Services

Andersen Tax Strategy

Domestic Tax Planning

As registered tax professionals in Jakarta, Indonesia, we assist clients with their domestic tax strategies, taking into account current tax provisions and applicable treaties to find the most tax-efficient solutions.

International Tax Strategy

Our team of experienced professionals use their technical knowledge and practical experience to assist companies with tax optimization across borders, while avoiding common tax risks.

Our global tax planning services include advice on and assistance with the efficient structuring of clients’ worldwide operations from both the local and the global perspective. This includes strategic moves on cross-border transactions and ways to optimize profits, including the best structure to locate royalty and intellectual property rights.

Transfer Pricing

With globalization bringing increased scrutiny by the tax authorities on related party and cross-border transactions, it is more important than ever for multinationals to find an efficient structure while ensuring compliance with transfer pricing regulations to avoid unnecessary tax exposure.

With their in-depth experience as transfer pricing auditors and practitioners with the Indonesian tax authority, our partners at Andersen in Indonesia are able to help clients manage the risks with practical transfer pricing solutions covering clients’ entire business operations and targets.

Transfer Pricing Documentation Preparation and Analysis

Our transfer pricing professionals assist with fulfilling documentation requirements for local files, master files, and country-by-country reporting. We provide analysis of the arm’s length pricing of related party transactions on a strategic and consistent basis, to enable a client’s worldwide business to achieve effective and efficient international tax transaction goals.

Transfer Pricing Planning and Review

We offer strategic transfer pricing planning and review services to ensure clients find the best strategy and structure for their cross-border and related party transactions in terms of both efficiency and compliance. We conduct benchmarking studies and tailor our assessment methodologies to design intercompany transfer pricing policies that fit each business’s unique needs.

Transfer Pricing Reviews and Disputes

We support clients in resolving their transfer pricing disputes and reviews with the tax authorities efficiently and effectively, including with tax objections, tax appeals, mutual agreement procedures and advanced pricing agreements.

Andersen Tax Compliance

Our tax compliance services cover the full range of monthly and annual taxes—corporate income tax, personal income tax, employee income tax, value added tax, and withholding tax.

Tax Review

Our tax review services are a useful diagnostic tool. Our tax compliance review identifies and analyzes the potential tax risks arising from each transaction or business activity and calculates the tax exposure.

Annual Tax Compliance

Andersen in Indonesia will assist with preparing the tax calculations from the data provided, and completing and filing the annual tax returns and the applicable tax payments, including:

• Annual Income Tax Returns for Personal Taxpayers (Forms 1770, 1770S, and 1770SS)
• Annual Corporate Income Tax Return (Form 1771, including 1721 A1)

Monthly Tax Compliance

Late or incorrect monthly tax returns can result in large tax liabilities and penalties.

Our team assists businesses with fulfilling their monthly tax obligations in a timely and efficient manner, managing the process and ensuring compliance with the tax provisions. We prepare the tax calculations from the data provided, and then complete and file the monthly reports and tax payments.

We also advise on specific tax issues for monthly reports, including:

• VAT
• Income Tax Art 4 (2), Art 15 – Final
• Income Tax Art 21/26, Art 22, 23/26
• Income Tax Art 25

Tax Disputes

Tax Review Assistance

Tax reviews can be stressful and confusing, and many taxpayers are not prepared when the Tax Office notifies them. Let Andersen in Indonesia assist you to ease the burden, clarifying the issues and the process, and assisting with responding to the tax auditors’ requests.

Tax Objection Assistance

The firm supports clients in formally challenging tax assessments issued by the tax authorities by conducting a thorough review of the assessment, evaluating the legal and technical merits of the case, and identifying defensible grounds for objection. We prepare comprehensive and well-substantiated objection letters, supported by relevant documentation and financial analysis, and represent clients in communications and discussions with the authorities. Our focus is to protect our clients’ interests, ensure accurate application of the tax regulations, and pursue a fair and optimal resolution in a timely and compliant manner.

Tax Court Assistance

Our Tax Court assistance services, including tax appeal representation, provide end-to-end support to clients in resolving tax disputes through litigation. We perform a comprehensive assessment of the case, formulate a robust legal and technical strategy, and prepare persuasive appeal briefs supported by detailed financial and regulatory analysis. Our team represents clients throughout the Tax Court proceedings, including hearings and evidentiary submissions, ensuring strict compliance with procedural requirements while advocating effectively to secure a fair and optimal outcome.

