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Understanding VAT

Understanding VAT and Luxury Goods Tax (STLG) in Indonesia

Indonesia’s tax system includes two key consumption taxes: Value Added Tax (VAT), known locally as Pajak Pertambahan Nilai (PPN), and the Sales Tax on Luxury Goods (STLG). While VAT applies broadly across goods and services, STLG is an additional tax on luxury items, aimed at regulating high-end consumption and promoting social equity.
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Apartment management fees VAT

What You Need to Know About VAT on Apartment Management Fees

The recent proposal to impose an 11% Value Added Tax (VAT) on apartment management fees in Indonesia has raised concerns among apartment owners and investors, particularly regarding the potential increase in living costs and its impact on the property market. This move affects essential services such as security, cleaning, and maintenance of common areas.
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Navigating Bankruptcy

Navigating Bankruptcy in Indonesia: Key Impacts and Procedures

Bankruptcy in Indonesia, governed by Law No. 37 of 2004, occurs when debtors fail to meet financial obligations, leading to court-ordered asset management. The Sritex case highlights the complex impacts of bankruptcy on workers, investors, and the broader business environment, showcasing its multifaceted consequences.
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PKPU

Utilizing PKPU for Business Stability and Debt Resolution​

The PKPU process, under Indonesia’s Law No. 37 of 2004 on Bankruptcy, helps debtors in financial distress negotiate debt repayment with creditors. This legal framework aims to prevent bankruptcy, allowing businesses to address obligations and continue operations while providing structured relief to debtors.
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