Taxation ยท KBLI 62021

Tax Consultant Specializing in Indonesian Cybersecurity

Navigate cybersecurity company taxation: security service VAT, project income tax, managed service tax, and tax strategies for business growth.

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What usually goes wrong

  • Cyber Consulting Service VAT

    Cybersecurity consulting services are subject to 11% VAT. Determining whether services are taxable and when VAT must be collected requires analysis per contract type.

  • Project vs Retainer Income Tax

    Penetration testing and audit projects are subject to different income tax from managed services (monthly retainers). Withholding receipt reconciliation needs to be done per service type.

  • Tax on Services to Foreign Clients

    When security services are provided to foreign companies (cross-border), tax implications differ including potential VAT exemption (export service).

  • Tax Incentives for Cyber Innovation

    Some cybersecurity R&D activities may qualify for tax incentives, but claims require proper documentation.

What we do

  1. 01

    VAT Service Classification

    Analysis and classification of VAT for each service type: penetration testing, audits, managed services, training, and incident response.

    • Correctly recorded VAT
    • No overpayment
    • Compliance ensured
  2. 02

    Multi-Stream Income Tax Management

    Income tax management system for multiple revenue streams: projects (Article 23), retainers (Article 21/23), and foreign clients (Article 26).

    • Recorded income tax per type
    • Managed withholding receipts
    • Audit ready
  3. 03

    Export Service Tax Planning

    Identification of services that qualify as service exports (VAT-exempt) and optimization of contract structure for international clients.

    • Optimal export VAT
    • Competitive pricing
    • Cross-country compliance

Related regulations

  • PMK 60/2022

    VAT on Digital Consulting Services

    VAT collection on cybersecurity consulting services provided to clients

  • UU PDP

    Personal Data Protection Law

    Data incident reporting obligations affecting tax aspects

  • PP 55/2022

    SME Final Income Tax

    0.5% final income tax rate for cybersecurity 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

Is penetration testing subject to VAT?

Yes, penetration testing performed for clients in Indonesia is subject to 11% VAT as consulting services. However, if penetration testing is performed for foreign clients (export service), it can qualify for 0% VAT as a service export.

How are managed security services (retainer) taxed?

Monthly managed service retainers are subject to 11% VAT. For income tax, retainers may be subject to Article 23 withholding (consulting services) or Article 4(2) if qualifying. We help analyze the most optimal tax treatment.

Can small cybersecurity companies use SME final income tax?

Yes. Cybersecurity companies with gross turnover under IDR 4.8 Billion per year can use SME final income tax of 0.5% of turnover. This is much simpler than regular corporate income tax. However, consider when to transition to regular corporate income tax as the business grows.

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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