Category: Financial Compliance and Tax
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Invoicing Offshore Clients from a PT PMA in Indonesia
The framework for invoicing offshore clients from a PT PMA in Indonesia: the PMK 32/PMK.010/2019 zero-rated VAT regime, corporate income tax at 22 per cent on worldwide income, Article 24 foreign tax credit, LLD reporting, and transfer pricing exposure under PMK 172/2023. READ MORE →
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Taking Money Out of a PT PMA: Dividends, Fees, Salary and Shareholder Loans
Four routes for extracting cash from a foreign-owned PT PMA: director salary, fees, dividends, and shareholder loan repayments. Worked tax comparisons with treaty rate examples on each. (185) READ MORE →
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Anti-Money Laundering Compliance for a PT PMA in Indonesia
AML compliance for a PT PMA sits alongside tax and forex in every outbound transfer decision. Indonesia’s full FATF membership from October 2023, PPATK reporting under Law 8/2010, sanctions screening, and beneficial ownership disclosure. READ MORE →
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Sending Money Offshore: Outbound Payments from a PT PMA
A foreign-owned PT PMA sends money offshore regularly: payments to suppliers, consultants, parent companies, and shareholders. Each transfer carries an Indonesian withholding obligation under PPh Article 26, a treaty rate application process, a Bank Indonesia reporting requirement, and a bank documentation set. READ MORE →
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Consultant Tax in Indonesia: PPh Article 23 and the Consultant-Employee Line
New foreign-owned PT PMAs frequently make a recurring error: paying the full consultant invoice without applying the withholding. This article works through the PPh Article 23 framework, the seven-factor consultant-employee substance test, the 2 or 4 per cent rate structure, and the NPWP rule. READ MORE →
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The Villa Question and the Line on Directors’ Personal Expenses
The villa question reaches nearly every foreign director running a Bali PT PMA in the first six months of trading. The 2023 reform to Indonesia’s benefit-in-kind regime under PMK 66/PMK.03/2023 changed the answer materially. Worked arithmetic on villa rent, vehicles, school fees, and KITAS costs. READ MORE →
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The IDR 10 Billion Question: Paid-Up Capital for a PT PMA in Indonesia
The IDR 10,000,000,000 paid-up capital requirement is the entry point for a PT PMA. The figure is recorded in the company’s bank account, retained for at least 12 months under Article 27 of BKPM Regulation No. 5 of 2025, and deployed into the licensed business activity over the multi-year investment plan that BKPM measures through… READ MORE →
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A Financial Reporting System that Survives Deadline Season
For a PT PMA, the Indonesian reporting year fills a calendar with deadlines that run through every month, with the quarterly LKPM and the annual cycle overlaid. The financial reporting system that prepares each filing from the company’s own records, in advance of every date, is what survives deadline season. TraceWorthy’s financial services team performs… READ MORE →
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The Investment Activity Report, and Why it Exists
Every PT PMA files the investment activity report (LKPM) each quarter from the day its NIB is issued, including quarters with no activity. The 15th-of-the-month deadlines under BKPM Regulation No. 5 of 2025 set a fixed rhythm. The work behind each report falls across investment plan structuring, quarterly preparation, cross-system reconciliation, and sanctions response. READ MORE →
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Why a PT PMA Pays the Same Corporate Income Tax as a Local Company
Corporate income tax in Indonesia is 22 per cent for every resident company, and a PT PMA is resident, so a foreign-owned company pays the same rate as a local one. Reliefs follow turnover and listing. Ownership reaches the position only through the withholding on dividends sent abroad and the global minimum tax on large… READ MORE →