Tax Planning Of Chinese Enterprises' Investment In Indonesia

The economy of China is developing steadily,meanwhile,quite a number of Chinese enterprises is seeking for the investment opportunity all around the world.China initiated the business cooperation along One Belt One Road,and more Chinese enterprises are expanding their investment by developing the overseas business.Indonesia is one of the typical investment destination.The Chinese enterprises that invest in the foreign countries have to take some factors into consideration such as building the tax saving investment structure,reducing the overseas income tax and Chinese income tax at the operation and profit distribution stages,improving the cash flow and increasing the NPV and Rate of Return.This article gives a hint to the Chinese enterprises' investment in Indonesia by analyzing the situation,introducing the Indonesia tax regime on both Corporation and Individual,and discussing the Indonesia tax planning of conducted by the Chinese enterprises through two investment cases.Under the complex economy environment,the tax regime is always changing and the situation of the enterprises varies.The Indonesia tax planning has to be adjusted accordingly to support the investment activities of Chinese enterprises in Indonesia.