Possibility to work remotely with spouse sponsored KITAP & NPWP

[BezRus]

Hello,
I have a KITAP (spouse sponsored) and currently working on renewing my MERP.

I have a few questions I want to ask because I have been trying to find answers and I am really confused with some answers I found...

1. I have unlimited KITAP, but they only gave me 2 years MERP. Is there prerequisites to get the unlimited MERP?
2.Can a spouse-sponsored KITAP holder work remotely (to an offshore company - no Indonesian entity)?
3.. I understand that I need to create NPWP and pay tax, as a remote worker. Do we follow the income tax brackets as Indonesian? Any advices on filing tax as remote worker?

Thank you for your guidance!

 

[Helpful Herbert]

1. Yes, next time you should find the option for an unlimited merp next time you renew
2. Yes
3. I believe you are only allowed to get an NPWP if you are employed by an Indonesian entity, so this part is probably not relevant in your situation.

 

[marcus]

I have a KITAP (spouse sponsored) ...

My answers below are assuming your spouse is Indonesian (a foreigner may also get a spouse KITAP "sponsored" by his/her foreigner spouse who is holding a KITAP) .

1. I have unlimited KITAP, but they only gave me 2 years MERP. Is there prerequisites to get the unlimited MERP?

You got a 2 years Re-Entry Permit (MERP) because the time unlimited one didn't exist before , but now you are eligible for it .

2.Can a spouse-sponsored KITAP holder work remotely (to an offshore company - no Indonesian entity)?

You can , but I think you need to report to your local Kantor Imigrasi first .

From what I understand , you may have 2 options :
1) If you have a work contract with a salary of US$5'000/month or more , you will have an additional official situation of a 'E33G Remote Worker' KITAP ;
2) I think that if your salary is lower than US$5'000/month , you may have other procedures with Immigration (I don't know) .

3.. I understand that I need to create NPWP and pay tax, as a remote worker.

Yes , according to the Indonesian Tax Law . I suggest you to talk to both your local Kantor Imigrasi & your local Kantor Pajak/Tax .

One way that you will not need a 'NPWP/Tax number' is if your local Kantor Imigrasi & your employer allow your Indonesian spouse to create a small Indonesian business and you work informally in it & receive the earnings through it (if so the income will be related to your Indonesian spouse's NPWP) . This option will result in a lot smaller income tax .

From Google AI : Income tax for small businesses with annual turnover of less than IDR 4.8 billion is levied at a rate of 0.5% of monthly gross turnover...

Do we follow the income tax brackets as Indonesian?

Yes . The Indonesian Income Tax Law threats foreigners & Indonesians equally . Income tax paid abroad can be deduced from the related Indonesian tax .

Any advices on filing tax as remote worker?

The Indonesian Tax Return Report is relatively simple and can also be done online . Any doubt you can ask your local Kantor Pajak or people here . I suggest you to declare your worldwide wealth since your first report .

 

[marcus]

3. I believe you are only allowed to get an NPWP if you are employed by an Indonesian entity, so this part is probably not relevant in your situation.

I think this could happen in the past , but now you request a NPWP online , so I guess the online system will allow anybody to get one (my Indonesian wife's bank got one for her even she having no job/business) .