Taxation ยท KBLI 62015

Tax Consultant Specializing in Indonesian AI Companies

Navigate AI company taxation: digital service VAT, royalty and licensing models, R&D tax planning, and innovation tax incentives.

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What usually goes wrong

  • AI Digital Service VAT

    AI APIs, machine learning SaaS, and model training services provided to customers in Indonesia are subject to VAT. Companies must understand when they become VAT taxable entrepreneurs and how to collect VAT.

  • AI Model Royalty & Licensing

    When AI models are licensed to foreign companies or used cross-border, royalties received are subject to specific taxes that must be reconciled.

  • R&D Tax Incentives

    The government provides tax incentives for R&D activities, but claims require proper documentation and understanding of qualifying criteria.

  • Transfer Pricing for AI Services

    AI companies with entities in multiple countries must ensure AI service transfer prices comply with regulations and arm's length principle.

What we do

  1. 01

    Digital Service VAT Compliance

    Setup of VAT compliance for AI services: identifying VAT taxable entrepreneur obligations, collecting VAT on API/SaaS, and monthly VAT return reporting.

    • Correctly recorded VAT
    • Lower penalty risk
    • Optimal tax credits
  2. 02

    R&D Tax Incentive Planning

    Identification and claiming of tax incentives for AI/ML R&D activities as per applicable regulations.

    • Reduced tax burden
    • Better cash flow
    • More viable R&D investment
  3. 03

    Royalty & Cross-Border Tax Advisory

    Analysis of cross-border AI model licensing and royalty agreements to minimize double taxation and ensure foreign tax credit recording.

    • Minimal double taxation
    • Increased net royalties
    • Cross-country compliance

Related regulations

  • PMK 60/2022

    VAT on AI Digital Services

    VAT collection on AI services provided to end consumers in Indonesia

  • UU HPP

    Harmonization of Tax Regulations

    VAT provisions for digital technology services including AI APIs and machine learning SaaS

  • PP 55/2022

    SME Final Income Tax

    0.5% final income tax rate for AI company SMEs with turnover under IDR 4.8 Billion

If the tax office starts asking questions

The team that keeps your books and files your taxes also stays with you through an SP2DK, an audit, an objection and an appeal.

How we handle tax disputes

Frequently Asked Questions

Are AI API services subject to VAT?

Yes. AI API services provided to customers in Indonesia are subject to 11% VAT as digital services. If the company is a VAT taxable entrepreneur, it must collect and report VAT. For startups with turnover under IDR 4.8 Billion, 0.5% SME final income tax can be used.

How to claim R&D tax incentives?

R&D tax incentives can take the form of reduced taxable income or super deductions for qualifying R&D costs. Required documentation includes research proposals, progress reports, and cost evidence. We help prepare documents and claim applicable incentives.

Does transfer pricing apply to cross-border AI services?

Yes. If an Indonesian AI company provides services (API access, model training, consulting) to foreign affiliated entities, the transaction must comply with transfer pricing rules (arm's length principle). Required documentation includes benchmarking and Master File/Local File.

Who handles my tax work?

Your tax work is handled by Arunika's tax consultants. We confirm the scope, deadlines and price before work starts.

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.

What does tax planning cover?

We review your structure, transactions and available incentives so tax is calculated under the rules, without crossing into tax evasion. The outcome depends on your facts, so we do not promise a savings figure.

Related Industries

Tell us about your business

Send your line of business, rough annual turnover, and what is going wrong. We reply on WhatsApp.

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