Financial Services

ONCE-OFF SERVICES TO 12-MONTH CONTRACTS

• Accounts payable administration
• Asset register management
• Bank account creation and reconciliation
• Bookkeeping and general ledger management
• Budgeting, cashflow management and reporting
• Compulsory health and employment insurance
• Corporate tax planning
• Depreciation schedules
• Foreign investment reporting
• Invoicing and accounts receivable collection
• Payroll administration
• Personal income tax
• Tax reporting and tax return filing
• Value Added Tax (VAT) and Withholding Tax (WHT) compliance

Make an appointment with the TraceWorthy Consulting team to work out what solutions best serve you and your company.

BOOKKEEPING – SIMPLE

Monthly accounting is an integral part of any business. However, it can be extremely time consuming and challenging.  Outsourcing bookkeeping activities to professionals is a cost-effective way to ensure your company is financially organised.

TraceWorthy Consulting will review, record and reconcile account information to make sure all transactions are recorded and reported on.  All you need to do is provide us with your incoming and outgoing invoices and bank statements.

• Receiving monthly invoices from the Client
• Labelling monthly bank statement transactions
• Entering all financial data into accounting software
• Preparing and issuing monthly cashflow statements
• Preparing and submitting monthly income and expense reports

BOOKKEEPING – COMPREHENSIVE

Free up your time to concentrate on core business activities by outsourcing some of your back-of-office bookkeeping and accounting activities, including:

Accounting:

• Maintenance of General Ledger
• Monthly financial statements, including profit and loss reporting
• Payroll

Tax:

• PPh 21 Personal Income Tax (payroll) calculation, preparation and submission
• PPh 23 Corporate Income Tax calculation, preparation and submission
• VAT and WHT calculation, preparation and submission

Other:

• BPJS Ketenagakerjaan and Kesehatan calculation, preparation and submission
• Foreign investment reporting (LKPM)

PAYROLL ADMINISTRATION

Payroll processing is one of the most challenging parts of running a business and is extremely time consuming for business owners.

Our payroll administration services will ensure that you can manage accuracy, security and confidentiality as key aspects of your payroll, as well as get access to our technology and expertise in employment compliance matters.

TraceWorthy Consulting will deliver:

STATUTORY INSURANCE (BPJS) REGISTRATION

In Indonesia, it is mandatory to register all employees for the national health scheme known as Badan Penyelenggara Jaminan Sosial (BPJS).

BPJS is a universal healthcare programme that consists of healthcare, a pension scheme, workplace injury recompense, as well as death benefits.

An important thing to note for foreign workers:  The BPJS scheme is linked to your KITAS.  Therefore, you must register for BPJS to renew your KITAS.

TraceWorthy Consulting will compile all documents, complete and lodge the appropriate application forms, and meet with the BPJS Relationship Officer to register you for both:

VAT, WHT, PPH21 and PPH23 REPORTING

In Indonesia, not only do businesses need to report annual taxes, but also on a monthly basis – even if there are no transactions. Additionally, the process can seem quite overwhelming, which is why a reliable and trustworthy tax consultant has never been so important.

TraceWorthy Consulting will calculate, prepare and submit the following statutory taxes each month:

• Value Added Tax (VAT) – imposed on goods or services transactions carried out by companies or individuals
• PPh 4(2), PPh 15, PPh 22, PPh 26 Withholding Tax (WHT) – obligation to collect taxes on income paid to third parties
• PPh 21 Personal Income Tax – withheld from salaries and severance payments and paid on behalf of employees
• PPh 23 Corporate Income Tax – payable on income derived from service delivery, capital, royalties, interest, etc.

FOREIGN INVESTMENT REPORTING (LKPM)

The Investment Activity Report ( LKPM ) is a quarterly report on the progress of investment realisation, the development of a company’s activities and the obstacles faced by investors.  The report must be submitted to the Investment Coordinating Board (BKPM), the Provincial Investment Office and One Stop Integrated Service (DPMPTSP) and the relevant Regency / City. 

The LKPM report includes data on:

• Company description, including the list of business fields and permits approved and activated
• Investment realisation, including increases in capital, labour use, land, realization of machinery and equipment, etc.
• Import realisation (if applicable), including both API-P and API-U licenses
• Use of labour, including changes in workforce
• Production of goods and services, including marketing effort
• List of management consulting services used
• Problems faced by the company

YEAR-END FINANCIAL STATEMENTS

TraceWorthy Consulting prepares corporate accounts to the Indonesian Financial Accounting Standards and the International Financial Reporting Standards (IFRS).

All accounts need to be prepared in Indonesian language and Rupiah unless permission has been obtained from the tax authorities to prepare the accounts in USD (the only other permitted currency).

The financial statements include:

The year-end financial statements must be presented to the AGM of the company, along with a report of the company’s business for the year and details of the remuneration of the Board of Directors and Board of Commissioners. The AGM can be held by electronic means – teleconference or video conference.

The financial statements may be used as a basis for preparing the annual tax return of the company.

Book an appointment with the Finance Team to discuss the most appropriate accounting system for your business needs.

ANNUAL TAX LODGEMENT – CORPORATE

Every company in Indonesia has to report its taxes even if it only has a branch or representative office or if no business transactions take place.  Corporate tax returns can get a little demanding as they are founded on periodic accounting and tax reporting,  which is critical to Indonesian tax compliance.  Many companies outsource their tax reporting to specialists such as TraceWorthy Consulting.

Tax reporting can only be done online.  To register, individuals and companies must apply for an online tax file number (EFIN).  TraceWorthy Consulting can help you with this process too.

Our annual corporate tax lodgement package, includes:

• Annual tax report preparation, including reporting income generated and assets and liabilities
• Submission of the company’s investment plan
• Submission of tax reports to the Directorate General of Tax
• Taxation advice related to regulation changes in Indonesia

TAX (NPWP) REGISTRATION

According to the Indonesian tax office (Direktorat Jenderal Pajak), each resident individual and legal entity in Indonesia must have a Nomor Pokok Wajib Pajak (NPWP), tax identification number.  The NPWP is a personal identification to carry out an individual’s taxation rights and obligations.  This regulation also applies to foreigners.

More than just a tax identification number, the NPWP is also usually required for a variety of other activities such as buying a motorbike, opening a bank account, and getting a credit card in Indonesia.

As a foreigner, you must have a NPWP if you:

Whilst a foreigner may not be obligated to pay Indonesian income tax, the NPWP is still required to prove this to the Ministry for Taxation.  You will need to show your visa stamps and complete monthly statements. If you fit within any of these categories, obtain advice from TraceWorthy Consulting.  We will complete the necessary documents and act on your behalf to ensure you are looked after.

ANNUAL TAX LODGEMENT – PERSONAL

Individual tax reporting is mandatory for every foreigner deemed to be a resident of Indonesia, whether they are employed, self-employed, freelancing or a digital nomad.  The reporting system can be complex and confusing for someone not fluent in Indonesian and unfamiliar with the tax system. 

Also talk with TraceWorthy Consulting about whether your circumstances fit the criteria for double tax treaty credits in either Indonesia or your home country.  You may qualify for a credit granted for tax paid or due abroad in connection with income received or accrued in Indonesia.