News › Weekly Alert Article

New Tax Laws For 2013

The Directorate General of Taxes has made amendments to the Indonesian tax system and introduced a number of innovations in an effort to increase or at least maintain tax revenues.

Taxand Indonesia discovers the new tax laws to be introduced in 2013.

January 2013
The Indonesia-Hong Kong Tax Treaty and the Indonesia-Morocco Tax Treaty will both come into effect 1 January 2013. Individual taxpayers will have a higher income tax threshold, increasing to Rp. 24,300,00 from Rp. 15,840,000. The right to collect the Land & Building Tax in villages and towns will be taken over by the local government.

March 2013
When reporting the Individual Annual Income Tax Return online, taxpayers must have an electronic filing identification number.

April 2013
There is a new procedure for the issuance of tax invoices. Previously, tax invoice numbering did not require an activation code and password. However, for security reasons, all taxable enterprises must have their own activation codes and passwords in order to issue tax invoices. If not, then a tax invoice shall be deemed to be incomplete.

December 2013
The expiry date for the issuance of tax assessment letters has been revised. The end of December 2013 is the expiry date for the issuance of tax assessments for the fiscal year, fiscal period, or part of the fiscal year 2007 and previous years. Previously, the cut-off period was 10 years, but this will now be reduced to 5 years.

Discover more: New tax rules to come into effect in 2013

Your Taxand contact for further queries is:
Prijohandojo Kristanto
T. +62 21 835 6379 / 835 6363

Taxand's Take

Any corporation operating in Indonesia should be aware of the tax changes occurring in 2013 in order to be compliant and to take advantage of any benefits.

Taxand's Take Author

Prijohandojo Kristanto