing their tax affairs and mitigating risks.
Given the complex, unpredictable and inconsistent tax environments that many respondents' companies are operating in, relationships with tax authorities are key to managing their tax affairs and mitigating risks.
Accounting Procedures Comply to TaxationTax - Customs Compliance, Advisory & DisputeEnterprise Resource Planning (ERP)
Tax - Customs Compliance, Advisory & Dispute
Faced with an uncertain global economic environment, countries in Asia Pacific are aggressively attempting to capture their share of tax revenue from crossborder activities. One of the primary mechanisms used for countries to attract foreign investment is to lower their corporate income tax rates. Perhaps influencing decisions to enter into and exit from certain jurisdictions, survey respondents identified corporate income tax as the most important taxation area for their business. Governments are also looking to maximize tax revenue from companies operating in their jurisdictions.
In the larger jurisdictions, such as Australia, China, India, Japan, and including Indonesia most respondents agree that tax authorities' audits are rigorous; and many are witnessing a higher frequency of such audits. Tax disputes are likely to escalate further in the future, and audits are likely to intensify. Dispute resolution processes, however, can be lengthy in many jurisdictions including Indonesia.
First Consulting provides in-depth technical and practical knowledge, comprehensive understanding of business and industry system, the related intricacy of tax and regulatory affairs and relationships with tax authorities to achieve various tax compliance requirements. Relationships with tax authorities are also key to managing tax affairs and mitigating risks because tax dispute resolution in Indonesia may take a long process. Each of the tax dispute resolution steps needs to be manage properly and monitored closely to ensure the best possible outcomes.
In the larger jurisdictions, such as Australia, China, India, Japan, and including Indonesia most respondents agree that tax authorities' audits are rigorous; and many are witnessing a higher frequency of such audits. Tax disputes are likely to escalate further in the future, and audits are likely to intensify. Dispute resolution processes, however, can be lengthy in many jurisdictions including Indonesia.
First Consulting provides in-depth technical and practical knowledge, comprehensive understanding of business and industry system, the related intricacy of tax and regulatory affairs and relationships with tax authorities to achieve various tax compliance requirements. Relationships with tax authorities are also key to managing tax affairs and mitigating risks because tax dispute resolution in Indonesia may take a long process. Each of the tax dispute resolution steps needs to be manage properly and monitored closely to ensure the best possible outcomes.