Indonesia Advisory

Lets be registered! Encourage your Employee to have Tax Registration Number (NPWP)!

The changes of regulation that applies in 2009, will give many benefit of tax payer with NPWP.
Benefit of registering your self or employee to get tax registration number will be benefiting you the following:

1. No Fiscal of IDR 1,000,000, means no prepaid tax (or no fiscal cost) for company when sending the employee on overseas business trip. This will be helping you to avoid tax overpayment or can avoid expensing off the fiscal if you are in loss position when avoiding tax overpayment.
2. Personal Tax Payer can go overseas cheaper by Rp 1,000,000 (at NO more fiscal), meaning that going to Asean countries approximately at the same cost as going Bali or domestic trip.
3. For Employee who is getting their salary in Gross, meaning LOWER tax will be applied compare to ones without NPWP!! Lower TAX!!
4. For Employer, who is paying their employee based on Net Salary, meaning LOWER Tax Allowance (Lower Employment Cost!), same impact of employee with NPWP will be at Lower tax rate.

The above is part of summary from the Income Tax part 1.