Indonesia has increased its VAT registration threshold from IDR 0.6bn to IDR 4.8bn per year in taxable turnover with effect from 1 January 2014. The stated goal is to reduce the VAT compliance burden for small and medium sized businesses. The current VAT rate is 10%, and registered businesses must complete monthly VAT returns. Foreign companies may, however not register for Indonesian VAT; there is also no provision for recovery of local VAT by an unregistered business.
«
China: Tax Revenues grew in 2013
Malaysia: Audits process
»
Related Posts
Indonesia announces relief to ease 2025 VAT hike impact
Indonesia’s government has announced a relief package to mitigate the effects of the upcoming VAT increase to 12%, set to take effect on 1 January 2025. Earlier, Indonesia’s Finance Minister, Sri Mulyani Indrawati confirmed that the VAT rate
Read MoreIndonesia publishes guidance on joint operations tax
Indonesia’s Ministry of Finance introduced Regulation No. 79 of 2024 (PMK 79) regarding the tax treatment of joint operations on 28 October 2024. The joint operations are classified into two categories based on their tax requirements: those
Read MoreIndonesia to raise VAT rate on luxury goods
Indonesia’s President Prabowo Subianto has approved a plan on 6 December 2024 to increase the value-added tax on luxury goods by one percentage point to 12% in 2025, according to Sufmi Dasco Ahmad, the deputy speaker of parliament. Starting 1
Read MorePhilippines plans to revise tax treaties with Indonesia, Malaysia, Singapore
The Philippines government is reportedly planning to enter into negotiations to revise the 1981 tax treaty with Indonesia, the 1982 tax treaty with Malaysia, and the 1977 tax treaty with Singapore. The agreement between the Philippines and
Read MoreIndonesia to implement planned 12% VAT rate increase in 2025
Indonesia's Finance Minister, Sri Mulyani Indrawati, has confirmed that the country will increase its standard VAT rate from 11% to 12%, effective 1 January 2025. The VAT adjustment aligns with the nation's Tax Regulation Harmonization Law,
Read MoreIndonesia extends tax holiday for key industries, adapts global minimum tax
Indonesia has issued Regulation No. 69 of 2024, extending the tax holiday incentives for pioneer industries as outlined in Regulation No. 130/PMK.010/2020. Regulation No. 130/PMK.010/2020 replaces Regulation No. 150/PMK.010/2018 and extends
Read More