- Bonadea Batam give clients access to a complete range of services specially developed to meet their needs at all stages of their development.
Clients receive practical advice on business issues, tailored to meet their objectives, from experienced business advisers. Our company have the resources to advise on most financial matters.
For specific information on individual services please contact an appropriate staff or the Executive Office, who will be able to direct you to a suitable services.
Accountancy
The services cover a full range from routine accounting to statutory audit services.
Audit
The core service is the audit, which we believe is more than a routine compliance exercise. It enables our professionals to review your financial operations and make constructive suggestions about improvements and best practice that will enhance business performance. In this way we also help management in identifying and controlling business risks.
We have common audit standards across our company, which are supported by a specialist Technical Partner. Our Associate Firms are skilled in managing audit assignments, whether co-ordinating multinational assignments or reporting in to head office auditors.
Our Associate Firms for this services are :
KAP Griselda, Wisnu & Arum
Accounting Services
In addition to this core service, fully outsourced management accounting and company secretarial services are provided for organisations with limited resources that wish to focus management effort on growing their business. These include a specialist web-based accounting service that has been specially developed for retailers of high volume consumer goods.
Our company also provide bookkeeping and payroll services.
Corporate Governance
As standards of corporate behaviour come under increasing scrutiny, senior managers need to take account of the rules, regulations and best practice concerning Corporate Governance. Our specialists provide practical advice in this important area.
IFRS
The adoption of International Financial Reporting Standards (IFRS) has become widespread. The specialists in our Associate firms can advise on their adoption by large entities and by small and medium size companies.
Risk Management
Specialists advise on risk management, reviewing not only financial risks but also areas including operations, resources and reputation that can have a dramatic impact on the continuing success of an organisation.
Internal Audit
Internal audit plays a valuable role in providing assurance that key controls are in place and operating effectively so that financial and other corporate risks are managed. Advice on, and assistance with, the operation of an internal audit service is provided: internal audit can also be outsourced from clients to our Associate firms.
Taxation
Taxation affects all businesses and is a particular concern for businesses operating in multiple jurisdictions.
Corporate Taxation
Developing effective tax strategies that encompass the whole organisation is essential so that the impact of an approach in one territory is considered in relation to its effect on the overall tax position of the organisation and the objectives of management. It is also a fact of life that tax legislation is becoming ever more complex.
Our Associate Firms have the specialist knowledge and experience to help clients deal with all the different aspects of taxation and, where required, to negotiate with the various tax authorities. Member Firms work to minimise the impact of taxation and maximise wealth, whilst ensuring compliance with relevant legislation. For example, they advise on:
- Compliance with tax authority requirements
- VAT and other sales taxes
- Repatriation of profits
- Withholding taxes
- Transfer pricing
- Customs duties
- Dividend, royalty or interest planning
- Employment taxes and employee benefits
- Mergers and acquisitions
Personal Taxation
Our Associate Firms advise on the national and international taxation of individuals. In particular, their advice covers the taxation of people working overseas; they advise on how the individual’s exposure to tax may be minimised and on effective forms of remuneration
Our Associate Firms in Tax Services are Registered Tax Consultants :
KKP SUNADI, SE, S.Akt, SH, MH
KKP ERMA YUDIAWATI, S.Akt
TRANSFER PRICING DOCUMENTATION
Generally, in accordance with the Indonesian Tax Authorities’s guidelines (PER 43/PJ/2010) as amended by PER 32/PJ/2011, taxpayers in Indonesia are required to provide documentation for the determination of a “fair price” or “fair profit” to be made clear to the Indonesian Taks Authorities. Such documentation shall cover a detail description of the company, its policy on the price determination and/or cost allocation determination, the results of a comparative analysis and notes on the application of the selected transfer pricing method.
It should be noted that the transfer pricing documentation should be prepared before the company’s annual taks return, including the submission of the related party transaction disclosure form (Form 3A, 3B and 3C).
Objective
Due to the need for contemporaneous transfer pricing documentation in Indonesia, we understand that client is proactively seeking to manage transfer pricing risks in Indonesia by preparing transfer pricing documentation for client.
Scope of work
In preparing transfer pricing documentation for Client for Fiscal year, we will undertake the following steps in order to validate and document an acceptable transfer pricing policy for the above mentioned inter-company transactions taking place between Client and its related party/ies.
Step 1: Industry analysis and Company overview
In the first step, we will start with the preparation of a brief industry analysis, comprising relevant information regarding the industry in which the Client’s group is involved, and an overview of the Client’s group as a whole, in order to enable the functional analysis information (see below) to be placed in the appropriate context.
This will involve as much leverage as possible from existing documentation, supplemented by additional information to be gathered through discussions and conference calls with you and your colleagues (at the same time as the functional analysis interviews – see below). The objective will be to clearly identify the nature of the industry in which the Client’s group operates, such as the nature and extent of competition, presence of barriers to entry, influence of regulation, recent factors that have impacted the industry in the region and so on.
Step 2: Functional analysis
A functional analysis involves a documentation of the functions performed, risks assumed and assets owned/developed by each related party to a transaction, and is generally considered to be the cornerstone of the justification of a group’s transfer pricing practices. This is normally executed through structured interviews with key personnel who are considered likely to have a thorough and detailed understanding of the business operations of the companies in question.
