Digital Nomad, working for Aussie Company Remotely

TonyVov

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Dec 4, 2020
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16
Hai
Anyone with experience or advice on working remotely from Indonesia for an Aussie Company??

Are Aussie taxes due? If so which ones? I've read somewhere that Aussie company needs to withhold taxes for foreign resident employees.

Are Indonesian taxes due?

Any tips to manage this situation.

None of the work output is related to Indonesia. Prospective employee is Indonesia resident but expat. (Kitas)
 
Prospective employee is Indonesia resident but expat. (Kitas)

Your post is confusing.

You will be employing him yourself? IMTA etc? Sponsoring him?

How does he have a kitas already? From who?
 

If the person lives 183 days or more per year in RI, (s)he becomes a tax subject. Besides some specific exceptions, a foreign company can not employ people residing in Indonesia.

I have seen (European) companies letting their people work remotely for limited times, so they stay under the 6 months, in Bali. A kind of work-staycation. That way they circumvent all issues, it probably is not legal but condoned.
 
Your post is confusing.

You will be employing him yourself? IMTA etc? Sponsoring him?

How does he have a kitas already? From who?
Request is for a friend not in this board. current Itas is not related to work but family.

Currently work is out of Singapore with Work Visa but operated online from here and other locations. Singapore is changing residency requirements for this type of Visa, or clamping down on existing rules,.

Work company is multinational and can offer employment from several locations but is not operating in Indonesia.
 
So his kitas is sponsored by his family? Or spouse?
But no imta or work sponsor?
 
Basically yes. I am not 100% sure of Itas details but stay itas is not related to this job at all.

The work is done from a computer/internet and can be done anywhere as with many digital nomad and visitors. the employer and the 'customers' and activities are not in Indonesia.
Right now all work is officially done in Singapore with appropriate visa and tax but Sing. Is clamping down on residency days in country. So looking for alternate option.

I have already read several messages about this on the board it seems to be an area that does not have a ready solution. My initial question was about working for Australian entity while in Indonesia, but even that seems to be not normal. You would think Indonesian consultants would have similar issues if working for Australian entity online.

In my thinking i was hoping there was some kind of pathway involving consultancy agreement and maybe an Indo based HR agency but could not find anything so far.
 

If the person lives 183 days or more per year in RI, (s)he becomes a tax subject. Besides some specific exceptions, a foreign company can not employ people residing in Indonesia.

I have seen (European) companies letting their people work remotely for limited times, so they stay under the 6 months, in Bali. A kind of work-staycation. That way they circumvent all issues, it probably is not legal but condoned.
Thanks for feedback, it's kind of what i expected. It seems this world, particularly here, but really in most places, is still not ready to work from anywhere when the job allows.
 
You could ask yourself if a spouse sponsored ITAS does not permit someone to stay under the radar rather easily. And with all the nomads working from Starbucks for foreign entities and who even live here full time sharing a villa with others. Of course I’m not advocating anything illegal but when laws are interpreted different ways…
 
I guess I'm in the same boat. I am an Indian national staying here on a spouse-sponsored visa and working remotely for a US-based company. I get my salary credited to my Indian bank account, and then from there I transfer half of it to my Indonesian bank account.

I have to pay tax in India, that I know, but do I have to pay tax here also as the money is coming from my Indian personal account to my Indonesian account? Yes, I am staying more than 183 days here, and the amount transferred to my Indonesian account is around $1200 per month.

Of course, I will consult with some tax professionals from Indonesia, but I would love to hear other people's views who have experienced the same thing.
 
Yes you will have to pay tax. 20% I think because more than 183 days
Thanks for the information. Wow, I will be paying 50% tax on my salary, as in India I have to pay 30% tax. It's better to get my salary credited to my Indonesian account to avoid paying tax in India.
 
Thanks for the information. Wow, I will be paying 50% tax on my salary, as in India I have to pay 30% tax. It's better to get my salary credited to my Indonesian account to avoid paying tax in India.
Is the local bank account yours or is it your wife's? Are there any tax agreements between India and Indonesia as to what you pay in Indonesia for tax is deducted from the Indian taxes? Many nations have something. For 1,200 a month would it not be easier to just withdraw from ATMs and avoid transfers and all the documentation that goes along with it?
 
I guess I'm in the same boat. I am an Indian national staying here on a spouse-sponsored visa and working remotely for a US-based company. I get my salary credited to my Indian bank account, and then from there I transfer half of it to my Indonesian bank account.

I have to pay tax in India, that I know, but do I have to pay tax here also as the money is coming from my Indian personal account to my Indonesian account? Yes, I am staying more than 183 days here, and the amount transferred to my Indonesian account is around $1200 per month.

Of course, I will consult with some tax professionals from Indonesia, but I would love to hear other people's views who have experienced the same thing.

I'm sure you told me you are not working and living on savings/not income you transfer frequently but not regularly to Indonesia.;)

Use your Indian ATM card:unsure:
 
Is the local bank account yours or is it your wife's? Are there any tax agreements between India and Indonesia as to what you pay in Indonesia for tax is deducted from the Indian taxes? Many nations have something. For 1,200 a month would it not be easier to just withdraw from ATMs and avoid transfers and all the documentation that goes along with it?

It's under my name, and I have an account with Bank BRI. I don't know about any tax agreements between India and Indonesia, but I will check into this. I remembered that I acknowledged something related to tax while transferring money through wise.com and will go through it. ATM withdrawal is painful using an Indian Card because you can only take out a small amount of cash per transaction, and the charges that come with it are too much, like $2 per transaction plus 3.5% of the transaction amount. (currency conversion) plus 18% GST on currency conversion charges.
 
I'm sure you told me you are not working and living on savings/not income you transfer frequently but not regularly to Indonesia.;)

Use your Indian ATM card:unsure:

Yes, early when I came here to Indonesia, I left my job in India, and for a few months I was jobless and looking for a remote or freelance job, as in Lombok there is no big or good IT company that would hire me because of the rules. Fortunately, I got a job in February 2023 with a US-based company, and I have only transferred money twice from India to my Indonesian account; earlier, I used to transfer only small amount of money into my wife's account.
Using an Indian ATM card is painful due to limitations and charges.
 
I remembered that I acknowledged something related to tax while transferring money through wise.com

Oh dear. Ooops

And wise reports all its transactions to all the relevant countries involved.
So now you have admitted / agreed to something concerning transferring money to your account.

Usually it's a disclaimer about tax or something or being resident etc
 
I have only transferred money twice from India to my Indonesian account; earlier, I used to transfer only small amount of money into my wife's account.
So not really a pattern (≈problem) then.
 

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