Indonesian's tax

[snpark]

Transfer before Trump wakes up in the morning is usually the best option, but since Euro almost 20 and $ nearly 17 for me converting into IDR I quite like it when he wakes up grumpy and wants to blow things up.
Sheikh Mohammed al Maktoum (Dubai) used to wake up and announce 3 islands in the shape of trees, or an underwater hotel, or another tower over 1km, all depending what cheese he had before he slept.

Trump wakes up horny to press the red button for diet coke or obliterate Iran for the 7th time this year lol

 

[centurion]

If you have KITAS, you intend to live in the country by default. If you live in the country, you are a tax resident and need an NPWP according to the tax regulations.

If you do not have Indonesian income, you are obliged to report the foreign income if you have and pay the tax on it, after deduction by double taxation treaties. Depending on double taxation treatments, pension are often, but not always, taxed, and the tax goes by a progressive rate.

If you do not agree with the above, you should not get and NPWP at the first place.

 

[marcus]

... If you live in the country, you are a tax resident and need an NPWP according to the tax regulations.

Could you show the tax regulation that states that ?

I have only an old Law , but I think it is still valid (see below) .

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

Explanation of the Income Tax Law no.36 Year 2008
Article 2 , item (2) :
... , an individual taxpayer who receives income below the personal exemption is not required to register to obtain a NPWP .

 

[harryopal1]

Could you show the tax regulation that states that ?

I have only an old Law , but I think it is still valid (see below) .

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

Explanation of the Income Tax Law no.36 Year 2008
Article 2 , item (2) :
... , an individual taxpayer who receives income below the personal exemption is not required to register to obtain a NPWP .

How much is the personal extemption; monthly or annually?

 

[snpark]

How much is the personal extemption; monthly or annually?

• Progressive Tariff Structure (HPP Law):
  • Rp0 - Rp60 Million: 5%.
  • >Rp60 Million - Rp250 Million: 15%.
  • >Rp250 Million - Rp500 Million: 25%.
  • >Rp500 Million - Rp5 Billion: 30%.
  • >Rp5 Billion: 35%.
• Basic PTKP (Single Taxpayers): Generally no change from the previous year (Rp. 54,000,000/year for single taxpayers).

 

[centurion]

Could you show the tax regulation that states that ?

I have only an old Law , but I think it is still valid (see below) .

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

Explanation of the Income Tax Law no.36 Year 2008
Article 2 , item (2) :
... , an individual taxpayer who receives income below the personal exemption is not required to register to obtain a NPWP .

Regulation PMK No. 18/PMK.03/2021 and implementing regulation PER-23/PJ/2025 saying:

"Article 3
Domestic taxpayers are:
a. individuals, whether Indonesian citizens or foreign nationals, who:
1. reside in Indonesia;
2. are present in Indonesia for more than 183 (one hundred and eighty-three) days within a 12-month period; or
3. are present in Indonesia during a tax year and intend to reside in Indonesia;
.......
Art. 4
An individual, whether an Indonesian citizen or a foreign national, residing in Indonesia as referred to in Article 3 letter a number 1 is an individual who:
a. resides in a place in Indonesia that:
1. is controlled or can be used at any time;
2. is owned, rented, or available for use;
and
3. is not a place of transit for the individual;
b. has a primary center of activity in Indonesia that the individual uses as the center of personal, social, economic, and/or financial activities in Indonesia; or
c. carries out daily habits or activities in Indonesia, including activities that are a passion or hobby.
(2) The period of 183 (one hundred and eighty-three) days as referred to in Article 3 letter a number 2 is determined by calculating the length of time the individual taxpayer is present in Indonesia within a period of 12 (twelve) months, either continuously or intermittently, with a portion of a day counted as 1 (one) full day.
An individual is deemed to have the intention to reside in Indonesia as referred to in Article 3 letter a number 3, which can be proven by documents in the form of:
a. Permanent Stay Permit Card (KITAP);
b. Limited Stay Visa (VITAS) with a validity period of more than 183 (one hundred and eighty-three) days;
c. Limited Stay Permit (ITAS) with a validity period of more than 183 (one hundred and eighty-three) days;
d. a contract or agreement to undertake work, business, or activities in Indonesia for more than 183 (one hundred and eighty-three) days;
or
e. other documents that can demonstrate the intention to reside in Indonesia, such as a rental contract for more than 183 (one hundred and eighty-three) days or documents indicating the relocation of family members...."

and so on.

Having minimum 12 month KITAS means intention to reside in Indonesia, ergo you are a subject of a taxation, on worldwide income.

 

[marcus]

If you have KITAS, you intend to live in the country by default... Regulation : ...
An individual is deemed to have the intention to reside in Indonesia ... which can be proven by documents in the form of:
.....
c. Limited Stay Permit (ITAS) with a validity period of more than 183 (one hundred and eighty-three) days;

So a KITAS for 180 days does not prove the intention to reside in Indonesia .

and need an NPWP according to the tax regulations.

In my post no.23 above , I questioned only about the NPWP .

 

[centurion]

I questioned only the part you mentioned : "... and need an NPWP according to the tax regulations."

