How do you guys invest?

[make_batik_great_again]

To see if your numbers add up

Ok, I see. So, that data about earned interest is just for information (whether or not the development of your total assets makes sense), it will not be considered in the calculation of the tax.

 

[jstar]

It is somewhat different as many western countries where you’re not supposed to report something that is not taxable. They really want to know everything. And that’s a big reason why they (can) squeeze ordinary people who ‘forgot’ in the tax amnesty programs. “But but, I have payed taxes on that!” is not a valid argument here.

 

[snpark]

Wait until you die and then they tax you again

 

[jstar]

Wait until you die and then they tax you again

One way or the other they will get their money.

 

[make_batik_great_again]

Wait until you die and then they tax you again

Although there is no inheritance tax here

 

[snpark]

Although there is no inheritance tax here

You'll be dead anyway

 

[make_batik_great_again]

You'll be dead anyway

I‘ll be still reading this forum to check how you guys are doing

 

[vocalneal]

Put 60% of capital in a longterm platform and keep 40% liquid.

 

[make_batik_great_again]

If you have npwp here you pay less tax on your interest
Even Hsbc savings account will credit interest
Then deduct tax
Then credit back your higher allowance difference

What kind of allowance do you mean? I always thought taxes on interest are the same for everyone (20% on interest from a deposito, 15% on FR bonds, 10% on ORI bonds). What allowance is there? What is the allowance (or reduced tax rate?) for people with NPWP in these cases?

 

[jstar]

You should look at it the other way around; If you don’t have a NPWP you pay more PPh (21-23) taxes, namely mostly double. For the 21 I think it’s even times four.

 

[snpark]

What kind of allowance do you mean? I always thought taxes on interest are the same for everyone (20% on interest from a deposito, 15% on FR bonds, 10% on ORI bonds). What allowance is there? What is the allowance (or reduced tax rate?) for people with NPWP in these cases?

Yes. If you register your tax number you pay less tax. I did / do as per my Hsbc statements. They take 20 but then refund 10
For my Bonds I don't even recall paying tax or at least it never shows on my statements.

 

[make_batik_great_again]

Yes. If you register your tax number you pay less tax. I did / do as per my Hsbc statements. They take 20 but then refund 10
For my Bonds I don't even recall paying tax or at least it never shows on my statements.

Oh wow, you only need to pay 10% on the interest from a deposito? I always thought it is always 20% if tax-resident in Indonesia. My bank is informed about me having a NPWP, but I never got a refund on the paid tax on interest from a deposito.

 

[gemima]

Yes. If you register your tax number you pay less tax. I did / do as per my Hsbc statements. They take 20 but then refund 10
For my Bonds I don't even recall paying tax or at least it never shows on my statements.

Maybe I need to speak to my RM because I'm pretty sure I pay 15% on my FR bonds (and the bank has my NPWP) - I never see it in the account because they just pay out the total after they take off the tax. I have a payout coming up in May so I'll check then.

 

[jstar]

Yeah, it seems to be a specific case. Perhaps they like Stephen…

 

[make_batik_great_again]

Confusing, really. Never heard of someone having to pay less than 20% taxes on deposito‘s interest. Anyone else here experienced something like that?

Regarding FR: That seems explainable...they probably just pay out the after-tax amount.

 

[pantaiema]

Maybe I need to speak to my RM because I'm pretty sure I pay 15% on my FR bonds (and the bank has my NPWP) - I never see it in the account because they just pay out the total after they take off the tax. I have a payout coming up in May so I'll check then.

I am not quite sure about this. But what I believe here is that they are considered as two different instruments.

- FR Series Bonds is an investment instrument issued by the Indonesian government for a specified term in IDR with fixed interest. I believe these are similar to T-Bond in the US and/or Gilts in the UK
-Saving Bonds although functioning quite similar to FR bonds, e.g The issuer will repay your principal investment at the saving's/bond's maturity plus yield/interest earned, but they are considered as a different instrument as they have differences such as tradeability.

In any other countries the tax between Investment Bonds and Savings Bonds are also treated differently.

I understand while the tax for saving Bond in Indonesia is 20% but Investment bonds are taxed from 15% to 10%.

Indonesia: Law updated on bond-related investments and VAT for retail merchant tenants

Benjamin Simatupang and Siti Nimah Fitriah of GNV Consulting discuss new guidance in relation to bond-related investments and retail merchant tenants.

www.internationaltaxreview.com

 

[snpark]

"GR-91 reduces the WHT rate on bond-related investment earned by resident taxpayers and PEs from 15% to 10%. "

As I said, if you have KITAS/P and NPWP the tax is only 10%

 

[snpark]

Bonds are Bonds. The clue is in the name
All are "investments". You invest in the Government. You get a fixed return and a guaranteed return on your capital on a certain date

 

[snpark]

You are lending your money to the Govt for them to spend on hosting World Peace Tolerance Beach Volleyball Olympics

 

[snpark]

Or as the Dalai Lama would say "suck my tongue"