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Remote working while on a Spouse sponsored KITAS.

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  • Remote working while on a Spouse sponsored KITAS.

    Hi everybody,
    I am a non Indonesian currently on a spouse sponsored KITAS as my wife is Indonesian, I am also currently working here and have an IMTA from an Indonesian company which I will soon be leaving (at the end of this month). I have been offered the opportunity to work remotely for a US based company.
    My questions are these:
    - I assume I do not need an IMTA for this role as it is remote working, and also as the company is not registered in Indonesia they would not be able to apply for one for me anyway?
    - I will be paid in to an Indonesian bank account (BNI) how do I declare the taxes for this role if according to Manpower and immigration I am unemployed? Will they not just assume that I am working without an IMTA.

    I'm quite confused regarding the legality of this so any help would be very helpful. I have checked elsewhere on the forum but can find no relevant info.

  • #2
    Originally posted by jakmatt91 View Post
    (1) I assume I do not need an IMTA for this role as it is remote working, and also as the company is not registered in Indonesia they would not be able to apply for one for me anyway?

    (2) ... how do I declare the taxes for this role .. ?

    (3) Will they not just assume that I am working without an IMTA...

    (1) Yes , IMTA/Work permit is only applicable to an Indonesian based company .

    (2) I suggest you open a small business in your Indonesian wife's name and receive the payment in her business's name , so her business will pay the income tax .
    Note : Each city may have different rules for micro/small business , better search the internet for something like : cara mendirikan usaha kecil di (city)

    (3) For them you will be working informally for your wife's business .

    Note : This is only my opinion , so if you want to be 100% sure about its legality better ask Immigration and Manpower (the ones that can deport you) . Can ask Kantor Pajak to know how to pay the income tax of your wife's business (small business pay very small tax , something like 1% of the revenue) .


    http://www.livinginindonesiaforum.or...esian-and-work (work under Article 61 of UU no.6/2011)
    Note : The link above is for ex-Indonesian KITAP but also valid for you with a wife sponsored KITAS or KITAP .

    http://www.livinginindonesiaforum.or...018#post246018 (no work permit for KITAS ikut istri , work in the wife's business??)

    http://www.livinginindonesiaforum.or...382#post245382 (see below a partial copy of Atlantis'post no.36)
    [..I have discussed with middle and high ranking pejabat (government officer) in the immigration who told me: for us (read: immigration officer) you are authorized to work. The "for us" has importance. It means that as long as nakertrans (Manpower government office) does not chime in, immigration may not bother you. If your wife opens her own business, you have reasonnable chances to be ignored by nakertrans. Why? Because your wife has no chance to get an IMTA for you if it is a family business...]

    http://www.pajak.go.id/eng/ (Tax office's website)

    http://www.expat.or.id/info/2008-IncomeTaxSDSN.pdf (Income Tax Law & Law Explanation)

    http://www.livinginindonesiaforum.or...-to-setup-a-CV (CV set-up)
    Note : There is an even smaller business than a CV

    http://www.hukumonline.com/klinik/de...an-usaha-kecil , Okt 2017 (small business , procedures & regulations)

    http://webbisnis.com/12-macam-keleng...-anda-ketahui/ (documents for opening a business)

    https://ekonomi.kompas.com/read/2016...ukup.Mendaftar (no need to business permit for micro/small business in Jakarta)

    Note : If necessary Google Translate .

    Comment


    • #3
      Hi guys, i am new to this site, but have something similar to the OP. I just got my spouse sponsored KITAP.. immigration visited me a few weeks ago and asked me how i earn money. I work for an American firm online. And my pay comes via paypal to an Indonesian bank. I even showed the immigration boys my laptop. They said it's all fine as I do not work for an Indonesian company. Happy days. Got stm already and ktp/kk process starting tomorrow. Luckily my agent is a smart guy and not too expensive either.

      Comment


      • #4
        Interesting information .

        Comment


        • #5
          Hi everyone, I have been toying with the idea of getting an NPWP (Tax number). As a KITAP holder an earning my money from the US (not locally) Does anyone think it will help to pay income tax? Will there be any complications if I do not? According to the post by Marcus, it seems that I should. How would I go about it and what is the general income tax percentage for someone like me?

          Comment


          • #6
            Originally posted by Darkknightdel View Post
            (a) ... Does anyone think it will help to pay income tax?

            (b) Will there be any complications if I do not?

            (c) ... what is the general income tax percentage for someone like me?

            (a) To pay Indonesian tax you must have the NPWP . Some banks may also ask for it in order to open an account .

            (b) I didn't hear of any complications yet (some 8 years ago I went to Kantor Pajak (Tax Office) and they told me that I didn't need to get it if I didn't have Indonesian income , but by the Law people with KITAS or KITAP must declare the worldwide income to Kantor Pajak . Better you ask them now about that .

            (c) 5% over the first Rp50 million of the income , 15% over the income part between Rp50 million and RpRp250 million , 25% over the income part between Rp250 million and Rp500 million , then finally , 30% over the income part which exceed Rp500 million .

            Note : the income above is the net income = total income - the allowed deductions . Tax paid abroad is deducted (if smaller) from the Indonesian tax (for the same income) .

            http://www.pajak.go.id/eng/ (Indonesian Tax Department)
            http://www.expat.or.id/info/2008-IncomeTaxSDSN.pdf (Income Tax Law & Law Explanation)
            http://www.expat.or.id/info/individualincometaxes.html (about income tax)
            https://www.online-pajak.com/id/daft...-orang-pribadi (NPWP online request)
            http://ketentuan.pajak.go.id/index.php?r=treaty (Tax Treaty between Indonesia and other countries)

            Comment


            • #7
              You do not need to have a work permit for remotely working for an offshore company. In doubt you can consult Biro Hukum in Manpower Ministry, but this was their explanation before.
              You can receive money on your account and report tax. For tax reporting check the double taxation treaty between Indonesia and the country where the money is coming from.

              Comment

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