Foreign-owned companies in Indonesia can adopt a January–December calendar year or a different 12-month fiscal year. Multinational groups may align their Indonesian subsidiary’s financial year with their overseas parent to simplify consolidated reporting.
Choosing Between a Calendar Year and a Fiscal Year
The calendar year generally suits companies without overseas consolidation requirements. An alternative fiscal year may benefit multinational groups operating on different reporting schedules.
Align your Indonesian subsidiary’s tax year with your global reporting schedule. Contact MAP Resources Indonesia at info@mapresourcesindonesia.com
A US-based parent company with a March financial year-end, for instance, may adopt an April–March reporting period for its Indonesian subsidiary, reducing additional reporting requirements during group consolidation.
Companies with seasonal operations may prefer a financial year-end outside their busiest trading period.
Setting or Changing Your Company’s Tax Year
Companies adopting a non-calendar financial year should establish their intended reporting period during initial tax registration.
Changing an existing tax year requires approval from Indonesia’s Directorate General of Taxes (DGT). Applications must be submitted electronically through Coretax at least one month before the proposed new financial year begins.
Applications must include a commercial justification and a declaration that the change is not intended to shift profits or losses to reduce tax liabilities.
Companies applying for a second or subsequent change must generally have maintained their existing accounting method and financial year consistently for at least five tax years.
A change may create a shortened transitional accounting period requiring a separate corporate income tax return.
Corporate Tax Filing and Financial Reporting Deadlines
Annual corporate income tax returns are generally due within four months after the company’s tax year ends.
A company using the calendar year generally files by April 30 of the following year, while a company with a March 31 financial year-end generally files by July 31.
Planning to change your company’s financial year? Email info@mapresourcesindonesia.com for assistance
Companies using a non-calendar financial year should verify that their registered accounting period in Coretax matches their actual financial year.
The financial year determines the reporting period for annual financial statements, affects applicable financial reporting requirements and influences the company’s statutory audit schedule, where applicable.
Monthly VAT reporting and withholding tax obligations retain their respective deadlines.
Align Your Company’s Tax Year With MAP Resources Indonesia
MAP Resources Indonesia assists foreign investors with tax registration, financial year changes and aligning Indonesian tax reporting with overseas group requirements. Contact us at info@mapresourcesindonesia.com.
