Manufacturing is the value added production of merchandise for use or sale using labour and machines, tools, chemical and biological processing, or formulation. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale.

Indonesia’s manufacturing industry have shown good growth. Based on the statistical report titled “International Yearbook of Industrial Statistics 2016”, the manufacturing industry in Indonesia is reported to have contributed nearly a quarter of the gross domestic product (GDP).

United Nations Industrial Development Organization (UNIDO) recognizes Indonesia ranked 10th in the world of the manufacturing industry.

We have assisted our clients in resolving the case and provided solution of tax issues such as:

  • Tax Audit
  • Preparing the Corporate Income Tax Return
  • Tax Objection

Some of the tax regulation associated with manufacturing industry among others are:

  • Regulation (PER) The Minister Of Finance Of The Republic Of Indonesia (MoF) Number 30/PMK.03/2011 Regarding Amendment To Regulation Of The Minister Of Finance Number 70/Pmk.03/2010 Regarding Limitation On Activity And Type Of Taxable Services The Export Of Which Is Imposed With Value Added Tax.
  • Law (UU) 36 Year 2008 Regarding Fourth Amendment To Law Number 7 Year 1983 Regarding Income Tax.
  • Government Regulation (PP) 56 Year 2015 Regarding Amendment To Government Regulation Number 77 Year 2013 Regarding Reduction Of Income Tax Tariff For Resident Corporate Taxpayers In The Form Of Publicly Listed Companies.