The equity agreed to be contributed must be paid up. Tax returns must be lodged in Bahasa Indonesia and in Rupiah and any outstanding tax liabilities paid in Rupiah. Branch operations of foreign companies will be permitted in certain circumstances only - e.g. under special license from the Department of Public Works, which enables work to be done on a project basis by a foreign contractor. Special rules apply for the Oil and Gas sector, Where foreign companies usually operate as Production Sharing Contractors to Pertamina and to the coal and hard rock mining industry were Contract of Work agreements apply. In 1984 and again in 1995, Indonesia completely reformed its tax system.
Non resident are subject to tax on income which is received or accrues from Indonesia.
25 Million to Rp. The cost of providing Benefits in Kind to employees is not deductible to an employer. This covers housing, wages for domestic servants, children's education, club fees, home leave, spouse's car, etc. Where a person is seconded to Indonesia on a full package of expatriate benefits, these costs can be substantial.