Understanding Tax Regulations for Maklon Services

Tax Consultant Office Bali, Agam Anand Konsultama

Maklon services are increasingly popular across various industries in Indonesia. However, understanding the tax regulations for maklon services often poses challenges for many entrepreneurs. This article will discuss the applicable tax regulations for maklon services in Indonesia, helping you understand the important aspects that need attention.

What is Maklon Service?

Maklon service is a service where a company manufactures certain goods or components based on orders from another company. The ordering company usually provides raw materials or product specifications that must be met by the maklon service provider.

Tax Regulations for Maklon Services

In taxation, maklon services are subject to Value Added Tax (VAT) and Income Tax (PPh). Here are the regulations that need attention:

Value Added Tax (VAT)
- Maklon services are classified as taxable services (JKP) and are subject to VAT at 11%.
- VAT is imposed on the value of the services provided, not on the value of the raw materials provided by the ordering company.
Income Tax (PPh)
- Maklon services are also subject to Income Tax Article 23 with a rate of 2% of the gross value of the services.
- Income Tax Article 23 is withheld by the ordering company and deposited into the state treasury.

Tax Calculation

To calculate the tax payable on maklon services, here is a simple example:

Service value: IDR 100,000,000
VAT (11%): IDR 11,000,000
Income Tax Article 23 (2%): IDR 2,000,000

Conclusion

Understanding the tax regulations for maklon services is crucial for companies wanting to utilize this service. By knowing the tax obligations, companies can avoid penalties and ensure compliance with applicable regulations. If you need further assistance regarding maklon service taxation, the Tax Consultant Office Bali, Agam Anand Konsultama is ready to assist you.

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