Ranking in the world’s top five in population numbers, Indonesia continues to record a stable economic growth. The archipelago of over 17.000 islands is home to 240 million people and blessed with a most remarkable natural wealth. Its relatively low employment costs and the myriad of enterprise forms make it one of the most attractive investment options in the Asia Pacific Region.
The Government welcomes investments with deregulatory measures and favourable taxation regulations. These perks can be real game changers and can differ in each zone based on capital, employment, research and development, or the level of domestic content. Through tax treaties held with many foreign countries, the Indonesian Government aims to avoid double taxation.
Since the Indonesian Government will continue to depend on private sector investors to take advantage of the vast business potential, it is likely to further reduce the investment burden by offering new tax benefits. However, it may prove challenging to truly comprehend which tax regulations apply and when, businesses often report the need for extensive detailed knowledge and expertise in dealings with complicated administrative requirements and long procedures in order to enjoy better rates.
Organizations need not become expert in the implementation of tax regulations nor be proficient in the various calculation formulae themselves, instead they can focus on their investment and rely on our team of professionals that pursues insights for and with clients.
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