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Business Visa But More Than 183 days : Income Tax

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  • Business Visa But More Than 183 days : Income Tax

    How should I proceed after having reached +183 days in a year with regards to income tax while visiting Indonesia on 12 months business visa. I understand that I have to pay tax when reaching that limit per year.

    I am employed abroad but likely reach that limit due to very regular and lengthy business trips to the country.

    Is Indonesia executing this very strictly? Does immigration count your days and would immediately catch you when they see you reached that limit?

    Thanks.


  • marcus
    replied
    Originally posted by penelope1234 View Post
    (a) In Indonesia you are required to tax world income, So if you are paid salary abroad you should actually pay tax for that income in Indonesia.

    (b) If want to pay tax after +183 days how to proceed?

    (c) You are saying you have not heard that people getting salary abroad that stayed +183 days and did not pay tax in Indonesia on business visa did not get in trouble?

    (d) So Indonesian immigration after +183 days in a year would not stop you entering or exiting the country and start asking very detailed questions?

    (a) In case Indonesian Kantor Pajak says you need to pay Indonesian income tax over your foreign income (as a Resident Taxpayer) , then you can take the tax you paid in the foreign country as credit to calculate how much you pay in Indonesia (if the paid foreign tax is bigger than what you would need to pay in Indonesia , you don't need to pay anything in Indonesia) .

    (b) The first step is to get an Indonesian Tax Number (NPWP) , then annually (usually in March) you fill/present the Tax Return Report and pay the tax (if any) .
    I heard that Kantor Pajak is telling foreigners without Indonesian income/Work Visa that Kantor Pajak is not willing to give a Tax Number for them .

    (c) Yes .

    (d) Immigration officers may ask detailed questions sometimes , but very probably not related to income tax .


    http://www.pajak.go.id/eng/ (Indonesian Tax Department)

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

    https://www.online-pajak.com/id/daft...-orang-pribadi (NPWP/Tax Number online request)

    Leave a comment:


  • penelope1234
    replied
    (2) In Indonesia you are required to tax world income, So if you are paid salary abroad you should actually pay tax for that income in Indonesia.

    (1) If want to pay tax after +183 days how to proceed?

    (3) You are saying you have not heard that people getting salary abroad that stayed +183 days and did not pay tax in Indonesia on business visa did not get in trouble?

    (4) So Indonesian immigration after +183 days in a year would not stop you entering or exiting the country and start asking very detailed questions?

    Leave a comment:


  • marcus
    replied
    Originally posted by penelope1234 View Post
    (1) How should I proceed after having reached +183 days in a year with regards to income tax while visiting Indonesia on 12 months business visa.

    (2) I understand that I have to pay tax when reaching that limit per year.

    (3) Is Indonesia executing this very strictly?

    (4) Does immigration count your days and would immediately catch you when they see you reached that limit?

    (1) In terms of income tax you would be considered a "Resident Taxpayer" , although not a resident under the Immigration rule .

    (2) The last information I have is that the Indonesian Tax Office does not go after foreigners who do not get income from Indonesia (yet) . But to be 100% sure you better ask them yourself (go to any Kantor Pajak to ask - they use to be very helpful , you don't need to identify yourself) .

    (3) I never saw any similar case in which the foreigner had problem with Indonesian tax .

    (4) No , as far as I know . I never saw any case where Indonesian Immigration was involved with Indonesian tax .

    But Indonesian Immigration : does count the days to know you are within the limit of your stay permit & check if you are not working in Indonesia (by the Law , working with a Business Visa is a crime - although doing business may be considered work , by the Immigration understanding "doing business" is a very restricted type of work) .

    Leave a comment:

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