Taxation KBLI 52101 Risk Medium

Logistics & Delivery Services Tax

Logistics and delivery service companies face VAT obligations on transportation services and Article 23 Income Tax withholding from corporate clients. For shipping and aviation charter services, Article 15 Income Tax applies with special rates. Arunika Consulting helps logistics companies manage various applicable taxes according to their business models.

Tax Rate

11%

PPN

Risk Level

Medium

Typical Turnover

IDR 1 Billion - 100 Billion per year

Tax Challenges

Many Types of Tax Withholding

Corporate clients withhold Article 23 Income Tax (2%) on freight services, while charter is subject to Article 15 Income Tax with different rates.

Transportation Service VAT

Delivery services are subject to 11% VAT, but there is Other Value Tax Base mechanism for certain services.

Withholding Proof from Many Clients

Logistics with hundreds of clients must collect Article 23 Income Tax withholding slips for tax credits.

Our Tax Solutions

1

Withholding Tax Management

Tracking system for Article 23 and Article 15 Income Tax withholding slips from all clients for Annual Tax Return reconciliation.

  • Complete tax credits
  • No overpayment left behind
  • Audit ready
2

VAT Optimization

Ensuring all Input VAT from operations (fuel, maintenance, rent) can be credited.

  • Minimal VAT burden
  • Good cash flow
  • Optimal tax position
3

Service Structure Evaluation

Analyzing whether service structure includes public transportation (Other Value Tax Base) or regular freight services.

  • Correct VAT rate
  • Compliance maintained
  • Competitive pricing

Related Tax Regulations

UU PPN

Law No. 42/2009 on Value Added Tax

11% VAT on transportation services and logistics-related services.

PPh Pasal 23

Income Tax Withholding on Freight Services

2% rate on freight forwarding and delivery services paid by business entities.

PPh Pasal 15

Income Tax on Ship/Aircraft Charter

Special rates for shipping charter services (1.2%) and aviation (1.8%) domestic.

Need a Tax Consultant for Logistics & Delivery Services Tax?

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Frequently Asked Questions

Are instant courier services subject to Article 23 Income Tax?

If the service provider is a business entity and the payer is also a business entity, then subject to 2% Article 23 Income Tax on service value.

What is the difference between Article 15 and Article 23 Income Tax for logistics?

Article 15 for shipping/aviation charter services with special rates (1.2%/1.8%). Article 23 for general freight forwarding services (2%).

How is VAT for public transportation services?

Land public transportation services use Other Value Tax Base 10% so effective VAT is 1.1%. Special/charter services subject to full 11% VAT.

Is Arunika Consulting officially licensed as a tax consultant?

Yes. We are registered tax consultants and support clients with compliant, professional tax advisory and representation.

What should I do if I receive an SP2DK letter or tax audit notice?

Contact us early. We help analyze the risk, prepare supporting documents, draft the response, and assist discussions with the tax office.

How much tax saving can tax planning deliver?

It depends on your structure and transactions. We identify legal efficiencies, incentives, and reporting improvements without crossing into tax evasion.