TaxSavvyID

PT PMA and PKP from day one

PT PMA kami belum ada omzet. Perlu PKP sekarang?

The situation

There is no special rule forcing a PT PMA to register for VAT before it passes the threshold. Many register early to claim input VAT on set up costs.

The law

  • Art 3A, Law 8/1983 on VAT and Luxury Goods Sales Tax (PPN Law), as last amended by Law 6/2023: A business making taxable supplies must report to be confirmed as a taxable entrepreneur (PKP), except small entrepreneurs who may opt in
  • Art 9, Law 8/1983 on VAT and Luxury Goods Sales Tax (PPN Law), as last amended by Law 6/2023: Input VAT is credited against output VAT in the same period; excess can be carried forward or refunded at year end

What it means for you

Without PKP status you cannot credit input VAT on set up spending. Registering early lets you carry forward input VAT, though refunds may lead to audits. Example: IDR 2 billion of fit out costs carry about IDR 220 million input VAT.

What to do

  1. Estimate input VAT on set up costs.
  2. Decide on early PKP.
  3. Prepare for the site check.
  4. Track VAT credits.

Refund claims usually trigger a tax audit.

We can do this for youVAT registration as a taxable entrepreneur (PKP): the IDR 4.8 billion test, voluntary registration and verification: IDR 2.500.000

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