Indonesia has been an emerging market for many years and many business owners have incorporated their companies in the country. With every incorporation or a new business venture, there are bound to be some unsuccessful ones.
In such cases, there are two options:
A dormant company is one that has ceased to operate and does not have any records of transactions in its financial books dating back to a certain time period. According to several other business experts, a dormant company in Indonesia is considered inactive by the tax authorities in terms of taxation regulations.
Dormant companies in Indonesia, according to the information stated in Article 146 of Law Number 40 in 2007 about limited liability companies (PT PMA), are companies that are unable to continue operations because they have been non-active or have not conducted any business for the previous three years, as reported to the tax office via notification letter.
The tax authorities in Indonesia define the company as a non-active taxpayer if the company fulfills the following criteria: