Simple Tax and Accounting Solutions for Businesses in Bali
Our financial experts will optimise your financial accounts and ensure that you only pay the minimum amount of tax for your circumstances. Our accountants stay on top of changes to rules and regulations in Bali to ensure compliance with Indonesian laws.Contact us
Tax reporting with Emerhub
- Withholding Tax Computation
- In Bali, taxpayers must withhold taxes when conducting certain transactions. It can be confusing to differentiate between what transactions apply. Emerhub experts know, and we’ll take care of it for you.
- Employee Tax and BPJS
- Employers in Bali are responsible for withholding taxes on behalf of their employees. Employers must also make contributions to Indonesia’s social security and healthcare programs. Here at Emerhub, we love taking care of your employees. So you and your employees can feel secure.
- Tax Advisory
- Expat businesses involve complex cross-border taxation questions for both business and personal tax matters. Be prepared with Emerhub, we’ll guide you through this confusing area of tax in Bali.
- Payroll Management
- Managing payroll in Bali involves several regulations and taxes. Let Emerhub’s payroll professionals take care of that for you. We calculate holiday and overtime pay and will handle everything from computation to the distribution of payroll.
Accounting and Bookkeeping with Emerhub
We believe that keeping your company compliant is more than just filing mandatory tax reports. Our qualified and registered accountants can keep your accounts in order. Our high standard of bookkeeping will enable you to monitor the performance of your business. Emerhub’s bookkeeping and accounting service includes but its not limited to:
- Setting up accounting software
As a Xero partner, working with Emerhub gives you access to one of the most popular accounting softwares in the world.
- General ledger
Maintaining a complete record of all the financial transactions of your business.
- Opening bank account in Bali
We will assist you in opening local bank accounts reconsolidate them for the bookkeeping.
- Monthly chart of accounts
Collecting a complete listing of every account in the general ledger of a company.
Emerhub provided important insights on how to properly organize our company structure. They supported us in getting our corporate KITAS and staying compliant with tax reporting. The team is supportive, professional, and fast.
I have had good experiences with Emerhub in setting up our overseas entities. The team is generally responsive and professional. Some fees are a bit on the high side, but the positive thing is that they offer a wide range of services which gives me a one-stop shop as a customer.
Tell us briefly about your company and your plans in Bali and our consultants will get back to you within a working day.
Laporan Kegiatan Penanaman Modal (LKPM) stands for the Investment Activity Report. Indonesia’s Investment Coordinating Board (BKPM) strictly requires certain businesses to submit this. Failure to do so will result in sanctions. Emerhub will prepare and submit your LKPM so you can comply with local regulations.
Who needs to submit the Investment Activity Report (LKPM)?
Submitting the LKPM is a requirement for companies investing more than IDR 500,000,000 (approximately USD 34,000).
The minimum capital requirement for foreign-owned companies is IDR 2.5 billion (approx. USD 170,000). As such, all foreign-owned companies must submit LKPM. The same holds true for locally-owned companies that sponsor KITAS. The minimum capital requirement for such is IDR 1 billion (approx. USD 68,000).
Note that companies in select industries are exempt from this requirement. Companies with expired operating licenses also do not need to submit LKPM.
Investment Activity Report (LKPM)
The LKPM must contain information about your investment, source of funds, and new employees, among other things. You must also indicate any issues or setbacks the company is facing. In addition to that, you must also include your company’s legal documents.
The submission of LKPM is quarterly or bi-annually depending on the company’s operational status. Failure to submit will result in sanctions including losing access to the government’s online systems.
LKPM Reporting by Emerhub
Emerhub can help you with LKPM reporting. Our team will prepare an accurate investment activity report for your company. We will also make sure to submit the report to BKPM on time to avoid sanctions. We can also assist companies that have already missed the LKPM deadline.
Get in touch with us by filling out the form below.
Employers in Indonesia are responsible for withholding taxes on behalf of their employees. Employers must also make contributions to Indonesia’s social security and healthcare programs.
