Tax Compliance
Tax compliance involves individuals or businesses meeting their tax obligations by calculating taxable income, paying taxes, and accurately reporting financial information according to jurisdiction-specific laws and regulations.
Why tax is important?
Taxes are a legal requirement for all citizens, including businesses operating inside a country's borders. In terms of corporate tax compliance, some of the advantages include the company's ability to operate legally. With this legality, a business unit's credibility rises, followed by the structure of the company's financial projections in the future. This has an impact on your firm if you wish to request for a bank loan (up to 60 million Rupiah) to help you grow your business.
What will we do to assist you?
Tax compliance services will be provided by RED to assist clients in preparing and delivering the duty of taxpayers to comply with their taxes obligations in a timely and accurate way. The following are examples of compliance services:
Monthly Tax Return:
- VAT (Value Added Tax)
- PPh Art. 4 (2) Final (Rentals on Land and / or Buildings)
- PPh Art. 4 (2) Final (Certain Gross Turnover)
- PPh Art. 15 (Shipping & Flight)
- PPh Art. 21 & 26 (Employee Salary / personal income)
- PPh Art. 22 (Imported Goods, Customs etc.)
- PPh Art. 23 & 26 (Tax on Services)
- PPh Art. 25 (Company)
Annual Tax Return:
- Ending period December PPh. Art. 21 & 26 (Form 1721)
- Annual Tax Return of Individual Taxpayers (Form 1770, Form 1770S, Form
1770SS) - Annual Tax Return of Corporate Taxpayers (Form 1771)
- Annual and monthly corporate income tax returns
- Annual and monthly employee (payroll) income tax returns
- Monthly withholding tax returns
- Monthly VAT returns
FAQ's
Most question asked on this services:
Non-compliance with tax laws can lead to various penalties, such as fines, interest charges on unpaid taxes, or even legal action, including audits and investigations by tax authorities. Persistent non-compliance may result in severe consequences like asset seizure or imprisonment.
To ensure tax compliance, individuals and businesses should keep accurate financial records, understand applicable tax laws, file tax returns on time, and pay the correct amount of taxes owed. Seeking advice from tax professionals can also help navigate complex tax regulations.
Common mistakes include inaccuracies in reporting income, failing to claim eligible deductions or credits, missing filing deadlines, underreporting income intentionally or unintentionally, and disregarding changes in tax laws that may affect one's tax obligations. Regularly reviewing tax filings can help identify and rectify errors.