E33G visa 1 yr

[techsolutions]

Anyone know about this new visa if qualify 60k usd income,This comes with kitas ,

If having kitas but no Indonesia income is there a minimum responsibility of declaration of kitas 0 income or only if an Indonesia local income is above any threshold number

If There would be no tax as its foreign income tax paid at source country

 

[Balifrog]

Anyone know about this new visa if qualify 60k usd income,This comes with kitas ,

If having kitas but no Indonesia income is there a minimum responsibility of declaration of kitas 0 income or only if an Indonesia local income os above threshold number

If There would be no tax as its foreign income tax paid at source country

Mmm.. that 5.000 US a month

 

[Samoerai]

E33G-visa
In response to the growing trend of people opting for the remote worker and digital nomad lifestyle, the Indonesian Immigration Department has introduced a new “Remote Worker Visa (E33G), Temporary Resident Permit (KITAS). Two main requirements:

• Employment Contract (with a company registered outside of Indonesia)
• Yearly income of at least USD 60,000

Tax Residency in Indonesia
By having a KITAS, foreign nationals become an Indonesian tax resident and therefore must apply for an NPWP (Nomor Pokok Wajib Pajak/ Tax File Number) at the local tax office.

They must be responsible to file their annual tax report (usually in March).

Bali Digital Nomad Visa & Remote Worker KITAS (Indonesia) E33G

Stay 1 year in Bali while being employed by a company outside of Indonesia. KITAS Bali Indonesia digital nomad visa

bali.com

One has to declare one's world income.
Tax paid offshore can be credited in Indonesia.

 

[Brian86]

You will be required to pay Indonesian tax on your worldwide income of $60k+. It will be very important to understand the tax treaty between the source country and Indonesia to see if you can effectively avoid double taxation. Also the tax code of the source country and your country of citizenship, if different.

 

[jstar]

Once again one of these brilliant brain farts that will not be successful.

Companies like these already sent their people to Bali the previous 8 years:

Clients move forward with our approach

Growing organizations with online marketing is our mission. That is what we do it for and we are demonstrably good at it.

www.brandfirm.nl

And guess what, they have done that for 6 weeks or shorter during the winters to avoid problems. And staff is not so interested to stay much longer.

 

[pantaiema]

Anyone know about this new visa if qualify 60k usd income,This comes with kitas ,

If having kitas but no Indonesia income is there a minimum responsibility of declaration of kitas 0 income or only if an Indonesia local income is above any threshold number

If There would be no tax as its foreign income tax paid at source country

The E33G visa is intended for remote workers. Besides the requirement of USD $60k, you will also need an employment contract from the overseas company you work for. So if you are a self employed, sole trader, your company you work for must be registered in your own country.

Additionally, as others have mentioned, be mindful of the tax implications since Indonesia implements a worldwide taxation system. So even your earning is from overseas, you do not work in Indonesian Companies you might still subject to Indonesian taxation.

 

[marcus]

.......
Tax Residency in Indonesia
By having a KITAS, foreign nationals become an Indonesian tax resident and therefore must apply for an NPWP (Nomor Pokok Wajib Pajak/ Tax File Number) at the local tax office.

Is this information from a Indonesia Government's officer ?

I ask because from what I heard from more than 2 foreigners and from my own experience (knowing well about the resident taxpayer rule) curiously many Government tax officers told me/others that resident foreigners who don't have income from Indonesia (other than bank interest) do not need to declare income from abroad (people said that the Tax Office even denied giving a tax number to be able to declare) .
I asked maybe 4 times already (at the Tax Office) , the last time was last year .

 

[Wisnu]

Is this information from a Indonesia Government's officer ?

I ask because from what I heard from more than 2 foreigners and from my own experience (knowing well about the resident taxpayer rule) curiously many Government tax officers told me/others that resident foreigners who don't have income from Indonesia (other than bank interest) do not need to declare income from abroad (people said that the Tax Office even denied giving a tax number to be able to declare) .
I asked maybe 4 times already (at the Tax Office) , the last time was last year .

I'm not foreigner. Pensioner, work remotely from Indonesia providing consultancy services. Understood, I have to pay huge income taxes.

 

[Samoerai]

Is this information from a Indonesia Government's officer ?

I ask because from what I heard from more than 2 foreigners and from my own experience (knowing well about the resident taxpayer rule) curiously many Government tax officers told me/others that resident foreigners who don't have income from Indonesia (other than bank interest) do not need to declare income from abroad (people said that the Tax Office even denied giving a tax number to be able to declare) .
I asked maybe 4 times already (at the Tax Office) , the last time was last year .

