BPJS Refund

[pantaiema]

I had recieve this BPJS refund amount of over 80k in USD equivilant. Would or should my USA Tax filings consider this overseas earned income and whee they tax me acordingly? This is already withheld the Indonesia Tax for the with drawl of a pension fund. As the same if penalizd to withdrawl of a 401k retirment. Is this amout subjected to double tax, the USA? Since this in oveseas pension plan and those funds came from that.

US$80k refund from BPJS ??
Top notch from Tbreaux

Refund is not an insurance claim. You only get the refund for the premium you have paid. I wonder how did you accumulate that sum considering the class 1, the highest BPJS premium for individual is Rp150k pm equivalent to US$9.62 and the BPJS only started on January 1, 2014 ?? Why there is no coverage in the news, televisions ??
Please share your knowledge, what the refund is all about??. Hundred of millions of Indonesian People might want to learn from you ....

 

[Samoerai]

US$80k refund from BPJS ??
Top notch from Tbreaux
View attachment 3890
Refund is not an insurance claim. You only get the refund for the premium you have paid. I wonder how did you accumulate that sum considering the class 1, the highest BPJS premium for individual is Rp150k pm equivalent to US$9.62 and the BPJS only started on January 1, 2014 ?? Why there is no coverage in the news, televisions ??
Please share your knowledge, what the refund is all about??. Hundred of millions of Indonesian People might want to learn from you ....

This is about BPJS-JHT. Read the posts in the beginning of this thread.

That kind of refund can result from a long period of working here as an expat.

Interesting question, though. Is the refund taxed in Indonesia as well as in USA?

I would say in Indonesia: 5% taxed. See screenshot. And also in USA according to the tax treaty and worldwide income definition.

 

[snpark]

I had recieve this BPJS refund amount of over 80k in USD quivilant. Would or should my USA Tax filings consider this overseas earned income and whee they tax me acordingly? This is already withheld the Indonesia Tax for the with drawl of a pension fund. As the same if penalizd to withdrawl of a 401k retirment. Is this amout subjected to double tax, the USA? Since this in oveseas pension plan and those funds came from that.

$80,000 ?

Or 80,000 rupiah. Which is $5

 

[pantaiema]

This is about BPJS-JHT. Read the posts in the beginning of this thread.

That kind of refund can result from a long period of working here as an expat.

Interesting question, though. Is the refund taxed in Indonesia as well as in USA?

I would say in Indonesia: 5% taxed. See screenshot. And also in USA according to the tax treaty and worldwide income definition.

Tax on income and Refund for your premium are two different things. Pension is an income so they are subject to income tax. The first image you show is the tax rate for income tax.

If the person is still working and earns Rp60m+pa the tax rate is 5%. As this is an income tax, you can not get it back.

For social security contributions payable by workers, the employees contribute 1% of payroll to the pension plans and another 1% to health care. So the 1% for health care paid by the employees is forgone if they don't use it. For Indonesian employees the other 1% taken from their salary is for their pension (JHT), they could take it either in lump sum or paid monthly after they get retired. For foreigners leaving Indonesia, I am not quite sure whether they could get it back if they do not stay in Indonesia as this is not a private pension. They might be able to, need to check it with the organisation holding that money. But to be anywhere near USD80k is highly unlikely considering this BPJS scheme just started around 2014.

For pensioners the income tax rate for those with aggregate income of Rp50m+is 5%. Pensioners in Indonesia do not pay the social security contributions.

 

[Samoerai]

Tax on income and Refund for your premium are two different things

Ha, yes. I agree, the refund regarding BPJS-JHT is not income. he just gets back all his contributions from over the years he worked as an expat in Indonesia. See post #11 in this thread: 3% (2% employer/1% employee).

So, indeed. He doesn't need to pay tax. Or maybe he does? Because every month he made a contribution from his salary, was this after tax or before tax?

This question should be answered by a tax consultant.

 

[centurion]

I had recieve this BPJS refund amount of over 80k in USD quivilant. Would or should my USA Tax filings consider this overseas earned income and whee they tax me acordingly? This is already withheld the Indonesia Tax for the with drawl of a pension fund. As the same if penalizd to withdrawl of a 401k retirment. Is this amout subjected to double tax, the USA? Since this in oveseas pension plan and those funds came from that.

This goes under refunded social security benefit (JHT-jaminan hari tua, or "old age security"). It is already taxed upon payment of your salaries from the employer. Social security payments are taxable only in the state where the payments have been done, according to the US-Indonesian double taxation avoidance treaty. So, should be no tax in US.