Indonesian's tax

[snpark]

Transfer before Trump wakes up in the morning is usually the best option, but since Euro almost 20 and $ nearly 17 for me converting into IDR I quite like it when he wakes up grumpy and wants to blow things up.
Sheikh Mohammed al Maktoum (Dubai) used to wake up and announce 3 islands in the shape of trees, or an underwater hotel, or another tower over 1km, all depending what cheese he had before he slept.

Trump wakes up horny to press the red button for diet coke or obliterate Iran for the 7th time this year lol

 

[centurion]

If you have KITAS, you intend to live in the country by default. If you live in the country, you are a tax resident and need an NPWP according to the tax regulations.

If you do not have Indonesian income, you are obliged to report the foreign income if you have and pay the tax on it, after deduction by double taxation treaties. Depending on double taxation treatments, pension are often, but not always, taxed, and the tax goes by a progressive rate.

If you do not agree with the above, you should not get and NPWP at the first place.

 

[marcus]

... If you live in the country, you are a tax resident and need an NPWP according to the tax regulations.

Could you show the tax regulation that states that ?

I have only an old Law , but I think it is still valid (see below) .

--------------------

Explanation of the Income Tax Law no.36 Year 2008
Article 2 , item (2) :
... , an individual taxpayer who receives income below the personal exemption is not required to register to obtain a NPWP .

 

[harryopal1]

Could you show the tax regulation that states that ?

I have only an old Law , but I think it is still valid (see below) .

--------------------

Explanation of the Income Tax Law no.36 Year 2008
Article 2 , item (2) :
... , an individual taxpayer who receives income below the personal exemption is not required to register to obtain a NPWP .

How much is the personal extemption; monthly or annually?

 

[snpark]

How much is the personal extemption; monthly or annually?

• Progressive Tariff Structure (HPP Law):
  • Rp0 - Rp60 Million: 5%.
  • >Rp60 Million - Rp250 Million: 15%.
  • >Rp250 Million - Rp500 Million: 25%.
  • >Rp500 Million - Rp5 Billion: 30%.
  • >Rp5 Billion: 35%.
• Basic PTKP (Single Taxpayers): Generally no change from the previous year (Rp. 54,000,000/year for single taxpayers).

 

[centurion]

Could you show the tax regulation that states that ?

I have only an old Law , but I think it is still valid (see below) .

--------------------

Explanation of the Income Tax Law no.36 Year 2008
Article 2 , item (2) :
... , an individual taxpayer who receives income below the personal exemption is not required to register to obtain a NPWP .

Regulation PMK No. 18/PMK.03/2021 and implementing regulation PER-23/PJ/2025 saying:

"Article 3
Domestic taxpayers are:
a. individuals, whether Indonesian citizens or foreign nationals, who:
1. reside in Indonesia;
2. are present in Indonesia for more than 183 (one hundred and eighty-three) days within a 12-month period; or
3. are present in Indonesia during a tax year and intend to reside in Indonesia;
.......
Art. 4
An individual, whether an Indonesian citizen or a foreign national, residing in Indonesia as referred to in Article 3 letter a number 1 is an individual who:
a. resides in a place in Indonesia that:
1. is controlled or can be used at any time;
2. is owned, rented, or available for use;
and
3. is not a place of transit for the individual;
b. has a primary center of activity in Indonesia that the individual uses as the center of personal, social, economic, and/or financial activities in Indonesia; or
c. carries out daily habits or activities in Indonesia, including activities that are a passion or hobby.
(2) The period of 183 (one hundred and eighty-three) days as referred to in Article 3 letter a number 2 is determined by calculating the length of time the individual taxpayer is present in Indonesia within a period of 12 (twelve) months, either continuously or intermittently, with a portion of a day counted as 1 (one) full day.
An individual is deemed to have the intention to reside in Indonesia as referred to in Article 3 letter a number 3, which can be proven by documents in the form of:
a. Permanent Stay Permit Card (KITAP);
b. Limited Stay Visa (VITAS) with a validity period of more than 183 (one hundred and eighty-three) days;
c. Limited Stay Permit (ITAS) with a validity period of more than 183 (one hundred and eighty-three) days;
d. a contract or agreement to undertake work, business, or activities in Indonesia for more than 183 (one hundred and eighty-three) days;
or
e. other documents that can demonstrate the intention to reside in Indonesia, such as a rental contract for more than 183 (one hundred and eighty-three) days or documents indicating the relocation of family members...."

and so on.

Having minimum 12 month KITAS means intention to reside in Indonesia, ergo you are a subject of a taxation, on worldwide income.

 

[marcus]

If you have KITAS, you intend to live in the country by default... Regulation : ...
An individual is deemed to have the intention to reside in Indonesia ... which can be proven by documents in the form of:
.....
c. Limited Stay Permit (ITAS) with a validity period of more than 183 (one hundred and eighty-three) days;

So a KITAS for 180 days does not prove the intention to reside in Indonesia .

and need an NPWP according to the tax regulations.

In my post no.23 above , I questioned only about the NPWP .

 

[centurion]

I questioned only the part you mentioned : "... and need an NPWP according to the tax regulations."

Anyone who is a tax resident and has income (onshore and offshore) must register for NPWP, according to UU No 6/1983 Tentang Ketentuan Umum dan Tata Cara Perpajakan (KUP), with amendments from that.

Latest regulation is PERATURAN DIREKTUR JENDERAL PAJAKNOMOR PER-7/PJ/2025

"Article 2
(1) Every Taxpayer who has fulfilled the subjective and objective requirements is required to register with the Tax Service Office whose jurisdiction covers the Taxpayer's place of residence or domicile and shall be given a Taxpayer Identification Number."

Subjective criteria would be that you are a tax resident (have a KITAS)
Objective would be -you have a taxable activity-income (i.e. foreign pension)

 

[snpark]

When you do your KITAS it's all done at the same time. It's not a pick and mix like choosing options on a Mercedes.