What a company files in Indonesia [ID]

Every corporate taxpayer files, and nothing in the provisions read sets a turnover floor below which the annual return is not due. The duty follows from being a «Wajib Pajak badan» — a corporate taxpayer — and article 3 paragraph (3) letter c states the deadline for that class without any qualification by size, sector or result. A year that ends in a loss does not by itself remove the filing. Two things the articles read do not settle, and neither is asserted here. The first is the position of a company that has been struck off the register of taxpayers or whose registration has been revoked, because the deadline provision addresses taxpayers and not the act of deregistration. The second is the treatment of a part-year — the law's «bagian Tahun Pajak» — for a company incorporated or liquidated mid-year: the term exists in the law, but the articles read do not state how the four-month count applies to it.

Extensions and exceptions: An extension of up to two months is available as of right, by notice rather than by permission, but it is not free. Article 3 paragraph (4) lets the taxpayer extend the filing period «untuk paling lama 2 (dua) bulan dengan cara menyampaikan pemberitahuan secara tertulis atau dengan cara lain kepada Direktur Jenderal Pajak» — for at most two months, by giving written notice or notice in another manner to the Director General of Taxes, on terms set by regulation of the Minister of Finance. The price of that extension is set in the next paragraph: article 3 paragraph (5) requires the notice to be accompanied by «penghitungan sementara pajak yang terutang dalam 1 (satu) Tahun Pajak» — a provisional computation of the tax due for the year — and by the payment slip evidencing settlement of the shortfall. In other words the filing moves and the money does not. Interest under article 9 paragraph (2b) runs from the end of the filing period to the date of payment, so an extension taken without paying the provisional amount buys time at a monthly cost.

No date can be derived here. This deadline runs from something this page does not know — the financial year the company itself elects, or an event only you can date. What is published is the rule, not the day.

The threshold is one figure and two measures. The regulation of the Minister of Finance defines a small entrepreneur as one whose supplies of taxable goods and services in a book year do not exceed «Rp4.800.000.000,00 (empat miliar delapan ratus juta rupiah)», and it measures that by «jumlah peredaran bruto dan/atau penerimaan bruto» — gross turnover and/or gross receipts, whichever applies to the business. The duty arises when the figure is passed, not when the year ends: article 4 paragraph (1) speaks of the month within the book year in which the running total «melebihi» — exceeds — the amount, which is why the test recorded here is a strict excess and not equality. The underlying obligation is in article 3A paragraph (1) of the VAT Law, which requires an entrepreneur making taxable supplies to report its business for confirmation «kecuali pengusaha kecil yang batasannya ditetapkan oleh Menteri Keuangan» — except a small entrepreneur, whose threshold the Minister of Finance sets. Two points that follow from the provisions read. A company below the threshold may still ask to be confirmed, and once confirmed it takes on the monthly return and the charging duty in full. And an exempt supply is not a taxable supply: the figure is measured on taxable supplies, so a business whose output is outside the tax does not approach the threshold by growing.

No date can be derived here. This deadline runs from something this page does not know — the financial year the company itself elects, or an event only you can date. What is published is the rule, not the day.

The duty follows the status, not the turnover: every entrepreneur confirmed as taxable files, from the month in which the status begins. That is why no threshold is recorded here even though the status itself is reached by a threshold — the figure belongs to the registration record on this page, and repeating it here would wrongly suggest that a confirmed company below Rp4.800.000.000,00 stops filing. It does not. The same point cuts the other way for a company that registered voluntarily while under the threshold: it files monthly like any other confirmed entrepreneur. A month with no taxable supplies at all does not remove the return on anything read; what the provisions read do not state is the position of a company whose confirmation has been revoked part-way through a month, and that is not asserted here.

No date can be derived here. This deadline runs from something this page does not know — the financial year the company itself elects, or an event only you can date. What is published is the rule, not the day.

The duty is addressed to the limited liability company of the Company Law — the perseroan terbatas — and it carries no threshold: nothing in the articles read makes the annual report or the annual meeting depend on size, turnover or whether the company traded at all. What the report must contain is itemised rather than left to practice. Article 66 paragraph (2) lists at least: the financial statements, comprising at least the closing balance sheet of the year just ended in comparison with the preceding year, the profit and loss account for that year, the cash flow statement and the statement of changes in equity with the notes; a report on the company's activities; a report on the performance of social and environmental responsibility; the details of problems arising during the year that affected the business; a report on the supervision carried out by the board of commissioners; the names of the members of both boards; and the salaries and allowances of both boards for the year. Article 66 paragraph (3) requires the financial statements to be drawn up in accordance with financial accounting standards. One limit of this record should be read carefully. The articles relied on are those of the Company Law as they address a company having a general meeting and a board of commissioners; the simplified single-shareholder company for micro and small business introduced into Indonesian law later is not covered by anything read here, and no position on it is asserted.

