Obligations of Corporate Taxpayers and Corporate PKP In Indonesia, corporate taxpayers and corporate PKP (Pengusaha Kena Pajak or VAT-registered businesses) have several obligations they must fulfill to comply with the country’s tax laws and regulations. These obligations are set by the Directorate General of Taxes (Direktorat Jenderal Pajak or DJP).

Corporate Taxpayers

A Corporate Taxpayer refers to a group or category based on its type and legal status, including its business classification, whether it is a small, medium, or large enterprise. This is as stipulated in Article 1 of Law No. 7 of 1983 as amended by Law No. 16 of 2009 on General Provisions and Tax Procedures (KUP).

Corporate taxpayer Indonesia

The category or business classification of a Corporate Taxpayer will also affect its tax obligations in terms of rates and other aspects. This means that the tax obligations that need to be managed differ between corporate taxpayers that have the status of VAT-Registered Taxable Entrepreneurs (PKP) and those that do not (Non-PKP).

However, in general, corporate taxpayers are required to calculate, pay, and report their taxes. The type of tax obligations they need to manage depends on the transactions or tax activities of the business they conduct.

Types of Tax Obligations for Corporate Taxpayers

Referring to Law No. 36 of 2008 on Income Tax (PPh) and its derivatives, corporate taxpayers have several tax obligations to manage or pay, including:

1. Corporate Income Tax (PPh Badan)

Corporate taxpayers are required to calculate, pay, and report the corporate income tax they owe annually at rates appropriate to their business form.

2. Income Tax Article 21 (PPh 21)

Corporate taxpayers with employees must manage the withholding tax under Article 21 on salaries, wages, honoraria, allowances, and similar payments to employees. They must withhold Article 21 tax, deposit the withheld tax to the state treasury, and report the tax return monthly.

3. Income Tax Article 22 (PPh 22)

Corporate taxpayers engaged in export and import activities, or re-import, must manage the tax obligations under Article 22.

4. Income Tax Article 23 (PPh 23)

Corporate taxpayers also have to manage the tax obligations under Article 23 when transacting dividends, interest, service fees, prizes, and awards, as well as rental or other income from the use of assets other than land or the transfer of buildings or services.

5. Income Tax Article 25 (PPh 25)

Corporate taxpayers that maintain accounting records and use the standard corporate income tax rates must pay instalments of Article 25 tax.

6. Income Tax Article 26 (PPh 26)

Corporate taxpayers that employ foreign employees or engage in service transactions with foreign businesses must manage the tax obligations under Article 26 for income payments or taxable service transactions conducted with Permanent Establishments (PEs) in Indonesia.

7. Income Tax Article 29 (PPh 29)

Article 29 tax is the amount of tax owed by a company in a tax year that exceeds the tax credits (such as types PPh 21, 22, 23, and 24) already withheld or collected by other parties and paid by the taxpayer. The difference, or additional tax due, is what constitutes Article 29 tax, which must be paid before filing the Annual Corporate Income Tax Return.

8. Income Tax Article 4 Paragraph (2) (PPh 4 ayat (2))

Corporate taxpayers also have obligations under Article 4 Paragraph (2) if they engage in income-generating activities subject to the tax stipulated in this article.

9. Income Tax Article 15 (PPh 15)

Income tax under Article 15 is an obligation for corporate taxpayers operating in the shipping, international aviation, and foreign insurance industries.

Additional Obligations for VAT-Registered Corporate Taxpayers

For corporate taxpayers with VAT-Registered Taxable Entrepreneur (PKP) status, there are additional types of taxes that they are obligated to manage, namely:

Value-Added Tax (VAT)

PKP corporations that engage in VAT-liable goods/services activities or transactions are required to issue e-Invoices, deposit the collected tax, and report their periodic VAT returns.

Luxury Goods Sales Tax (PPnBM)

PKP corporations that conduct sales transactions of goods categorized as luxury items must also manage PPnBM by collecting the tax, depositing it, and reporting the e-Invoice.

How to Manage Corporate Taxes

After understanding the tax obligations of a corporate taxpayer, it is important to know how to manage these tax responsibilities, including:

  • Collecting and/or withholding tax on taxable transactions.
  • Depositing the collected and/or withheld tax.
  • Paying corporate income tax.
  • Issuing unified withholding tax certificates.
  • Issuing tax invoices.
  • Filing periodic unified income tax returns, VAT returns, and the annual corporate income tax return.


Corporate taxpayer obligations consist of various types of income taxes that must be managed depending on the transactions or activities conducted.

Meanwhile, for taxpayers with PKP (VAT-Registered Taxable Entrepreneur) status, in addition to managing income tax (PPh), they also have additional obligations to manage VAT and/or Luxury Goods Sales Tax (PPnBM).

As a corporate taxpayer, whether Non-PKP or PKP, conducting taxable goods and services transactions, they must issue withholding tax certificates or tax invoices. Managing unified withholding tax certificates can be done online through the e-Bupot application, and issuing electronic tax invoices can be managed through the e-Faktur application.

Corporate taxpayers must also deposit collected or withheld taxes into the state treasury using the e-Billing application. This explains the obligations of corporate taxpayers with PKP and Non-PKP status and how to manage them.

Corporate Tax Service Indonesia

If you still have questions or difficulties in several matters, Indoservice offers outsourcing services for corporate taxpayer and corporate PKP on Indonesian regulations. At Indoservice, we have a dedicated team of professionals who will handle Tax and Accounting for you. You can rely on us to provide the quality of service that best suits your needs.

Contact us at email: admin@indoservice.co.id or Call/Whatsapp +62877-1449-8500 for more detailed information.


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Obligations of Corporate Taxpayers and Corporate PKP
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Obligations of Corporate Taxpayers and Corporate PKP
Corporate taxpayers and corporate PKP (Taxable Entrepreneurs or VAT-registered businesses) have several obligations they must fulfill.
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