In order to prepare the transfer pricing documentation for Client’s, it is anticipated that the functional analysis interviews will take place through conference calls with key personnel in Client. We request your cooperation in scheduling the interviews in an efficient manner.
In preparing the functional analysis, we will review the intra-group services arrangements between Client and its overseas related parties, and include a discussion as to the nature of the services provided and how those services provide benefits to Client. In preparing this section of the functional analysis, we shall rely on the information and supporting documents provided by you and our review of the service level agreement between the parties, as well as additional discussions if needed.
Bonadea will draft the functional analysis section of the document in accordance with the Indonesia transfer pricing guidelines, to be reviewed and confirmed by personnel at Client’s parent company and Client for factual accuracy and completeness.
Step 3: Design of the transfer pricing system and selection of the most appropriate transfer pricing methodology
Based upon the outcome of the functional analysis process, the next step involves the design of the transfer pricing system and selection of the most appropriate transfer pricing methodology to test the arm’s length nature of the profitability of Client.
During this step, we will discuss the intercompany transactions and the transfer pricing model with you in detail, as well as the operating performance in prior years, to ensure that you have designed and implemented a best practice transfer pricing model that is in full compliance with the arm’s length principle and gives Client the strongest basis for defence against tax authority scrutiny.
Based on the Indonesian transfer pricing guidelines, the transfer pricing methods that can be used may vary depending on the functional and risk pattern within a multinational group as well as ownership of tangible and intangible assets. More specifically, based upon the industry and functional analysis information, Bonadea will analyze and document the business reasons for the transfer pricing strategy and selection of methods. This should enable Client to, if required, present a consistent analysis to the various local tax authorities, based on sound economic principles and backed by the arm’s length principle as recommended by the respective tax authorities.
For the purposes of this proposal, it is assumed that there are no transactions with third parties that could be used as internal comparable transactions for the business activity under review. If this assumption is incorrect, the approach may have to be amended.
Step 4: Benchmarking analysis
In Step 4, we will carry out detailed economic analyses in order to confirm the arm’s length nature of the pricing of the international related party transactions involving Client.
All searches will be carried out strictly in accordance with the expectations of the Indonesian tax authority.
Step 5: Documentation
The final step in the study begins with the compilation of the documentation describing the inter-company transactions and the related transfer pricing systems. The document includes several sections that together form the documentation of a transfer pricing system. Typically, these are:
- An industry analysis.
- A functional analysis.
- An economic analysis.
- A financial analysis.
- An executive summary.
We will issue a draft report based upon the previous steps undertaken, which Client’s parent company and Client will review. Bonadea will then incorporate any comments received to issue a final report.
The deliverable at the end of this Project will be a full transfer pricing report for Fiscal year in compliance with the Indonesian transfer pricing guidelines. While this report will be specifically prepared in accordance with the Indonesian transfer pricing guidelines, we will also ensure that they are broadly consistent with the OECD Guidelines.
Advisory
A wide range of business advisory services is provided.
A brief summary of key service areas is provided below.
Due Diligence Investigations
These investigations may be undertaken for a wide range of reasons but typically they concern some form of corporate transaction such as an acquisition or an investment in another business. Our specialists are skilled in undertaking such investigations and have the resources to undertake complex assignments to meet the most demanding timetables.
Corporate Finance
Our offices in major financial centres provide a wide range of services including raising capital; gaining listings on, and advising on the requirements of, the various equity markets; mergers and acquisitions; and divestments.
IT Consultancy
IT is a valuable tool for business, when implemented effectively. BONADEA Associates review information systems to identify opportunities for using existing systems more effectively. Where investment in new systems is required, specialists work with clients to identify the benefits sought and to ensure that any investment made delivers those benefits and is cost-effective. The objective is always to provide management with the information they need to manage their business, whether on a national or international basis.
Management Consulting
Clients have access to experienced business advisers with specialised sector knowledge who are able to undertake international assignments. Particular areas in which these skills are focused are in strategy development and change management. Practical advice is available, to clients wishing to establish overseas operations, on the selection of an appropriate overseas location taking into account management objectives, market conditions, taxation and other factors that affect their success.
Business Turnaround and Recovery
A full range of services for organisations and individuals in financial difficulty. In addition to the formal procedures to which clients may be subject, objective advice and assistance is provided to help clients meet their financial commitments without the need to implement such formal procedures.
Forensic Accounting and Litigation Support
Where clients are involved in disputes, whether in their domestic market or internationally, members provide specialist analysis and reporting services to support litigation and the resolution of disputes.
Business Valuations
These may be required for a variety of reasons. Experts with strong track records in establishing and valuing a company or other business structure. Where required, our reports are used to support litigation or negotiations with the tax authorities.
Fraud Prevention and Detection
Fraud is now a fact of business life and its cost to business is enormous. Advice is available on the prevention and detection of fraud, whether carried out using traditional methods or via the internet.
Training Services
Our company offer training services to clients and other firms to develop capabilities within and beyond the association.
Other professional advice
Our company maintain close contacts with business leaders, bankers, lawyers and other professionals in their community and can make introductions where required.
Personal
Many BONADEA’s associate firms provide personal advisory services.
Services include:
- pension planning
- investments
- retirement planning
- inheritance tax planning
- healthcare insurance
- life insurance
- creation and management of trust funds.