Foreign-owned companies can change tax consultants in Indonesia, but responsibility for filings, payments, records, system access, and unresolved tax matters needs to be clearly divided between the outgoing and incoming consultant.
Establish the Tax Position and Handover Cut-Off
Before the handover, the company should establish the last tax period completed by the outgoing consultant. It should identify which returns have been filed, which payments have been made, and which returns, payments, corrections, or reconciliations remain outstanding.
Existing tax overpayments, underpayments, refund claims, and unresolved balances should also be identified. The same applies to ongoing correspondence with the Indonesian tax authority, tax audits, objections, or other unresolved tax matters.
Changing tax consultants in Indonesia? Contact MAP Resources Indonesia at info@mapresourcesindonesia.com to discuss the transition
The company should determine which consultant will complete any tax period or outstanding matter that crosses the handover date, particularly where the transition takes place close to a filing or payment deadline.
Transfer Tax Records and Tax-System Access
The incoming consultant needs the records behind the company’s previous tax filings. These can include filed returns, tax payment records, calculations, supporting schedules, transaction documents, and relevant correspondence with the tax authority.
A filed return shows what the company reported but may not explain how its VAT, withholding tax, or corporate income tax was calculated. The underlying calculations and working files should therefore form part of the handover where relevant.
The company should also confirm that the incoming consultant has been properly appointed and given the Coretax roles required for the work assigned to it. Coretax roles or authorizations held by the outgoing consultant should be reviewed and changed or removed where they are no longer required.
Reconcile Tax Records with the Accounts
The company’s tax records should be checked against its accounting records. VAT, withholding tax, corporate income tax, and other relevant tax balances should be traceable to the transactions and records supporting them.
Where the accounts do not agree with previously filed tax information, the difference should be identified rather than carried forward without explanation. It may result from timing differences, accounting adjustments, missing information, or an issue requiring correction.
Need support taking over an existing Indonesian tax position? Contact MAP Resources Indonesia at info@mapresourcesindonesia.com
Differences from earlier periods should be separated from transactions arising after the new consultant takes responsibility. This prevents historical discrepancies from being treated as issues arising under the new engagement.
Complete the First Filing Cycle with the New Consultant
The company should identify the first returns and payments for which the incoming consultant is responsible. The consultant should have the accounting data, supporting documents, and Coretax access needed to prepare and submit them.
Missing records, unexplained opening tax balances, or unfinished matters from the previous consultant should be identified separately during this first filing cycle rather than being mixed with the new period.
Changing Tax Consultants with MAP Resources Indonesia
MAP Resources Indonesia supports foreign-owned companies transferring Indonesian tax compliance from another provider, including reviewing the existing tax position, taking over the relevant records, and addressing outstanding matters. Contact us at info@mapresourcesindonesia.com.
