View Full Version : Income Tax Law
I found an English translation of the Law (with explanations) , updated up to year 2000 , at www.dannydarussalam.com (http://www.dannydarussalam.com) , click "UU PPh" at title "Download UU Pajak" (part of it is copied below).
Note(13/March/2010) : This Law was valid until Dec/2008 . For Jan/2009 and on , see post 8 below for the new Law UU36-2008.
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 old text of 1983. This text has been legalised by Pak SBY in September 2008 and is valid since January 1st 2009.
This is unfortunately the main problem with english translations. They tend to come out just before that the original version get outdated!
However, if one go through the link you proposed, one will already have a good idea about how it works. There are obviously some change in the new version of the law, but I doubt that it is radically different. I haven't took time to go through it yet though.. :o
But for the last year's annual statement (SPT Tahunan) to be presented this month (Mar/2009) to the Kantor Pajak (Tax Office) , the applicable law is UU number 17 , year 2000 , which is the one I mentioned in the first post above .
About foreigners to declare income from outside Indonesia , 4 different officers told me (not together and in different days) that , in cases like mine (no job anywhere, income in my country only from interests which are taxed as "final" , like deposit certificates and saving accounts) , there is NO more Indonesian income tax applicable . The last officer (an old aged one) told me to declare here with form 1770 and add a statement "Surat Peryataan" explaining the situation : .. selama tahun 2008 saya tidah bekerja dan tidak memperoleh penghasilan apapun kecuali dari bunga deposito dan bunga tabungan yang sudah dikenakan pajak final.....
Their response differ on the necessity of declaring my belongs in my country .
can any one told me how to fill up the for the personal income tax ? any guide lene or reference for me to refer ?
I got all I need at the "Kantor Pajak" . Check which office you need to go at www.pajak.go.id (http://www.pajak.go.id) (for English version , first use google , than click "Translate this page"), at "Alamat Kantor.." , enter your area adress (kelurahan and kecamatan) and click "cari". At the pajak office they will give you a specific set of forms for your specific case , a manual to help you fill the forms (but in Indonesian language) , and answer all your questions .
Revision :
I did read at this Forum that for Jakarta , there is a specific tax office for foreigners .
New Indonesian Income Law , UU36-2008 English version , see here :
http://www.expat.or.id/info/2008-IncomeTaxSDSN.pdf
And a very useful explanation of the tax law by PKF :
http://www.pkf.com/site/webdav/site/...ide%202010.PDF
Makasi Marcus, now I just need a Taxation Lawyer to interpret all of that but I'm sure it will be useful for many of us.
I tried to give you some rep for your contribution but as usual the forum won't allow me for some unknown reason, maaf ..
The reason is simple, Om. Before giving rep again to Marcus, you need first to give rep to 20 other users before being allowed to give Marcus. Same would apply of course if you would wish to give rep twice to any other users.
The reason is simple, Om. Before giving rep again to Marcus, you need first to give rep to 20 other users before being allowed to give Marcus. Same would apply of course if you would wish to give rep twice to any other users.
20???, no wonder there is a queue waiting, I'll forget who I wanted to give rep to before that number is reached...
Didn't you tell me once that you have a person with a secretary background in your acquaintances? You may ask this person to keep a record of your rewarded posters... :wink2:
My wife is a tax official, works in public relations and gives tax education (sometimes to bules). If you want, I can ask her.
20???, no wonder there is a queue waiting, I'll forget who I wanted to give rep to before that number is reached... I give him one for you but it won't help much because I don't have your power lol
I give him one for you but it won't help much because I don't have your power lol
Makasi eksotia, but please understand I have no power, except when I put on my special Red and blue suit, with cape, and fly out at night to fight Crims and other miscreants, but please keep it a secret ... :lol:
Dear Marcus and other Older Expats,
I am an Indian, being working here for last 10 years.
1. Can you please clarify my Tax liabilites? Supposing my Gross Income for 1 Year is Rp. 100.000.000( 100 Million). How will be my tax calculated? Please show me the calculation steps. I have a 71 page document which I am about to read, but your help will provide me a guideline.
2. Conditions: I do not own a NPWP number.
3. What is the exit tax? Is it paid over and above the income tax? Is paying the exit tax enough? There is no need to pay the income tax?
You can also mail me the sheet at
[email protected]
Thanks and Regards
Neeloy.
Working backwards:
3.d. You are legally obligated to pay Income Tax.
3.c. Paying Exit Tax does NOT excuse you from paying Income Tax.
3.a/b. Exit Tax is (thoeretically) a pre-payment of Income Tax. It is levied on exit from Indonesia on individuals that would be liable for Income Tax but cannot show a valid NPWP (Tax Registration Number/Certificate).
2. Get thee an NPWP Number; you are legally obligated to do so, if liable for Indonesian Income Tax. ie have Indonesian Income and/or are resident in Indonesia for more than 183 days in any one year. [10 years definitely qualifies!] I believe "sunset policy" applies til the end of this year. ie You may register for an NPWP without legal penalty (if you are overdue for registration).
1. From Marcus' figures below:
a: Gross Income = 100jt
b: less Basic Deduction = 15.84jt
c: less Deduction 1.32jt for spouse, if applicable.
d: less Deduction(s) for child(ren) 1.32jt per child (upto 3), if applicable.
e: the first 50jt of the balance @ 5%, etc. (See below)
f: Divide tax liability by 12 and pay monthly (by the 15th)
You can check at www.pajak.go.id (http://www.pajak.go.id) . The last time I saw it was : per year income up to Rp50 Juta , 5% ; from Rp50 J to Rp250 J , 15% ; from Rp250 J to Rp500 J , 25% ; and above Rp500 J , 30% . I am not sure , but I think to that you can deduct Rp15.84 J , and Rp1.32 J for each dependent (up to 3) , ... Note : For example , if one's salary is 75J net per year , apply 5% on the first 50J , and 15% on the remaining 25J . I think the boss need to pay the employee's income tax every month to the Kantor Pajak .
<PS Answering this question can in no way be construed as an admission that I am OLD!>
exit tax[/B]? Is it paid over and above the income tax? Is paying the exit tax enough? There is no need to pay the income tax?..Neeloy.
1)I suggest you to start reading the income law . See here the English version http://www.expat.or.id/info/2008-IncomeTaxSDSN.pdf . The law applicable to simple employees is only a small part of it , very few pages , simple , and probably similar to the law at your own country . You can start reading article 17 (tax rates) , then article 7 (personal exemptions) , if married , article 8 (married taxpayers) , not so relevant article 16 (methods of tax calculation) , and a little about article 21 (tax withhold) , and later you can read other articles applicable to your situation .
2) If you are an employee without a NPWP , article 21 , item 5(a) states a 20% higher tax withhold compared to a regular taxpayer (what your boss deduct from your monthly salary to send to the tax office) .
3) What I understand about the exit tax (fiskal) from what I did read here , is that you can get the credit of it when you make the annual tax report . You don't pay the exit tax if you have a NPWP .
Like in any other country , one MUST pay income tax if he/she earns income above the exemption(s)/deductible(s) , except very few special people (article 3).
Well, perhaps my vocabulary was not perfect, by Older Expats I meant who were in the forum from quite some time. I am an new entrant.:dance:
And 10 years was my typographical error..it been 10 months only..:)..planning to go home in November....
Thanks everyone. Please do keep updating if anything else required.
Regards,
Neeloy.
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