Taxable Entrepreneur (PKP) Regulation for Virtual Office – Creative industries will not be burden by the domicile matter. The Indonesian government already gives fresh air for them that now Virtual Office can be used for PKP.
In the beginning, this Virtual Office used to create a bit of hassle especially for administrative matters such as Taxable Entrepreneurs (PKP) because the address of Virtual Office is not an original address where the business activity actually happens.
Now the Indonesian government already legalized Virtual Office to be used for the PKP application as stated in PMK No. 147/PMK.03/2017, where to get PKP, the required documents such as registration form from the tax office, company deed of establishment, tax ID, ID card, business license, tax return, company financial statement, lease agreement, inventory list, photo, and office layout needs to be prepared.
For information, not all Virtual Office users must register for PKP, only the entrepreneur, company, or business who do the consignment on Taxable Goods (BKP) and/or Taxable Services (JKP) which has VAT based on the VAT Law 1984 and its amendment, also for them who have reached a gross income of IDR 4,8 billion in 1 bookkeeping period. So if the company still has a gross income of IDR 4,8 billion will not be obliged to be a PKP.