Coming home to Indonesia, need guidance...

C

Cloudcat

Active Member
Joined
Mar 29, 2024
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24
Greeting everyone.
I am taking early retirement soon and want to come home to Indonesia as ex-WNI.
Been searching and studying a lot about Itas, Itap, including tax treaty between Indonesia and America, noticing different answers, experiences from friends here in this forum, and from available free online consultation. LOL…
I will take the steps to get the Itas for sure whatever the path ahead I shall walk.
Now is my question regarding “pajak” with the hope that my new friends here would kindly share and advise.
Tax payer in Indonesia should report all the assets, cash in and out in every detail in SPT.
  • Do we as WNA have to do the same, reporting our assets abroad, cash in and out in SPT?
  • How about retirement saving, do we have to pay tax too in Indonesia?
  • I read in the Tax Treaty, pension may be taxed in Indonesia if we are Indonesian Citizen or permanent resident. Itas holder is not considered permanent resident yet, I guess, correct?
Any advice and sharing will be highly appreciated.

Stay happy and healthy my new friends in Indonesia ….. 😊
 
A question hard to answer in few words but it depends on what and where and who owns it

Is it property in Bahamas in a trust? Or a savings account in Bank of America with $20k in it?

A villa in Dubai? Or $500k in Bonds in Japan held under ex wife name
 
Hi hello Snpark, thank you so much for responding. Mine is only saving in US bank (which should be fine, no tax), pre-tax retirement saving (401K), and monthly pension from past employment in US.
Would I put everything in SPT and reporting how much I earn and spend annually like WNI tax payer does, reporting biaya hidup and penghasilan each year. Oh, I am US citizen.
 
You could always "try" to open e.g HSBC premier or offshore account, get the money sent there, and then from there sent here or use the HSBC debit / credit card which would be self funding / paying

Anyway if you become WNI then you are not US citizen, so how can you then keep your accounts in US?

You either have to pick a passport or pick a banking country
 
Yes, HSBC is the best, that's the plan. Before was Citibank but they closed in Indonesia.
I will keep my US citizen and stay as Itas/Itap holder, otherwise I will lose my social security when I am eligible.
Looks like my plan is very thorough. The only thing bothering me is the SPT that taxpayer have to report every single in and out of their money in SPT.
Will I have to get the NPWP and file SPT?
 
You need an NPWP
filing? Not sure, but you don't need to do it this year anyway right?
Maybe just stay under the radar
or have some money here and declare that to keep them happy
 
I really appreciate your response, my new friend.
I am excited even though so many things to do and not the easy one.
I can go to sleep soundly and in peace now.
Thanks again, Snpark !!!!!! You are the answer to my prayer 🙏🙏🙏
 
Cloudcat said:
I really appreciate your response, my new friend.
I am excited even though so many things to do and not the easy one.
I can go to sleep soundly and in peace now.
Thanks again, Snpark !!!!!! You are the answer to my prayer 🙏🙏🙏
Click to expand...
I wish you all the best but just an advice, get good informations about the tax laws. A lot of people step into certain traps. In Indonesia nothing is a problem until it is a problem, everybody knows everything/can do everything until he can't.😅
That's nothing against snpark, what he said isnt wrong. Iam just saying be sure to know what's necessary in your situation. Sorry also..i can't help much in this case. Just a friendly advice.
 
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Will Cloudcat's earlier status have any bearing on a visa entitlement? As a US citizen I wonder if he is going to have to apply for the "golden visa" and stash a big lump of money here in a bank?
 
Cloudcat said:
Hi hello Snpark, thank you so much for responding. Mine is only saving in US bank (which should be fine, no tax), pre-tax retirement saving (401K), and monthly pension from past employment in US.
Would I put everything in SPT and reporting how much I earn and spend annually like WNI tax payer does, reporting biaya hidup and penghasilan each year. Oh, I am US citizen.
Click to expand...
If one has a KITAS one automatically is a tax-resident of Indonesia. One has to report worldwide income (pension, dividends, rental income, etc). See https://www.pwc.com/id/en/taxflash/assets/english/2021/taxflash-2021-07.pdf

And article 4 in https://jdih.kemenkeu.go.id/fullText/2008/36TAHUN2008UU.HTM

And one has to check also if there is a tax treaty between Indonesia and one's home country. E.g. the tax treaty between Indonesia and Australia (article 18) says: "Pensions (including government pensions) and annuities paid to a resident of one of the Contracting States shall be taxable only in that State.

Here you can check the tax treaty of your country USA with Indonesia https://datacenter.ortax.org/ortax/treaty/list
 
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harryopal1 said:
Yes, but Indonesia does not accept dual citizenship and he is keeping his US citizenship to maintain his pension entitlement.
Click to expand...
Oh, I see. Yes, that will complicate things.

One option is to stay in Indonesia not more than 180 days. Leave the country. This way one doesn't have to worry about being taxed in Indonesia.
 
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harryopal1 said:
Yes, but Indonesia does not accept dual citizenship and he is keeping his US citizenship to maintain his pension entitlement.
Click to expand...
There is a KITAS and KITAP specifically for ex-WNI. The requirements are minimal; just show you were previously a citizen and you have a few thousand dollars to pay for your living expenses. He can keep his US citizenship and stay indefinitely (but not work) on KITAS and KITAP.
 
Brian86 said:
There is a KITAS and KITAP specifically for ex-WNI. The requirements are minimal; just show you were previously a citizen and you have a few thousand dollars to pay for your living expenses. He can keep his US citizenship and stay indefinitely (but not work) on KITAS and KITAP.
Click to expand...
Thanks for clearing that up. I was wondering how that would sort out.
 
snpark said:
Yeh don't worry our resident know-it-all will be along shortly to correct me with copy pasted wiki and half a dozen youtube videos lol
Click to expand...
Hahaha..... that's why we need each other here.
Love this forum .......
 
harryopal1 said:
Will Cloudcat's earlier status have any bearing on a visa entitlement? As a US citizen I wonder if he is going to have to apply for the "golden visa" and stash a big lump of money here in a bank?
Click to expand...
There are so many types of visas.
I was mixed golden visa with silver hair visa, hahaha........, so I edited this chat.
Plan to get diaspora/ex wni visa (new in 2022), any suggestion?
 
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Samoerai said:
If one has a KITAS one automatically is a tax-resident of Indonesia. One has to report worldwide income (pension, dividends, rental income, etc). See https://www.pwc.com/id/en/taxflash/assets/english/2021/taxflash-2021-07.pdf

And article 4 in https://jdih.kemenkeu.go.id/fullText/2008/36TAHUN2008UU.HTM

And one has to check also if there is a tax treaty between Indonesia and one's home country. E.g. the tax treaty between Indonesia and Australia (article 18) says: "Pensions (including government pensions) and annuities paid to a resident of one of the Contracting States shall be taxable only in that State.

Here you can check the tax treaty of your country USA with Indonesia https://datacenter.ortax.org/ortax/treaty/list
Click to expand...
Thanks so much Samoerai, will check all the links.
I read before but there is saving clause that may affect the benefit of the resident of the contracting states (which made me pusing tujuh keliling)
 
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