Individual Income Tax for Foreigner in Indonesia

Individual Income Tax for Foreigner in Indonesia

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According to Indonesian Tax Law, foreigner/expatriate in Indonesia can be included as subject to individual income tax. Answer following questions to see whether you are subject to individual income tax in Indonesia or not.

Do you earn income from/in Indonesia?

If No, you don’t have to pay individual income tax

If Yes, see below

Are you working for your Embassy/Consulate/Approved nonprofit international organization by Minister of Finance as a non-tax payer in Indonesia?

If Yes, you don’t have to pay individual income tax as long as you don’t earn any other income in Indonesia

If No, see below

Are you living for more than 183 days (accumulation) within 12 months (it doesn’t mean from Jan-Dec) or having intention to live in Indonesia?

If No, you are subject to individual income tax for foreigner with special tax rate for foreigner:

If Yes, you are subject to individual income tax with general tax rate just like any other Indonesian resident.

What should we do next?

1. Go to tax office (or Kantor Pelayanan Pajak/KPP in Bahasa Indonesia) to register personal tax number (or Nomor Pendaftaran Wajib Pajak or NPWP in Bahasa Indonesia). If you live in Jakarta, go to Tax Office for Foreign Bodies and Expatriates (KPP Badan dan Orang Asing) at Jalan Taman Makam Pahlawan Kalibata, Jakarta Selatan

2. Bring following documents for registration requirement:

  • registration form
  • photocopies of all information on your passport
  • photocopy of working permit
  • certificate of domicile for you (KITAS) and your employer
  • photocopy of your employer’s NPWP
  • Letter of Authorization, authorizing your representative to register and handle your tax matters.

3. Taxes from regular monthly salary are due and payable no later that the 15th day of the following month (save the proof of payment).

– No need to report every month if there any state receipt number (or Nomor Transaksi Penerimaan Negara/NTPN in Bahasa Indonesia) validation on your proof of payment (or Surat Setoran Pajak/SSP in Bahasa Indonesia)

4. Every year, you should report annual tax report no later than March 31 of the following year.

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