Paying tax

[sumyunggai]

From what I can see all of the small businesses (some making a few M) in my area don't bother with taxation at all. They just run their business and that's it.

They have bank accounts with reasonable sums of money going in and out, and go on foreign trips to Saudi Arabia and what not. But no taxes.

I'm curious how long this remains sustainable. Personally speaking I don't mind paying tax, but I don't want to pay it if nobody else is!

 

[Anglian]

My Daughters little shop has to pay one million rupiah a month, she was required to pay nothing last year, me still nothing

 

[dafluff]

How do you make the assessment whether they pay tax or not?

 

[Anglian]

How do you make the assessment whether they pay tax or not?

They have to go to the tax office for assessment, clutching their tax forms, an assessment is made, if they never go to a tax office, they probably will never pay tax,

 

[jstar]

From what I can see all of the small businesses (some making a few M) in my area don't bother with taxation at all. They just run their business and that's it.

You're right of course, but don't kid yourself, many of the bigger businesses do the same. And hey, now you got away with a 5% fine!

But probably you are mainly talking warungs etc.? They often are exempt.

 

[sumyunggai]

You're right of course, but don't kid yourself, many of the bigger businesses do the same. And hey, now you got away with a 5% fine!

But probably you are mainly talking warungs etc.? They often are exempt.

Things like guesthouses with restaurants. Turnover easily several M so should pay VAT and income tax as well.

 

[atlantis]

Things like guesthouses with restaurants. Turnover easily several M so should pay VAT and income tax as well.

Most of the business you describe would be exempted of paying the VAT (unless if they report an omset superior to Rp 4,8 M per annum) and very certainly only pay the PPh Final of 1% of their DECLARED omset.

Considering that most transaction occur in cash, I would nt be surprise to read tbat their accounting books show a pretty poor level occupancy and a not so busy kitchen.