Tax Consulting Engagement Letter Template for Indonesia

A Tax Consulting Engagement Letter is essential for establishing a professional relationship between tax consultants and their clients in Indonesia. This document is typically used when a company or individual requires specialized tax advisory services, compliance assistance, or strategic tax planning. The letter outlines the scope of work, deliverables, timelines, and professional fees while ensuring compliance with Indonesian tax regulations and professional standards. It's particularly important given Indonesia's complex tax environment and the requirements set forth by the Directorate General of Taxes (DGT) and professional bodies. The document must comply with various regulations including Law No. 6 of 1983 on General Tax Provisions and Minister of Finance Regulation No. 111/PMK.03/2014, which govern tax consulting services in Indonesia. The engagement letter serves as both a legal protection and a clear framework for the professional relationship.

1. Letter Head and Date: Professional letterhead including tax consultant's firm details, registration numbers, and date of the letter

2. Client Details: Full legal name and address of the client entity or individual

3. Subject Line: Clear indication that this is a Tax Consulting Engagement Letter

4. Opening Salutation: Formal greeting to the appropriate client representative

5. Introduction: Brief introduction confirming the client's request for tax consulting services and the consultant's acceptance

6. Scope of Services: Detailed description of the tax consulting services to be provided, including specific deliverables and any limitations

7. Professional Fees: Clear statement of fees, payment terms, and billing arrangements

8. Timeline: Expected duration or timeline for the services

9. Responsibilities: Outline of both consultant's and client's responsibilities, including information provision requirements

10. Confidentiality: Commitments regarding confidential information handling and data protection

11. Professional Standards: Statement of compliance with Indonesian tax consulting regulations and professional standards

12. Termination: Conditions and process for terminating the engagement

13. Acceptance: Request for client's confirmation and acceptance of the terms

14. Closing: Professional closing, signature block, and firm details