View Full Version : NPWP - Income Tax
At the "expat.or.id" it is still stated that foreign people who live in Indonesia have to pay income tax in Indonesia for their overseas income also . I went 2 times to Kantor Pajak , some years ago , and they assured me that income outside Indonesia do not pay any Indonesia's income tax (although I have to declare to them).
Could this information be checked again ?
We don't have a good tax consultant contributing to the expat site anymore :( Unfortunately, the great contributor we had before passed away.
If anyone knows a knowledgeable tax professional that could help us update our articles (if needed), please let us know !
I was talking to a tax consultant a couple of weeks ago and he said that I would have to declare any income from overseas.
I have the form used to file a tax return and it asks for a list of overseas income, too.
If your country has a tax treaty with Indonesia, then the tax on income originating in that country would be paid there.
But if the rate applied on that type of income is higher here, you may have to pay the difference here, if I understand it correctly.
I have used Prijohandojo, Boentoro & Co at Menara Imperium for 10 years now and they do a great job completing my annual tax returns and filing them with the tax office. They work for companies, charities and private individuals, and cost far less than the big companies like PriceWaterhouseCoopers (unless it requires the attention of a senior partner like Mr. Prijohandojo himself). He did 20 years with PA Consulting and knows his stuff, and all his staff speak great English. See www.pb-co.com (http://www.pb-co.com) . My personal advisor is Hentrietta Kristanto who is a senior manager in the organisation.
I found a very good income tax law translation with explanations , updated up to year 2000 , at www.dannydarussalam.com , "Download UU Pajak" , "UU PPh" (English and Indonesian versions).
I found a very good income tax law translation with explanations , updated up to year 2000 , at www.dannydarussalam.com (http://www.dannydarussalam.com) , "Download UU Pajak" , "UU PPh" (English and Indonesian versions).
Be aware that the english version proposed is not valid anymore.:(
The Income Tax is now regulated by the undang undang nomor 36 tahun 2008 which is the 4th modification of the all text of 1983. This text has been legalised by Pak SBY in September 2008 and is valid since January 1st 2009.
This March I presented the income tax forms to the Indonesian "Kantor Pajak" . As this was from income in 2008 , the above law I mentioned (English version) was still applied and according the Kantor Pajak officials , income outside Indonesia of the "final taxable" type ( which was my case ) is not taxable in Indonesia . And one senior officer even told me that it was not necessary to mention that , nor the list of my belongings outside Indonesia . Instead , just to annex a letter explaining the type of the income .
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