Tax planning for US Expat

[Jaime C]

@Jaime C , The $25k x 2 discussion was for meeting the E32A visa requirement in which we need to invest those amounts in Indonesia. Otherwise, I would not have investing our money in Indonesia bank, .

I have heard good things about Fidelity. I am with Charles Schwab and they have checking account and nice credit card, no foreign transaction fees for expat as well.

Sounds like you are a US citizen as well since you are familiar with US assets.

Do you mind if I reach out to you over DM to follow up?

I generally prefer to keep topic discussions in the forum, so others can benefit from the information.

 

[marcus]

... Good to hear that BCA allows it as it has the best atm network in Indo.

The size of the BCA ATM network is irrelevant to us because most (if not all) Indonesian banks use/share each other's ATM networks . All ATM & ATM cards show flags like : 'ATM Bersama' , 'Prima' , 'Alto' and/or 'Link' , so we know which ATM a specific ATM card will be accepted .

I presume you do not have the NPWP and BCA never reported you to DGJ?

I think that to comply with rules about money laundering & tax , the bank may ask for the NPWP .
I always had low amount of money in Indonesia , so I was asked for it only once in around 10 banks .

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

... Through Minister of Finance Regulation No. 19 of 2018, banking institutions are required to report customers with a balance of at least Rp1 billion (was Rp200 million)...

This regulation allows the Directorate General of Taxes/Pajak (DGP) to evaluate any agreements and/or practices aimed at avoiding tax information obligations ... (from https://klikpajak.id/blog/saldo-rekening-diatas-1-miliar/)

 

[jstar]

The size of the BCA ATM network is irrelevant to us because most (if not all) Indonesian banks use/share each other's ATM networks . All ATM & ATM cards show flags like : 'ATM Bersama' , 'Prima' , 'Alto' and/or 'Link' , so we know which ATM a specific ATM card will be accepted .

Eh, who is ‘us’ ?

You do realize you have to pay when using your card on one of those machines right? Unlike in the EU or so, transactions with machines from other banks and on other networks are NOT always free. Also if you transfer to a merchant in a shop -what we do quite a lot- it also could cost additional money if they are customer of a different bank.

So yes, banking with BCA or so offers advantages and is relevant.

Perbandingan Biaya di Atm Link, Bersama, Prima dan Alto

Oleh Berita Bisnis

kumparan.com

 

[jstar]

To the OP; I do agree with SNPark’s assessment the ‘doing nothing’ might be best in your case and not that risky. If you’re going the ex-WNI path it might work out a bit different in the end. Someone like @Banana72 would know.

 

[marcus]

Or just get evisa voa ... Or multi entry 1 and 2 year business visa. So technically you never living here ... Once you get a resident visa then you are officially "living" here and resident tax liable ...

Wrong .

In this subject , staying more than 183 days in any 12 months period = staying here with a KITAS or KITAP (assuming you didn't mean staying 183 days in Indonesia and the rest in US) .

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

UU no.6 Year 2023
Article 111 (page 633) - free translation
(3) Domestic/Resident tax subjects are:
a. individuals (Indonesians or foreigners) who:
1. reside in Indonesia;
2. are in Indonesia for more than 183 days in a period of 12 months; or ...

 

[Banana72]

Thanks for the vote of confidence jstar!

So I'd agree with snpark about your visa....rather than jumping head first, really take a deep breath and try out the VOA first, if 30 days is not enough try the extendable up to 60 days total (and watch the need-to-leave the country deadline very closely ). Again--my knowledge of the visas and its development is limited and can be outdated.

Once you're here, I assume you have friends/family? Don't make big announcement yet to everybody you're a US citizen, coming 'home' etc etc just pick a few trusted ones to share what you need. Many Indonesians fall into more of the 'kepo' category and you'd spend lots of time answering questions than getting answers!

Second choice of visa...not sure if the sosbud visa (the 'family visit') is still available? if it is, you'll get more than 30-60 days in the country, but I used to know one or two expats who just did what snpark mentioned...voa...then every 60 days a quick 2 days visit/short vaca outside Indonesia, then fly back in apply another VOA. I hear the airport immigration (depending on your luck) kinda frown a bit at same day in-and-out of indonesia just to apply for another VOA. I would think after hanging out within Indonesia with 2-3 VOAs you'll get the idea what to do a bit better.. and I understand this from living in the US for half of my life (at that time) and being here for quite a few years, it is important for you to keep balance between our American mindset and how people do things here in Indonesia..