What are the Reporting Requirements for Private Companies to the State?
Directors and Board of Commissioners, and dissolution of the company.
The procedures, timeframe, and specific provisions regarding the transfer of share ownership, replacement of members of the Board of Directors and Board of Commissioners, and dissolution of the company are usually stipulated in the company’s Articles of Association, which have been adjusted in accordance with the applicable laws and regulations. However, when any of the aforementioned events occur, they must be reported to the Ministry of Law and Human Rights.
2. Written Report to the Minister Regarding Employment
Referring to Law Number 7 of 1981 concerning Mandatory Reporting of Employment in Companies. Article 7 paragraph (1) states that after submitting a report upon establishment, resumption of operations, or relocation of a company, the employer or manager must annually report in writing on employment to the Minister or designated official (Ministry of Manpower).
Based on Article 35 paragraph (1) and paragraph (4) of the Regulation of the Indonesian Investment Coordinating Board Number 4 of 2021 Concerning Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities, for Business Actors who have not yet submitted mandatory reports on employment in the company, the NIB (Investment Registration Number) serves as evidence of fulfilling the first mandatory report on employment in the company. With regard to this evidence of report fulfillment, Business Actors who have obtained the NIB are required to report to the minister responsible for labor affairs periodically every 1 (one) year in December in accordance with the laws and regulations in the field of employment.
3. Annual Company Notification (SPT)
The Annual Notification is a document used by Taxpayers to report tax calculations and/or payments, taxable objects and/or non-taxable objects, and assets and liabilities in accordance with tax laws and regulations. The Annual Notification is divided into Annual Income Tax Notification for Individual Taxpayers, Annual Income Tax Notification for Corporate Taxpayers, and Amendment Annual Notification.
As a corporate taxpayer, the company must submit the Annual Income Tax Notification no later than four months after the end of the Tax Year or fiscal year used by the company. The Annual Notification must be submitted to the Director General of Taxes. Further details on the procedures for the Annual Notification can be found in the Regulation of the Director General of Taxes Number Per-02/PJ/2019 concerning Procedures for Submission, Receipt, and Processing of Notification Letters.
4. Periodic Reports by Business Actors through the OSS (Online Single Submission)System
Regulation of the Indonesian Investment Coordinating Board Number 5 of 2021 concerning Guidelines and Procedures for Risk-Based Business Licensing Supervision has regulated the risk-based supervision process. According to this Regulation, there will be Investment Monitoring carried out on every business activity with the frequency of implementation based on the level of Risk and the level of compliance of Business Actors. The supervision includes routine and incidental supervision.
In addition to the above supervision, there is monitoring of reports by Business Actors conducted on:
- Investment Realization Reports covering investment realization, employment realization, production realization including export value, partnership obligations, and other obligations related to investment realization submitted by individual Business Actors and business entities;
- Reports on the activities of representative office Business Actors;
- Reports on the activities of foreign business entity Business Actors; or d. Import realization reports submitted by foreign business entity Business Actors.
- These reports are adjusted to the form, size, and business activities conducted by each company.
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