Remote work with a spouse KITAS visa - the how

[marcus]

What about IT-freelancing for companies abroad while residing in Indonesia with E31A-ITAS? Does it fall under work, which requires a work permit (IMTA)?

As Helpful Herbert said , 'work permit' cannot be issued to companies based outside Indonesia .

But what you do is considered work , so to make it legally clear to Immigration I suggest you to talk to your local 'Kantor Imigrasi' about your situation (see below what Immigration states) .

If the Immigration is concerned about the Indonesian Tax Law , you may propose to pay income tax through an Indonesian small business that your Indonesian spouse can set up for this purpose . This way you pay a very low tax and maybe can also provide services to companies/businesses based in Indonesia .

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From https://evisa.imigrasi.go.id/web/visa-selection

Type of Visa E31A - 1 YEAR​

.....
5. Other information
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e. You are prohibited from working by receiving compensation, wages, or any similar from individuals or companies in Indonesia, unless reported to immigration (using the multiple activity reporting process).

Poster's Note : The information above is also applicable to ITAS or ITAP resulted from this Visa .

 

[pantaiema]

What about IT-freelancing for companies abroad while residing in Indonesia with E31A-ITAS? Does it fall under work, which requires a work permit (IMTA)?

When you take on freelance remote work for a company abroad, you are not competing with or replacing local workers, so the manpower department who issue work permit (IMTA/RPTKA) won’t be concerned.

The key issue here is that you have an income and an ITAS. Having an ITAS/ITAP you are considered a tax resident of Indonesia. As Indonesia applies a global taxation system, all of your income, including earnings from overseas, is subject to Indonesian tax, while also taking into account any applicable Double Taxation Avoidance Agreements. I remember reading a case a person under spouse sponsored ITAS get caught for renting their home abroad without reporting it as an income.

I believe this is one of the main reason why they issue E33G for Remote Worker, so they could easily identify who are doing a remote work while having an Indonesian residence.

 

[centurion]

What about IT-freelancing for companies abroad while residing in Indonesia with E31A-ITAS? Does it fall under work, which requires a work permit (IMTA)?

Short answer - should be ok without work permit.

 

[savin399]

Hello, I've been reading the posts related to remote work on a KITAS visa, and the earliest source I found dates from 2020. If the admins find it necessary they can join my post with one of these, but I am here to ask a specific question

I am married to an Indonesian, so I am here with a spouse KITAS. Reading from the other posts, I found it pretty obvious that I can work remotely, although the officials can interpret differently.

My question is about the how: I won't have a legal residence in the country of my new job. I wonder if I should create my own consulting company here in Indonesia, or if it is okay to have a direct contract with the foreign company.

What would be the best way for that, also considering tax?

I struggled with the same question when I first came on a spouse KITAS. The tax part is tricky because technically you’re not a resident in Indonesia for work purposes, but you’re still tied to the US system.

I changed my legal domicile through SavvyNomad. They basically prepped all the forms for Florida residency, even the notary and DMV appointment. After that, everything tax-related became way easier to manage remotely.

 

[marcus]

I struggled with the same question when I first came on a spouse KITAS. The tax part is tricky because technically you’re not a resident in Indonesia for work purposes ...

I am not sure if I understood what you meant , but in my view , when you have a KITAS (residence permit) , you are also an Indonesian "Resident Tax Subject" , meaning you are supposed to pay Indonesian Income Tax (if the case) over your worldwide income , regardless of if you are in Indonesia for work purposes or not .

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Omnibus Law (UU no.11 Year 2020) - free translation
Article 1 1 1 (page 617 in my pdf copy - free translation)
Several provisions ... concerning Income Tax ... are amended as follows:

(1) Tax Subjects are:
a. private person; and ...
(2) Tax Subjects are differentiated into Inside/Domestic/Resident Tax Subjects and Outside/Abroad Tax Subjects.
(3) The Inside/Domestic/Resident 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 days within a period of 12 months; or
3. in a tax year, are residing in Indonesia and have the intention to reside in Indonesia;

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Explanation of Article 111, Article 2 of UU no.11 Year 2020 - free translation

a. Inside/Domestic/Resident Taxpayers are taxed on income either received or obtained from Indonesia or outside Indonesia, ...