Corporate tax is a vital part of the Indonesian tax system. The corporate tax which is paid by Indonesia’s companies helps the country’s government operate in the most suitable way possible. Therefore, corporate tax keeps the country functioning in a proper and smooth manner.
The sole purpose of any business activity is to earn profits. While this profit largely benefits the owner of the business and the employees, it will also benefit the government through corporate tax.
Corporate tax refers to deductions made on entities taxable in a certain jurisdiction. Similar to companies of other nations, companies in Indonesia are required to pay their tax obligations as required by the Indonesian government.