How is the calculation of annual income tax for the first year of bussiness ?

Hai dear...

Today i would like to share a little bit about Indonesian Tax matters.

Company which already pay their taxes also have to submit their 1 period of fiscal report to government, their report will be the basic for counting the income taxes that they should pay whether the company have been profit or loss, if you are Indonesian citizen, you will get to pay the income tax article number 29^th(annual tax).

The economy and financial ministry will be hoping so much that the taxable company submits their profitable financial report so that the government has the income especially from their annual tax. But we have known that over a year a company isn’t automatically got their profit isn’t? Sometime most of us been frightening a little bit, when we submit the loss of our taxation financial report.

I already questioning about something (down below) :

1    1.  Do the government have the same acknowledge about company getting profit or loss in just over a year ?

2   2. How does the government know exactly the first year of the company doing their operational activities?

3    3.  So what is the exact regulation from the government?

Here are some explanations:

1.   The government is quite understanding about it. So the government make a decision to release a regulation that says”the company may not getting an inspection on their first year of their operational activities”.

2.    They also consider that your company establishment and the date you are submitting as a taxable company to a government could be have a different time. If that document shows the same time, government will known that your company are indeed just doing an operational activities over a year. But if not, government will be need more an explanation about your company profit because they have an assumption  that your company activities already run more than one year.

3.    Considering from the first explanation that in beginning year of a company is they may not pay the annual tax whether the company has loss or profit refer to their financial statement, so  the company should not pay the final monthly tax. And it also may not pay annual tax (Income tax article 29^th) even the company income more than IDR 4,8 Billion.

I think that’s all my explanation so far. But if you guys still wonder from my explanation about Indonesian tax and regulation, you can have your comment below.

Thank you so much and see you soon…