IndonesiaSource image: / CC by 2.0
Indonesia which is an ASEAN member country lies on the crosslink of two continents, Asia and Australia, as well as two oceans, the Indian Ocean and Pacific Ocean. Indonesia is the fourth most populous nation in the world after China, India and the United States. Over two thirds of the population resides in Java, the center of the country’s economic and political power. The Indonesian national motto “Unity in Diversity” points to one of the greatest attractions of Indonesia. There are some 300 ethnic groups, a result of both the country’s unique geography and history. Many Indonesians may see themselves first by their ethnic and cultural group and secondly as Indonesians. The glue that binds the people together is the usage of the Bahasa Indonesia, the national language, and Pancasila, the national philosophy, which stresses the doctrine of unity and universal justice for all Indonesians.
Indonesia is also the third fastest growing economy in Asia and the largest economy in Southeast Asia. With stable politics and strong economy, Indonesia is known to be the emerging power house in Asia. Indonesia’s economic policies are on a firm footing, so are its measures to attract foreign investment.
Indonesia, being a market oriented open economy, with free foreign currency exchange regime, its government realizes that investment is one fundamental factor in accelerating economy; hence they make serious efforts on fixing investment procedures to stimulate the more advantageous investment climate.
- Most lines of businesses are open for foreigners.
- Foreigners can hold up to 100% shares in many lines of businesses.
- There is no requirement for a local director or shareholder, which means all directors can be foreigners
- There is no requirement for a company secretary
- Private company with turnover of less than USD 5 million is exempt from audit
- Equal treatment for domestic and foreign investors.
- Indonesia company formation permits entrepreneurs access to a network of double taxation treaties with countries including Australia, France, Germany, Singapore, South Africa, the US and the UK.
- The Indonesian economy is ranked as the 46th-most competitive economy in the world, according to the World Economic Forum’s Global
- An Indonesian company can be 100% foreign-owned and controlled.
- An Indonesia Representative Office can also be 100% foreign-owned and controlled, but is not permitted to make direct sales in Indonesia.
- Mandatory divestment is no longer applicable and the business license obtained will remain valid as long as the company continues in operations.
- Establishing a company in Indonesia is a highly bureaucratic process, but nonetheless a process that has become relatively easier over the past few years. The first step in this rather complex process is the obtaining of an Investment Approval from the Investment Coordination Board. This approval process is nowadays relatively quick, and can be completed in as little as 14 days in some investment board offices.
Gibraltar companies now have to disclose full Beneficial Ownership details to Central Register
Gibraltar is working to implement all EU legislation relating to the 4th Anti Money Laundering Directive into national law, in addition to the current EU legislation on financial supervision and direct taxation, and to this affect, the Government of Gibraltar have established a Central Register of Beneficial Ownership that will be effective from June 26th 2017.
European Commission publishes tax avoidance disclosure directive
The EC (European Commission) has published its draft legislation compelling financial service providers or intermediaries to disclose any international tax planning schemes they have encouraged, enabled or assisted in any way.
OECD publishes compliance review for all non-compliant jurisdictions
The OECDs global tax transparency initiative was launched last year in April 2016, with the purpose of encouraging every jurisdiction across the world to commit to implementation of a CRS (Common Reporting Standard) for automatic exchange of information by 2018, and to sign the Multilateral Convention on the exchanging of tax data. A forum on behalf of the OECD has released the results of its review for jurisdictions it considers to be non-compliant.
EU Parliament Committee release findings & recommendations for current offshore taxation measures
A formal enquiry into the Panamanian law firm Mossack Fonseca has been launched by the European Parliament's Committee, which found gaps in beneficial ownership transparency for trusts and fiduciaries and didn’t meet the EU standard.
2017 G20 summit: Enforcement of taxation highest priority
The 2017 G20 leaders’ summit took place in Hamburg last week where the European Commission Council and leaders discussed the priorities and primary projects for the upcoming summit. EC President Jean-Claude Juncker has stated that advancing the global combat against tax evasion is top of the list.
The EC takes action against advocates promoting tax avoidance schemes
The European Commission has recommended the implementation of a new regulation regarding companies or intermediaries who promote or design cross-border tax planning schemes will going forward be required to provide full disclosure to the tax authorities of their relevant jurisdiction within five days of offering them to clients.
What are the new Beneficial Ownership reporting requirements for BVI companies?
Going forward, a new regulation will require certain British Virgin Islands companies to gather and retain details of Beneficial Owners with 25% or more of the company’s shareholding rights, with an ongoing requirement to keep the details up to date.
Russian citizens can gain Cyprus tax residency by staying only 60 days on island, whats the catch?
Cyprus is once again working to improve its economic desirability and will be able to increase its alternative business base for Russians with good creditworthiness.