Corporate Income Tax Payable丨Indonesia Tax Guide 2025 (5)
tax guide Tax Guide Tax guide Corporate income tax corporate income tax Corporate Income Tax Investment in Indonesia 2025-01-14 09:13:10   Page view:1200

This issue's introduction

Corporate income tax

Tax payable

Other



Chapter 1 Corporate Income Tax

Tax payable

The tax payable is calculated by multiplying the taxable income calculated in 2.2.1.5 by the applicable tax rate.

Click to review: Taxable income of corporate income tax | Indonesian Tax Guide 2025 (4)

Taxpayers who are subject to corporate income tax at the assessed profit rate in accordance with the law should calculate the taxable income by multiplying the income by the assessed profit rate.

In addition, taxpayers should declare and pay corporate income tax in advance every month. The monthly advance tax payment amount should be equal to the tax amount in the tax return for the last month of the previous year less the balance of the following amounts:

(1) corporate income tax withheld and paid in accordance with the law;

(2) taxes paid overseas that can be used for tax credits.


other

(1) Provisions for avoiding double taxation

① Corporate income tax paid or payable by resident taxpayers abroad can be offset against domestic corporate income tax in the current year;

② The limit of the allowable credit is the tax amount calculated in accordance with the domestic corporate income tax law on the foreign income.

(2) Provisions for collecting unpaid taxes

Ministry of Finance Regulation No. 61 of 2023 (PMK-61) stipulates the procedures for collecting unpaid taxes, which will take effect from June 12, 2023. The measures covered by the regulation include:

① Restricting or preventing taxpayers from using certain public services when taxes are still not paid after notification;

② Sending a notification letter to a third party to collect taxes through certain procedures.

(3) Tax Bureau assessment regulations

Ministry of Finance Regulation No. 79 of 2023, issued on August 22, 2023, stipulates that for the purpose of tax collection and administration, the tax bureau may assess the following:

① The value of the leased property in the lease of land and buildings;

② The value of tangible assets;

③ The value of intangible assets;

④ The value of the business.

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