Anyone who is a tax resident and has income (onshore and offshore) must register for NPWP, according to UU No 6/1983 Tentang Ketentuan Umum dan Tata Cara Perpajakan (KUP), with amendments from that.

Latest regulation is PERATURAN DIREKTUR JENDERAL PAJAKNOMOR PER-7/PJ/2025

"Article 2
(1) Every Taxpayer who has fulfilled the subjective and objective requirements is required to register with the Tax Service Office whose jurisdiction covers the Taxpayer's place of residence or domicile and shall be given a Taxpayer Identification Number."

Subjective criteria would be that you are a tax resident (have a KITAS)
Objective would be -you have a taxable activity-income (i.e. foreign pension)

 

[snpark]

When you do your KITAS it's all done at the same time. It's not a pick and mix like choosing options on a Mercedes.

 

[jstar]

Nonsense from someone who probably uses an agent.

That’s the whole problem for many foreigners. It does not stop at immigration; the civil registry and tax office are completely different entities with their own requirements.

 

[marcus]

Anyone who is a tax resident and has income (onshore and offshore) must register for NPWP, ...

The problem is that you assume every foreigner tax resident who has an income , requires a NPWP .

Lets say a foreigner who came with an one year KITAS and US$100'000 , puts that in an Indonesian bank and gets monthly interests but does not have any other income ; does not legally need to register for a NPWP .

Besides that , some of us foreigner residents have been saying that (in many occasions) we have been told by Indonesian tax officers that we without any Indonesian income except bank interests & similar income taxed at source , don't need a NPWP .

 

[Hawk256]

Besides that , some of us foreigner residents have been saying that (in many occasions) we have been told by Indonesian tax officers that we without any Indonesian income except bank interests & similar income taxed at source , don't need a NPWP .

Not only have been told that we don't need one but have been refused one.

 

[centurion]

The problem is that you assume every foreigner tax resident who has an income , requires a NPWP .

Lets say a foreigner who came with an one year KITAS and US$100'000 , puts that in an Indonesian bank and gets monthly interests but does not have any other income ; does not legally need to register for a NPWP .

Besides that , some of us foreigner residents have been saying that (in many occasions) we have been told by Indonesian tax officers that we without any Indonesian income except bank interests & similar income taxed at source , don't need a NPWP .

If you receive income above threshold you are required to have one because you are required to submit yearly tax report . Not having one results in higher tax rates. Every foreigner who fulfils the objective criteria (residency) and subjective ( income) is a tax subject and needs tax number by law. It is clear by regulations as a blue sky day.

 

[centurion]

Not only have been told that we don't need one but have been refused one.

It does not mean it will be enforced suddenly.

Most of Indonesian regulations are designed in a such way that can be weaponized against you anytime and anyway.

 

[centurion]

The problem is that you assume every foreigner tax resident who has an income , requires a NPWP.

That is exactly what regulations are saying, not my assumption.

 

[snpark]

Well nowadays when you want to open a bank account they request your NPWP even when you update your info annually

It is mandatory for new KITAS
Doesn't mean you need to pay tax or even submit any report, or just submit a report with zero tax paid (that is possible, as I have done that, been sent a tax letter reminding me to submit, I gave it to my agent, she said leave it with me Pak I will sort that)

Remember times changing under this new guy, previously very simple and fast to receive large amounts US$ and Euro from overseas into my personal BCA, now I get asked to confirm (by W/A) who sent it, why, how long I know him, etc etc and very rare occassions some backup info.

Of course I already anticipate this, so already send my bank girl the sender passport, that I know him years, he is paying me from his own account from his own money savings from income for my fees for some work I did for him in Dubai advising on his project there, and I even make some invoice or something.

None of which BCA really bothered about, it's just box ticking. Like when they insist on my UK tax number even though I left in 1992, I gave them some random 8 digit number to put on their computer.

Even your tax number remains the same, years ago I showed them the original, now I just tell them the number, who knows if I got the last 2 digits round the wrong way sometimes to check their system, they've never bothered me, and even the bank sometimes can get their own numbers wrong.

Anyway I digress
Point is I don't think we are their main target for evading tax, we all contribute directly and indirectly which is more than these digital nomads do.

 

[marcus]

... If you live in the country, you are a tax resident and need an NPWP according to the tax regulations ... Anyone who is a tax resident and has income (onshore and offshore) must register for NPWP, ... Article 2
(1) Every Taxpayer who has fulfilled the subjective and objective requirements is required to register with the Tax Service Office ... and shall be given a NPWP."

That is exactly what regulations are saying, not my assumption.

The difference between what you said and the Regulation is that :
a) first you said that just being a 'tax resident' was enough to require a NPWP ;
b) later you said that that being a 'tax resident' + 'having an income' were enough to require a NPWP.

But the Regulation states : "Every Taxpayer who has fulfilled the subjective and objective requirements" must have a NPWP .

The Regulation does not state but you added that :
Subjective criteria would be that you are a tax resident (have a KITAS)
Objective would be -you have a taxable activity-income (i.e. foreign pension)

So , in my view what you said is not what the Regulation states .

 

[marcus]

It is mandatory for new KITAS

Assuming you mean that a NPWP is needed for a new KITAS , I know relatively well the Immigration rules and cannot believe .

Can you show us the proof of that ?