SEC-S20W4 | My Business Ideas | Registration, License, and Taxes

Hi friends, after reading around I am interested in participating in an amazing challenge this week. The challenge is titled: Registration, License, and Tax held by Mr. @dove11 and Mrs. @aviral123 following the contest link:

Previously I also invited other friends such as my friend @cymolan, @drhira and @teukuipul87.

^{I edited with Canva after learning from Mr. @lhorgic}

Part 1- We are interested in knowing about your business registration procedure in your country and how you manage it.

So yes, if you want to register a business in our country, Indonesia, for example in Aceh Province, it is actually easy by following steps that are not complicated and can even be said to be quite simple. First of all, we must have a business license first and then continue with other things. We can take care of the business license through OSS (Online Single Submission), that's what I read. OSS itself is a kind of online system created by the government, usually to make it easier and more efficient for people. Furthermore, we only need to register the OSS account so that we can access the page. The registration requires several files that are usually scanned or photographed directly, so we must prepare these files. Usually the files can be in the form of an identity card or KTP, NPWP, and proof of domicile of an entrepreneur himself which can be made in each village. After preparing all the files, the next step is just to register and upload the files.

Not only that, but we still really need to take care of other more detailed permits depending on what type of business we want to open. Generally, people now open a lot of selling businesses, for example we plan to open a food stall, of course we need permission from the health department, for example, and other agencies. Then, when it's finished we just run the business well, of course it must be run with good management, for example starting from financial management to the marketing process.

Friends must also attach importance to always updating every government regulation with the intention that the business or business we are running is proven to always be legal and does not cause many problems in the future.

Part 2- Tell us all about the procedure to get a license/permit etc. to run your business.

^Source

So when we talk about permits or licenses to start a business, then of course the answer is that it really depends on what business we want to open. But in most cases, when someone builds a business in Indonesia, for example in the province of Aceh, they need a business license first as explained in part 1, which must go through OSS for example. As for small business parts such as MSMEs or so on, then usually the permit is easier and even faster to find if the conditions are complete.

However, some of them are more complicated types of businesses or businesses such as in the food sector, or health, so of course it requires more permits from various related agencies, and that's certain. In terms of payment, if we want to comply with the rules, then of course we have to pay an official fee, usually in the form of a legal commission. Sometimes there are also many problems such as those that regulate the work done by many people regularly or usually called bureaucracy, so that is what makes it complicated or it could be a long process caused by queuing in the government, maybe it has become a common problem.

As for other things that often arise when involving officers. Usually we have to wait for the process or go back and forth when taking care of incomplete files, or so on. that is what makes the process long depending on the place we can even say it is very diverse. Therefore, the process will not always be smooth, there must be highs and lows and bitter sweetness, even though some of them run smoothly.

Part 3- What is the tax structure for traders/producers?

Well friends, within the scope of the tax structure in my country Indonesia, whether in terms of traders or in terms of producers, they will usually be subject to Income Tax or abbreviated as PPh and not only that, there is still more, namely Value Added Tax or abbreviated as VAT if the turnover of our business has passed a certain threshold point. If the business we are running is still small, we can say that it is still in the MSME category, then we are only subject to the final tax rate, which we can say is lighter, around 0.5% of the gross turnover of our business.

^Source

However, if our business has a large turnover, we can even say that it is already in the billion rupiah per year, of course, VAT will be charged up to 11% which must be collected from the buyer. Not only that, the income tax also goes up, of course, adjusted for the progressive rate, the higher the turnover or profit earned, of course, the higher the tax rate of our business. In the business part of the tax return or called a tax return, then we have to report taxes can be through online such as e-Filing on the DGT Online website.

Part 4- What are the options available if you are facing tax-related issues?

When facing tax-related problems, of course there will be various options available to be resolved. But usually we can consult with an experienced tax consultant or arguably a professional. Because they must have known the origin of taxation so that they can help us to solve the obstacles we do not understand. However, if the problem is still relatively mild, then it would be better if we take care of it ourselves. In my country Indonesia, everything has been organized online through DGT Online, so it is easier to take care of reporting or even repairs yourself.

^Source

In terms of courts for consumers, in our country a Consumer Dispute Settlement Body has been established, abbreviated as BPSK. All business and consumer issues are dealt with by them. The legal position of consumers is generally prioritized on the grounds that Indonesia has regulated consumer protection laws.

Source:

https://www.cekindo.com/id/blog/permasalahan-bisnis-di-indonesia
https://www.pajak.go.id
https://djponline.pajak.go.id/
https://www.dpr.go.id/jdih/index/id/268
https://www.jurnal.id/id/blog/2017-6-masalah-bisnis-yang-sering-terjadi-dan-bagaimana-solusinya/

Best Regard
@walictd