Employee Taxes in Bali
Per Indonesian regulations, employers must withhold taxes when paying employees. The tax rate ranges from 5% to 30% depending on how much the employee makes.
Employers must also withhold taxes on severance pay. The rate for severance pay over IDR 50,000,000 ranges from 5% to 25% depending on the amount. Severance pay that is IDR 50,000,000 or lower is non-taxable.
Social Security and Health Insurance for Employees in Bali
Badan Penyelenggara Jaminan Sosial (BPJS) is Indonesia’s social insurance administration. Employers must make mandatory contributions to the BPJS for each employee.
Employees must also make contributions to BPJS. As such, the employer must withhold contributions from the employees’ wages. Note that contributions are also mandatory for foreigners working in Bali for at least 6 months.
BPJS contributions will go toward:
- Working accident insurance
- Death insurance
- Pension plan
- Old age savings
How Emerhub Can Help with Employee Taxes and BPJS
Emerhub can help you manage your employees’ taxes and BPJS contributions. Our services include the following:
- Calculating withholding taxes for all employees
- Preparing and submitting your business’ tax reports
- Paying taxes on your behalf
- BPJS registration for your company and employees
- Calculating and paying BPJS contributions on your behalf
Emerhub’s accounting team will be happy to help you with employee tax and BPJS computation in Bali. We also offer other tax and payroll management services. Fill out the form below to get in touch with us.
In Indonesia, taxpayers must withhold taxes when conducting certain transactions. Emerhub will help you determine and compute withholding taxes in Bali.
Withholding Tax in Bali
There are different kinds of payments on which you must withhold taxes. The tax rate also varies depending on the type of payment.
Examples of payments on which there are withholding taxes among others:
- Fees for certain services (ex. Technical, management, consulting, etc.)
- Rental and other fees for the use of property
Payments to non-residents on which there are withholding taxes include the following among others:
- Sale or transfer of certain assets
- Any payment to a non-resident recipient (except for the purchase of goods)
- Sale of shares of a non-listed listed company
Computing Withholding Taxes with Emerhub
Emerhub offers a range of tax services in Bali so you can comply with Indonesia’s tax regulations. Our accounting team will guide and advise you regarding transactions on which there are withholding taxes.
Emerhub’s accounting team will do the following for you:
- Determining and calculating withholding taxes on your transactions
- Calculating your personal income tax
- Calculating your company’s corporate income tax
- Preparing and submitting tax reports on your behalf
- Paying your taxes on your behalf
Fill out the form below to get in touch with us. We will be happy to help you with your tax concerns.
Tax reporting is a necessary part of doing and managing a business. Emerhub provides services to help you file taxes for your business. Our team will ensure that you adhere to tax regulations in Bali.
Corporate Income Tax
Corporate income tax is part of the monthly tax report that businesses in Bali must submit. The corporate income tax rate for businesses in Bali ranges from 11% to 22% depending on the business’s gross income. Newer companies with a gross income of IDR 4.8 billion or less only pay 0.5% in corporate income tax.
“Tourism taxes” is a term often used for local taxes. Services provided in hospitality businesses are subject to local taxes. Local tax rates in Bali vary depending on the type of hospitality business. They also vary across regencies and cities in Bali.
Businesses charge this tax to customers and must add it to the invoice. Note that even if the business does not pay these taxes, it is part of their tax report.
Tax Reporting by Emerhub
Emerhub offers tax services to help you maintain compliance with Indonesian tax laws. Outsourcing tax services to Emerhub is a cost-effective solution to tax reporting. Our accounting team stays on top of changes to rules and regulations. We will ensure that your tax report is always accurate.
Our tax services include:
- Computing your business’ taxes
- Preparing tax reports
- Preparing statutory financial statements
- Payment of taxes
Fill out the form below to get in touch with us. Our accounting team is ready to help you with your tax concerns in Bali.
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Let's grow your business in Bali
Get in touch with Emerhub by filling in the form below and our consultants will reach out to you within a few working hours.