Ah yes...yet another Indonesian way of saying "NO."there was a discussion about discussing it at a later date
Just curious, has she been in Indonesia for more than 183 days? If she hasn’t stayed for 6 months, then she’s not an Indonesian tax resident, which means she must still pay income tax to Uncle Sam.
Unless she can prove to the IRS that she’s an Indonesian resident, she still owes US income tax. Just staying for more than a year abroad doesn’t automatically qualify her for the status.In her first post, she wrote that she's been living in Bali for over a year. In another, her girlfriend wrote that they don't pay taxes because "we earn USD in the US not IDR in Bali" or something to that effect.
I'd say they are paying US taxes still - I didn't see any comments about them not paying any tax - just not Indo taxes.In her first post, she wrote that she's been living in Bali for over a year. In another, her girlfriend wrote that they don't pay taxes because "we earn USD in the US not IDR in Bali" or something to that effect.
Unless she can prove to the IRS that she’s an Indonesian resident, she still owes US income tax. Just staying for more than a year abroad doesn’t automatically qualify her for the status.
It looks like a double whammy to me. Indonesian authorities would like to know how she stays and works without the proper visa, and the IRS would be interested if she doesn’t state her income for taxation.
Indonesians just love the "Negro" look, hence the huge demand for skin blackening products!Yeah, but the word, probably brought here by Spanish speakers, does not have the same negative connotations here as it would in the English speaking world.
Indonesians just love the "Negro" look, hence the huge demand for skin blackening products!
I’m no expert on Indonesian tax, but it seems that any stay beyond 183 days subjects you to PPh 21.Yes, but it is up to her to establish one or the other. De facto she has been here for over a year, so she needs to file taxes (yeah, hahaha...her and 90% of Canggu). If she is subject to US income tax, then there are tax treaties to mitigate the issue of double taxation. But as countries tax different income differently and at different rates, there could still be taxes outstanding.
But for sure it's not as simple as "I earn USD in the US, so I don't have to pay taxes here".
I'm betting her e-book doesn't have a chapter on taxation, but I didn't check...
While that is part of the colonial legacy there has long been a belief throughout Asia that having dark skin shows you are a commoner and having to work in the sun. Having light to white skin shows you are from a higher class. It is a major feature of advertising throughout India when seeking a matrimonial partner that the respondents should have light skin. Even in Africa being blacker than other Africans can be a cause for derision.That Indonesians (and others with darker skin in the world) have been indoctrinated to think lighter skin is more desirable is unfortunately one of the lasting legacies of colonialism.
I’m no expert on Indonesian tax, but it seems that any stay beyond 183 days subjects you to PPh 21.
Out of curiosity I did a calculation based on a person earning USD 15,000 a year, which should cover a modest living cost in Bali. USA would tax the first $9,875 at 10% and the rest at 12%, for a total of $1,603. Indonesia would tax the first $3,564 at 5% and the rest at 15%, for a total of $1,894. Even if she’s paying the IRS, she still owes Ditjen Pajak $291 in this scenario. The proper way of doing it is by paying Indo gov’t, then file exemption to U.S. gov’t. However, doing this will open a can of worms because a digital nomad is unlikely to have a visa allowing them to earn income.
Indo government normally has no easy way to prove that somebody is earning foreign income, that is until you advertise it to the entire interwebs.
Many digital nomads rely on income from Youtube, IG, selling ebooks, and such. In other word, they need followers. To gain followers, they need interesting stuff to offer. Edgy material (like how to not pay income tax) attracts people alright, but it’s the wrong kind of attention.
You did not include the standard deduction both countries provide ($12.4k and 54jt), US FTC or FEIE, or US FICA taxes. Such a person would pay zero US income tax, but would pay about 15% in FICA taxes, and I can't think of any tax credits that would help them.I’m no expert on Indonesian tax, but it seems that any stay beyond 183 days subjects you to PPh 21.
Out of curiosity I did a calculation based on a person earning USD 15,000 a year, which should cover a modest living cost in Bali. USA would tax the first $9,875 at 10% and the rest at 12%, for a total of $1,603. Indonesia would tax the first $3,564 at 5% and the rest at 15%, for a total of $1,894. Even if she’s paying the IRS, she still owes Ditjen Pajak $291 in this scenario. The proper way of doing it is by paying Indo gov’t, then file exemption to U.S. gov’t. However, doing this will open a can of worms because a digital nomad is unlikely to have a visa allowing them to earn income.
Thanks. This is what I got for relying on Turbotax and just plugging the numbers in year after year.You did not include the standard deduction both countries provide ($12.4k and 54jt), US FTC or FEIE, or US FICA taxes. Such a person would pay zero US income tax, but would pay about 15% in FICA taxes, and I can't think of any tax credits that would help them.
Their total bill would likely be about $2000 to US and $1200 (18jt) to Indonesia.
Of course paying those taxes in Indonesia may be difficult, as you point out. I have heard stories of some WNA without work permit going to Kantor Pajak and being refused an NPWP. I had no problem getting NPWP while on a visit/tourist visa when I was still waiting for my work permit. My understanding is that it should always be possible, but some offices may refuse because they feel uncertain of the law, much like some SamSat outside major cities are not aware they can issue SIM to foreigners.
And Expatindo is getting retweeted left and right. I wonder if there is a traffic increase on the website and forum because of this.
I don't follow ANY twitter. If I was going to pay any attention at all, though, I am sure Expat Indo would be on my list.You...don't...follow...ExpatIndo...twitter???