Article 2 paragraf (3) of the law.

UNDANG

But also check the tax treaty of your home country with Indonesia.

 

[marcus]

Article 2 paragraf (3) of the law.
link to UU no.36 Year 2008

I know .

By the way , although no relevant change , we better read the revised Article 2 in the Omnibus Law (UU no.11 Year 2020) .
Article 1 1 1 (page 617 in my pdf copy - non-official translation)
Several provisions ... concerning Income Tax ... are amended as follows:
Article 2
(1) Tax Subjects are:
a. private person; and undivided inheritance as a unit to replace those who are entitled;
b. agency/institution; and
c. permanent establishment.
(1a) A permanent establishment is a tax subject whose taxation treatment is equivalent to that of a corporate tax subject.
(2) Tax Subjects are differentiated into Inside Tax Subjects and Outside Tax Subjects.
(3) The Inside Tax Subjects are:
a. private persons, whether they are Indonesians or foreigners, who:
1. reside in Indonesia;
2. has been in Indonesia for more than 183 (one hundred and eighty three) days within a period of 12 (twelve) months; or
3. in a tax year, are residing in Indonesia and have the intention to reside in Indonesia;
b. an agency/institution that is established or domiciled in Indonesia, ..
c. the undivided inheritance as a unit replacing those who are entitled.

But also check the tax treaty of your home country with Indonesia.

The (maybe 4) Government Tax officers who I talked to (at the KPP/Tax Office) : didn't ask my nationality and didn't mention tax treaty (my country has no tax treaty with Indonesia) .

 

[marcus]

Still no relevant modification from UU no.36 Year 2008 :

Explanation of Article 111, Article 2 of UU no.11 Year 2020 (not an official translation - page 1076 of my pdf copy) :
[...Inside Individual Tax Subjects become taxpayers if you have received or earned income the amount of which exceeds the Non-Taxable Income...
Outside Tax Subjects, both individuals and entities, also become taxpayers because they receive and / or earn income originating from Indonesia or receive and/or obtain income originating from Indonesia through a permanent establishment in Indonesia...
a. Inside Taxpayers are taxed on income either received or obtained from Indonesia or outside Indonesia, while Outside Taxpayers are taxed only on income originating from income sources in Indonesia;
b. Inside Taxpayers are taxed based on net income at a general rate, while Outside Taxpayers are taxed based on gross income with a commensurate tax rate...]

 

[pantaiema]

Is this information from a Indonesia Government's officer ?

I ask because from what I heard from more than 2 foreigners and from my own experience (knowing well about the resident taxpayer rule) curiously many Government tax officers told me/others that resident foreigners who don't have income from Indonesia (other than bank interest) do not need to declare income from abroad (people said that the Tax Office even denied giving a tax number to be able to declare) .
I asked maybe 4 times already (at the Tax Office) , the last time was last year .

The issue is that verbal statements made by tax officials at the tax office cannot be relied upon as a defence in the future. When the time comes, they may not be available, or they could simply deny what was said. This type of information is only useful if you have it in writing, such as through an email or WA if there is a possibility to chat with them to confirm it. Additionally, different regional tax offices might have varying interpretations.

For individuals with a KTP, the NIK and NPWP have now been integrated, but the process is not automatic and must be completed by the individual.

 

[marcus]

The issue is that verbal statements made by tax officials at the tax office cannot be relied upon as a defence in the future...

I know (but at least I have a witness) .
My point is that , the above being said by many Government Tax officers and I didn't see any Forum member saying they heard the contrary , makes me believe that it is improbable that these officers are mistaken and at least for now , it seems to be an internal tax policy .
Ibu Sri Mulyani (present Indonesian Finance Minister) told reporters that she was in favor of this policy (told by these tax officers) before 2020 , but the Legislators didn't agree with her as we see in the Omnibus Law .

For individuals with a KTP, the NIK and NPWP have now been integrated, but the process is not automatic and must be completed by the individual.

Yes , my NPWP is already my NIK (from my SKTT) , even it being non-effective (which means that I am not obliged to present the Indonesian Tax Return Reports) .

 

[marcus]

The article I mentioned above about Finance Minister Sri Mulyani is not this one below . This one seems related to the General Provisions and Tax Procedures Law (KUP Law) , which I did not read yet . This article below is more complete and , I guess , it was used to originate the other mentioned above . As a reference , this article is dated less than 1 month before the issuance of the Omnibus Law .