Extensions and exceptions: No extension on application appears in the articles read, and the six-month period is expressed as an outer limit rather than a date: article 66 paragraph (1) requires the annual report to go to the general meeting «dalam jangka waktu paling lambat 6 (enam) bulan setelah tahun buku Perseroan berakhir» — at the latest within six months after the company's financial year ends — and article 78 paragraph (2) uses the same words for the meeting itself: «RUPS tahunan wajib diadakan dalam jangka waktu paling lambat 6 (enam) bulan setelah tahun buku berakhir». A meeting held earlier in the period is equally in time. What the articles read do not provide is any mechanism to move the limit; what they provide instead is a remedy if the board lets it pass, which is described under what happens if it is missed.

No date can be derived here. This deadline runs from something this page does not know — the financial year the company itself elects, or an event only you can date. What is published is the rule, not the day.

The threshold recorded here is one of six independent triggers, and it is one figure measured on either of two quantities. Article 68 paragraph (1) obliges the audit where: the company's business is to collect and/or manage funds from the public (letter a); the company has issued debt acknowledgements to the public (letter b); the company is a public company (letter c); the company is a persero, a state-owned limited company (letter d); the company «mempunyai aset dan/atau jumlah peredaran usaha dengan jumlah nilai paling sedikit Rp50.000.000.000,00 (lima puluh miliar rupiah)» — has assets and/or a volume of business of at least fifty billion rupiah (letter e); or an audit is required by legislation (letter f). Letter e is the limb recorded in the threshold field, and the wording matters twice over. It is «dan/atau», and/or: assets alone will do it, turnover alone will do it, and a company need not pass both. And it is «paling sedikit», at least, which is why the test recorded is not-less-than rather than strict excess. That is also why the metric here is assets-or-turnover rather than either one by itself: a record that printed only turnover would tell a company whose balance sheet alone crosses the line that the audit does not concern it. One further feature of the figure deserves notice. Article 68 paragraph (6) provides that a reduction of the amount in letter e is to be fixed by Government Regulation, so the number can be moved downward by subordinate legislation without the Law being amended, and that is the reason this record is marked as the kind that goes out of date rather than the kind that sits still.

Extensions and exceptions: The six months recorded here are not the audit's own deadline, and that distinction should be read before the figure is relied on. Article 68 gives the audit duty no date of its own: it says what must be audited and who receives the report, not by when. The six months come from the duties the audit has to be ready for — article 66 paragraph (1), which puts the annual report including the financial statements before the general meeting at the latest within six months after the financial year ends, and article 78 paragraph (2), which fixes the same outer limit for the meeting itself. Article 68 paragraph (2) is what makes that limit binding in practice rather than advisory: where the audit duty is not met, «laporan keuangan tidak disahkan oleh RUPS» — the financial statements are not ratified by the general meeting. So the audit has to be finished in time for a meeting that itself has to be held within six months, which is a derived outer limit and not a statutory date, and that is why it is recorded as indicative. No extension mechanism appears in the articles read. The one express date in article 68 belongs to a different step and only to part of the group: the newspaper publication under paragraph (4), due under paragraph (5) within seven days after ratification by the meeting.

No date can be derived here. This deadline runs from something this page does not know — the financial year the company itself elects, or an event only you can date. What is published is the rule, not the day.

Every corporation is caught, with no threshold and no exemption by size. Article 2 paragraph (2) of the Presidential Regulation lists the forms covered — «perseroan terbatas», «yayasan», «perkumpulan», «koperasi», «persekutuan komanditer», «persekutuan firma» and «bentuk korporasi lainnya», other corporate forms — and article 1 number 1 defines a corporation broadly as «kumpulan orang dan/atau kekayaan yang terorganisasi, baik merupakan badan hukum maupun bukan badan hukum», an organised collection of persons and/or assets, whether or not a legal person. The annual update recorded here is the third of three distinct duties and the only recurring one, so the other two should be read alongside it. First, determining the beneficial owner at all: article 3 paragraph (1), «Setiap Korporasi wajib menetapkan Pemilik Manfaat dari Korporasi», and article 14, which requires the corporation to apply the know-your-beneficial-owner principle and to appoint an officer or employee to do so and to produce the information on request from the competent authority and from law enforcement. Second, the initial submission: article 19 paragraph (2) requires a corporation to determine and submit the information «paling lama 7 (tujuh) hari kerja» — within seven working days — counted from its receipt of its business licence or registration certificate. Third, changes: article 20 paragraph (2) requires any change in the beneficial owner information to be reported «paling lama 3 (tiga) hari kerja sejak terjadinya perubahan», within three working days of the change. The annual update does not replace the three-day duty for changes; it runs alongside it, and a year in which nothing changed still carries the update. A separate record-keeping duty sits in article 22, which requires documents to be kept for at least five years.

No date can be derived here. This deadline runs from something this page does not know — the financial year the company itself elects, or an event only you can date. What is published is the rule, not the day.