Global Minimum Tax Services

Our team assists multinational groups with the implications of the Global Minimum Tax (“GMT”), supporting them in navigating the complexities of the OECD Pillar Two framework and its implementation in Indonesia and other jurisdictions. As countries adopt GMT rules to ensure a minimum effective tax rate, businesses face significant compliance, reporting, and structural implications, both locally and globally. We support clients by assessing their exposure to GMT, modeling effective tax rate calculations, reviewing group structures, and advising on compliance obligations and strategic planning. Our objective is to help organizations manage risks, maintain compliance across jurisdictions, and align their global tax strategy with evolving international standards.

Payroll Services

Our payroll services help businesses manage their payroll obligations accurately, efficiently, and in full compliance with prevailing employment and tax regulations. Given the complexities of payroll calculations, income tax withholding, social security contributions, and reporting requirements, reliable payroll management is essential to mitigate compliance risks and maintain employee trust. We assist clients with end-to-end payroll processing, tax calculations and filings, pay slip preparation, statutory reporting, and advisory support on employment-related tax matters, ensuring accuracy, confidentiality, and timely execution.

Andersen Legal Services

Our legal services are designed to provide clear, practical, and commercially-focused solutions to businesses operating in Indonesia. We assist clients with navigating regulatory requirements, corporate structuring, transactions, compliance matters, and dispute resolution, with a commitment to precision, responsiveness, and the highest professional standards.

Representative cases:

• Assisted with a US$9 million private equity loan for a major retailer in luxury and international brand watches.
• Acted on a US$30 million hotel spin-off deal involving a Diamond star hotel located in Nusa Dua, Bali that was spun off to a publicly-listed construction and property development company.
• Assisted with a US$20 million acquisition of a textile factory in Central Java, Indonesia by a foreign investment company owned by Indian-based investors.
• Assisted with the acquisition by a China-based state-owned company of an Indonesian-based Korean FDI company involved in nickel mineral smelting,and supported the purchase of additional land for expansion.
• Assisted with the acquisition of and loan transaction for four Indonesian telecom companies in the dark fiber optics infrastructure sector.
• Assisted on the US$23 million project financing of an export-import company, supported the lender, a foreign bank in Indonesia.
• Assisted on the US$20 million project financing of the construction of a 3-star hotel.
• Involved in the acquisition of four coal mines in East Kalimantan.
• Involved in the acquisition of a listed coal mine trading company.
• Involved in various M&A transactions of local mining and mineral companies by local as well as international investors.
• Involved in various M&A transactions of renewable energy plantation companies.
• Involved in the sale and purchase of renewable energy products.
• Involved in the structuring of a retail private bond issue for a renewable energy company.
• Involved in the setting up of a carbon credit structure for a wood pallet-based industry.

Market Entry and Company Establishment Services

We assist investors and entrepreneurs in establishing a business presence efficiently and in full compliance with applicable regulations. Setting up a company in Indonesia requires careful consideration of the legal structure, licensing, capital requirements, and tax registration, all of which are critical to ensuring a smooth and sustainable operation. We support clients throughout the incorporation process, including entity structuring advice, preparation of incorporation documents, coordination with notaries and other relevant authorities, business licensing, tax and VAT registration, and post-incorporation compliance guidance, enabling clients to commence operations with clarity and confidence.

Immigration Services for Expatriate Employees

Indonesia’s immigration policies are very strict, and failure to comply with them will lead to termination of the expatriate’s stay or work permit, and often deportation. We assist clients with navigating the regulatory requirements to ensure their expatriate employees have the proper documents and correct status to legally work in Indonesia.

Generally, expatriates must have both a KITAS—a temporary residency card—and a separate work permit. Securing a work permit in Indonesia can be tedious and time consuming, requiring a number of distinct steps to complete as described below. We manage the process for you, ensuring full compliance to avoid any future issues.

• The sponsor company must submit a proposal for an RPTKA from the Indonesian Ministry of Manpower.
• The sponsor company also needs to go through the Pre-RPTKA Approval/Pre-work Permit process, after which it will be notified of the length of time the expatriate can stay and work in Indonesia.
• The DKP-TKA (Development Funds in Exchange for Hiring a Foreign Worker) payment of US$100/month must be paid in advance.
• If all is in order, the Ministry of Manpower will issue the sponsor company an approval of its RPTKA proposal.
• With the approval of the RPTKA, the expatriate can now work legally in Indonesia.
• With such work permit, the immigration office in Indonesia will issue the expatriate a VITAS.
• The VITAS automatically converts into a KITAS upon arrival in Indonesia.