Category: Financial Compliance and Tax
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Company Reserve Funds: How Much to Set Aside and Where to Keep It
Profit is an accounting result and cash is what is available in the bank account. Reserve funds close the gap. A framework for sizing and separating the funds an Indonesian company needs to set aside for a healthy business. READ MORE →
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How a Dive School Owner Fell Two Years Behind on Tax and Put His Team at Risk
A skilled diver built a school that filled its boats and put fifteen people to work, then fell two years behind on the company’s tax filing. The old portal closed, the company never entered Coretax, and the staff were left unable to file their own returns. This is the human story, and the recovery. READ MORE →
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How a Trusted Director Drained the Company a Creative Founder had Built
Sales were strong, yet the money never reached the company account. One founder’s story of a trusted director, misappropriated funds, and the long road back. READ MORE →
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Invoicing Offshore Clients from a Company 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 Company: 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 →