It is true that nobody likes to pay more tax than they have to, but it is a necessary part of doing business here in Indonesia. It is your legal obligation to do such a thing but can also benefit your business with regards to its stability, the opportunity to build credibility and most importantly, to avoid any major fines that might be coming your way due to lack of compliance. The Indonesian government has set out a series of laws that need to be followed by everyone and non-compliance will lead to penalties, fines and other legal issues.
In order to make sure that you are properly following tax compliance, it’s important to engage with the right kind of service provider that will help to provide you with more accurate record-keeping, will file your taxes for you and disclose anything else. By making sure that your business is tax compliant, your business will be more stable, you enjoy better credibility and there may be government incentives out there that you can take advantage of.
The following are some of the reasons why it is so important to be tax compliant when running a business here in Indonesia.
- It helps to build trust – People are incredibly fussy as to who they do business with nowadays and they do not want to be spending their money with a business that isn’t ethical and isn’t transparent. By making sure that your taxes are paid in full and on time, it lets potential customers know that you are a responsible business enterprise. Not only will you be following the law but it will help to improve upon your overall brand which is incredibly important.
- It gives you financial stability – No business owner wants to be looking over their shoulder because they haven’t submitted taxes or they haven’t completed them properly. Once you let a third-party do all of your taxes for you, you have peace of mind knowing that there will be no penalties coming your way and you will be able to make better business decisions based on your finances.
- You can enjoy government incentives – The Indonesian government tries to provide incentives for businesses and if you are not properly tax registered and tax compliant, you may not be eligible for such things. There are a number of grants and other subsidies that you can take advantage of. By using these same benefits, you can grow your business, create new jobs and be more innovative which will help you to stand out from the many competitors that are out there.
There are a number of consequences to not being tax compliant and they include financial penalties and a government auditor coming to your place of business. The last thing that you want is for a government official to be looking around your business dealings. They have the power to make you pay additional interest on taxes that were due before, and they can take legal action against you.