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Tax law in Surabaya is governed by the Directorate General of Taxes under the Ministry of Finance, Indonesia. In Surabaya, Indonesia, several types of taxes exist such as Income Tax, Value Added Tax (VAT), Corporate Tax and Property Tax, among others. The taxation system follows both a global and schedular tax system, depending on the type of income in question. Understanding the intricacies of the Indonesian tax system may be complex and time-consuming for those who have not spent time studying it.
Several scenarios could require a tax lawyer's help. If you own a business and are dealing with complex tax matters, planning to lodge a complaint or negotiate with the tax authority, or even if you're being investigated by the tax department, an expert tax lawyer can save you from potential costly outcomes. Tax lawyers can also assist with understanding Indonesia's complex tax regulations, ensuring you comply with all tax-obligations, and structuring your affairs to minimize your tax liability.
The Indonesian tax law is based on a self-assessment system, where taxpayers are expected to calculate, pay, and report their taxes independently. Companies are required to submit their annual tax return before the end of April following the fiscal year, while individuals have until the end of March. Non-compliance attracts penalties, so it's critical to understand and accurately assess the taxes you owe. Corporate tax rate in Indonesia is 22% but for corporations with gross turnover less than IDR 50 billion, the rate is only 12.5%. Property tax is generally 0.5% of the sales value of the property.
Indonesia follows a progressive income tax system for individuals, ranging from 5% to 30%, based on the individual's income level. Income from employment is taxed at source through a withholding system.
In general, a 10% VAT applies to most goods and services in Indonesia. However, some goods like certain foodstuff, money, and securities, among others, are VAT-exempt.
Yes, taxpayers can appeal against any tax assessment, objection, or cancellation decision within three months from the issuance of the respective notice.
If you're subject to a tax investigation, you have the right to have your tax attorney present during the inquiry, and you are entitled to receive a copy of a detailed investigation report on completion of the investigation.
Penalty for late payment of tax is 2% per month up to a maximum of 48% while the penalty for late filing of tax return is IDR 100,000 for individuals and IDR 1,000,000 for companies.
For your convenience, here are several resources related to tax in Surabaya:
If you need assistance with tax law in Surabaya, consider getting a tax lawyer or tax consultant who specializes in Indonesian Tax Law. You can search online or seek recommendations from the Indonesia Tax Consultants Association. Be prepared with as much information and supporting documents as possible for your first meeting to help your advisor understand your situation better.
