Tax Consultant

Tax representatives can be either tax consultants or designated employees. A tax consultant helps taxpayers exercise their rights and meet tax obligations under applicable laws.

Indonesia’s tax system relies on self-assessment, requiring taxpayers to understand and follow relevant regulations. Since not all individuals or businesses have the expertise to handle this, they often seek assistance from tax experts to ensure compliance and fulfil their obligations.

Legalities of a Tax Consultant

A tax consultant in Indonesia operates under various legal frameworks and regulations related to taxation, financial reporting and business operations. These laws ensure compliance with the tax system and provide guidance for both individuals and businesses.

  • General Taxation Law (Law No. 6 of 1983, amended by Law No. 16 of 2009): Governs tax procedures, filings, audits, and penalties.
  • Income Tax Law (Law No. 7 of 1983, amended by Law No. 36 of 2008): Covers personal and corporate income tax, as well as withholding tax.
  • VAT Law (Law No. 8 of 1983, amended by Law No. 42 of 2009): Regulates Value Added Tax on goods and services.
  • Tax Amnesty Law (Law No. 11 of 2016): Provided amnesty for unreported assets with reduced penalties.
  • Stamp Duty Law (Law No. 10 of 2020): Requires stamp duty on certain documents and high-value transactions.
  • Transfer Pricing Regulation (PMK No. 213/PMK.03/2016): Regulates related-party transactions for compliance with transfer pricing rules.
  • Tax Administration Law (Law No. 28 of 2007): Governs tax filings, audits, and dispute resolutions.
  • Customs Law (Law No. 17 of 2006): Regulates customs duties and excise taxes for imports and exports.
  • Law on Electronic Information and Transactions (Law No. 11 of 2008): Supports electronic tax filings and online payment systems.
  • Corporate Income Tax (Law No. 36 of 2008): Defines corporate tax rates and reporting.
  • Law on Regional Taxes (Law No. 28 of 2009): Regulates local or regional tax obligations.
  • Omnibus Law (Law No. 11 of 2020): Reforms business licensing and taxes.
  • Minister of Finance Regulations: Provide detailed guidance on tax compliance, audits, and procedures.
  • Double Taxation Treaties: Manage cross-border taxation issues and prevent double taxation.

Tax consultants need to stay up to date with these laws and ensure that both individuals and businesses comply with local, national, and international tax regulations. They provide critical services, including tax planning, filing, and representation in tax disputes.

Tax Consultant Fees

The service fees for tax consultants in Indonesia can vary depending on the specific services provided, the complexity of the tax issues, and the size of the business or individual needs. 

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