Virtual Office for Taxable Companies in Indonesia: Legal Basis and Requirements

Virtual office services have gained popularity in Indonesia, providing entrepreneurs with convenience and efficiency, particularly in managing permits and taxes.

Before 2017, virtual offices couldn’t serve as the official address for Taxable Companies (PKP) due to the absence of a physical space for business activities. However, this changed with the issuance of Minister of Finance Regulation Number 147/PMK.03/2017, amending Minister of Finance Regulation Number 197/PMK.03/2012.

This regulation allows virtual offices to be used as the official address for PKP, provided they meet specific requirements.

Daftar Isi hide

1) Legal Basis for Virtual Office Eligibility for PKP

2) Advantages of Using PKP-eligible Virtual Office

3) Requirements for PKP-eligible Virtual Office

4) PKP Registration Process for Virtual Office

Legal Basis for Virtual Office Eligibility for PKP

The legal basis for virtual offices eligible for PKP includes:

Minister of Finance Regulation Number 147/PMK.03/2017: Amendment to Minister of Finance Regulation Number 197/PMK.03/2012 on the Registration, De-registration, and Data Changes Procedure for Taxable Entrepreneurs.
Minister of Finance Regulation Number 23/PMK.03/2018: Amendment to Minister of Finance Regulation Number 147/PMK.03/2017 on the Registration, De-registration, and Data Changes Procedure for Taxable Entrepreneurs.

Advantages of Using PKP-eligible Virtual Office

Several benefits come with using a virtual office eligible for PKP, including:

Cost Efficiency: Virtual offices can save operational costs such as rent, electricity, and water.
Security and Privacy: Virtual offices have adequate security systems to safeguard a company’s security and privacy.
Collaboration Opportunities: Virtual offices can serve as an ideal space for collaboration with business partners or clients.
Legitimacy: PKP-eligible virtual offices provide legitimacy to the company, building trust with business partners.

Requirements for PKP-eligible Virtual Office

Several requirements must be met by virtual offices to be eligible for use as the official address for PKP registration, including:

The virtual office manager must be registered as a PKP entity.
The virtual office must provide physical space for business activities for entrepreneurs seeking PKP registration.
The virtual office must genuinely engage in office support services.

Entrepreneurs using virtual office services must also meet the following conditions:

Possess a business license or similar document issued by the relevant authorities.
Have a Taxpayer Identification Number (NPWP) and be registered as PKP.

PKP Registration Process for Virtual Office

The PKP registration process for a virtual office is relatively straightforward. Entrepreneurs need to submit an application to the Tax Office (KPP) where they are registered.

Documents required for the PKP registration application include:

PKP registration application form.
Letter from the virtual office manager confirming their PKP registration and provision of physical space for business activities.
Letter from the entrepreneur confirming possession of a business license or similar document issued by the relevant authorities.

Also read: Virtual Office Tax Regulations in Indonesia

Once the application is approved, the Tax Office will issue a Certificate of Registration (SKT) for PKP.

vOffice is a provider of virtual office services eligible for PKP registration. Companies using vOffice’s virtual office can apply for and obtain PKP status, enhancing their business collaboration opportunities with the government.

So, are you interested in renting a virtual office?

If yes, you can contact the vOffice team. We provide virtual office services in various prestigious locations in Indonesia.

Here are the strategic location options from vOffice for virtual offices in Indonesia: