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Fiscal Representative in Indonesia

Fiscal Representative in Indonesia

Our fiscal representative in Indonesia shares liability for a company’s VAT obligations, leading to the common industry practice of requesting a security deposit or bank guarantee in favor of the fiscal representative. If you are looking for such a representative, please get in touch with our fiscal representatives in Indonesia. Our agents can also help you set up a company in Indonesia

Fiscal representative for foreign companies in Indonesia

A fiscal representative is a local entity appointed by a foreign company to represent them for tax purposes in Indonesia. This representative plays a crucial role in ensuring compliance with Indonesian tax laws and regulations. Our fiscal representative in Indonesia acts as an intermediary between the foreign company and the Indonesian tax authorities.

The Indonesian government requires foreign companies to appoint a fiscal representative primarily to ensure effective tax administration and enforcement. By having a local fiscal representation in Indonesia, tax authorities can more easily communicate with and regulate foreign entities operating within jurisdiction. It also helps in facilitating tax payments, filings, and other related matters.

If you are interested to know more about the requirements of a fiscal representative in Indonesia, our experts can offer assistance. Also, our company formation agents in Indonesia can offer services. For instance, they can assist you throughout the whole procedure of opening a company in Indonesia

How can our fiscal representative help you? 

Our fiscal representative in Indonesia can provide valuable assistance in several ways:

  • Administrative support: Our team can handle various administrative tasks on your behalf, ensuring compliance with local regulations and requirements.
  • VAT management: We take care of your Value Added Tax (VAT) affairs, navigating the complexities of Indonesian tax regulations and ensuring that your company meets its obligations.
  • Local compliance: By staying up to date with the latest changes in Indonesian tax laws and regulations, our fiscal representative helps your business stay in full compliance, minimizing the risk of penalties or legal issues.
  • VAT and cash flow benefits: Whether you are an EU or non-EU company, our Indonesian fiscal representation allows you to optimize VAT and cash flow advantages wherever possible, contributing to the overall financial health of your business.
  • Risk mitigation: Given the joint liability for VAT owed by a company, our fiscal representative may request a security deposit or bank guarantee. This helps mitigate potential risks in case of any default on financial obligations, providing a layer of protection for both parties.

In summary, our fiscal representative in Indonesia serves as a valuable partner, ensuring that your business operates smoothly, stays compliant with local regulations, and capitalizes on available financial benefits. Moreover, our accountants in Indonesia can make sure that your company is complying with the accounting regulations. 

EU-Indonesia trade relations 

Please find below the EU trade and investments with Indonesia

  • In 2021, the European Union (EU) emerged as the fifth-largest trading partner for Indonesia, showcasing a robust economic relationship;
  • The total trade in goods between the two amounted to €24.7 billion;
  • Notably, Indonesia’s exports to the EU constituted a significant portion of its global export activity, comprising 8.5% and totaling €16.8 billion;
  • On the import side, Indonesia’s goods intake from the EU represented 5.1% of its global imports, amounting to €7.9 billion in 2021. These figures underscore the substantial role the EU plays in Indonesia’s international trade landscape;
  • Conversely, in the context of the EU’s global trade network, Indonesia held positions as the 31st global trading partner, the 26th largest source of imports, and the 37th export destination in 2021. 

This positioning reflects the bilateral nature of the economic ties between the EU and Indonesia, emphasizing the mutual significance of their trade relations. The data underscores the substantial economic interdependence and collaboration between Indonesia and the European Union during the specified period.

Besides this information, you can get practical legal assistance from our immigration lawyers in Indonesia. With their comprehensive assistance, you will be able to immigrate to Indonesia without wasting any excessive time. Contact our lawyers in Indonesia for further questions.