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

From https://pertapsi.or.id/rezim-pajak-penghasilan-untuk-ekspatriat-berubah-ini-kata-sri-mulyani
Title : Income Tax Regime for Expatriates Changed, Here's What Sri Mulyani Says (October 2020 - free translation from the original in Indonesian language)

The government has changed the taxation regime for foreigners working in Indonesia from a worldwide system to a territorial system...

Minister of Finance Sri Mulyani Indrawati said that the implementation of the new taxation regime is part of the changes to the Income Tax Law in the Job Creation Law (Omnibus Law, from poster).

"The imposition of PPh (income tax) for WNA who are domestic tax subjects is based on their income originating from Indonesia. So, we do not tax them if they have a job or source of income outside Indonesia," she explained...

The provisions regarding the change in the taxation regime for foreigners from a worldwide system to a territorial system are regulated in Article 4 paragraphs (1a), (1b), (1c), and (1c) of the KUP Law. Several of these paragraphs have only recently appeared in the Job Creation Law (Omnibus Law - from poster).

In accordance with the provisions of Article 4 paragraph (1a), foreigners who have become resident taxpayers are subject to PPh only on income received or obtained from Indonesia with 2 provisions. First, have certain expertise. Second, valid for 4 tax years calculated from the time they become residents.

"That is so that foreigners who work here [in Indonesia], what is taxed is their income originating from Indonesia," added Minister of Finance Sri Mulyani Indrawati.
The income referred to is income received or obtained by foreigners in connection with work, services, or activities in Indonesia with any name and in any form paid outside Indonesia.

However, the provisions of Article 4 paragraph (1a) of the KUP Law (General Provisions and Tax Procedures Law) do not apply to foreigners who utilize the Double Taxation Avoidance Agreement (P3B) between the Indonesian government and the government of the partner country or P3B partner jurisdiction where the foreign national earns income from outside Indonesia.

Further provisions regarding the criteria for certain expertise and the procedures for imposing income tax on foreigners in Article 4 paragraph (1a) of the KUP Law will be regulated by the Minister of Finance Regulation (PMK)...

 

[Samoerai]

Further provisions regarding the criteria for certain expertise and the procedures for imposing income tax on foreigners in Article 4 paragraph (1a) of the KUP Law will be regulated by the Minister of Finance Regulation (PMK)...

So, nothing changed for WNA ... until then, right?

 

[marcus]

So, nothing changed for WNA ... until then, right?

We need to check this UU KUP/General Provisions and Tax Procedures Law , but even if this change from a worldwide tax system to a territorial tax system is in it , I guess it contradicts what is in the Omnibus Law . Besides , I guess , it is discriminatory as benefits only foreigners .

Anyway , maybe this idea started since a long time ago , inducing tax officers to tell what they told me (& others) .

 

[jstar]

You make it unnecessary complicated Marcus. Déjà vu I must say.

It’s rather simple; Ibu Sri wanted to implement the new provisions as part of that Omnibus law in which foreigners in Indonesia would only be taxed on their Indonesian income.

That law was weakened and -as far as I know and acknowledged by tax officers- the whole relevant part for the WNA was never implemented. So in reality that means nothing changed and we’re still taxed on our foreign income.

Correct me if I’m wrong.

 

[marcus]

...as far as I know and acknowledged by tax officers- the whole relevant part for the WNA was never implemented.

Ok , good to know .

So in reality that means nothing changed and we’re still taxed on our foreign income.

Did you ask tax officers about this specifically ?

 

[pantaiema]

So, nothing changed for WNA ... until then, right?

While I also hope for a shift from worldwide taxation to territorial taxation, as far as I know, nothing has changed. This aligns with the information provided by international accounting firms specializing in worldwide taxation, such as EY and KPMG.

I have not had the time to review UU_No11_2020 and UU_No.7_2021 following their latest amendments. Perhaps someone who has read these more recent laws could share their insights so we can all benefit.

 

[marcus]

I have not had the time to review UU_No11_2020 and UU_No.7_2021 following their latest amendments. Perhaps someone who has read these more recent laws could share their insights so we can all benefit.

I made a quick search and :

• UU no.11 Year 2020 was substituted by UU no.6 Year 2023
• UU no.7 Year 2021 seems to be irrelevant for our discussion here .