An incentive to register to pay taxes?


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An incentive to register to pay taxes?

Postby FreoGirl on Mon Jun 30, 2008 9:21 am

Bali Discovery is reporting that the fiscal tax is set to be scrapped under some circumstances. http://www.balidiscovery.com/messages/m ... sp?Id=4602

"The new move designed to enhance bureaucratic efficiency and encourage Indonesian's to register and pay taxes, will only be available to the estimated 4.9 million individuals who have registered and obtained an official NPWP registration from their local tax office."

Those not registered would still have to pay - so I suppose all those living in Bali under a social visa, and the vast majority of Indonesian citizens who go overseas for work who also are not registered to pay tax.

Still, unless you were coming back and forth a fair bit, hardly an incentive to register to pay taxes..

But for those on a working visa, who already pay tax, good news...
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Re: An incentive to register to pay taxes?

Postby BaliLife on Mon Jun 30, 2008 9:44 am

Given that most indonesians don't pay taxes, but rather pay a 'get lost' fee to the taxman - I'm not sure how much of an incentive this might be.. But I guess it's a start..

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Re: An incentive to register to pay taxes?

Postby Jimbo on Mon Jun 30, 2008 10:10 am

so I suppose all those living in Bali under a social visa,


Not aware that you have to pay fiscal on a sosbud visa?
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Re: An incentive to register to pay taxes?

Postby SG on Mon Jun 30, 2008 10:14 am

My understanding is that this is going to go hand in hand with a bit of a clampdown on tax payment, especially, but not only, working expats.

There has most definitely been a company tightening in recent months, with at least two companies I know of having their offices raided without warning and all books and harddrives copied or taken, along with simultaneous raids on the owner's houses and the same happening.

I'm pretty sure there is a realization in JKT that the tax regime needs tightening.
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Re: An incentive to register to pay taxes?

Postby FreoGirl on Mon Jun 30, 2008 10:40 am

Jimbo wrote:
so I suppose all those living in Bali under a social visa,


Not aware that you have to pay fiscal on a sosbud visa?


What I said was:
"Those not registered would still have to pay - so I suppose all those living in Bali under a social visa, and the vast majority of Indonesian citizens who go overseas for work who also are not registered to pay tax."

To clarify, I'm saying those living in Bali on a social visa, who don't pay tax, still would have to pay fiscal. Also, people like my husband, an Indonesian citizen, would also have to pay fiscal as he is not registered to pay tax.
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Re: An incentive to register to pay taxes?

Postby ronb on Mon Jun 30, 2008 11:08 am

FreoGirl wrote:
Jimbo wrote:
so I suppose all those living in Bali under a social visa,


To clarify, I'm saying those living in Bali on a social visa, who don't pay tax, still would have to pay fiscal.


I think this is what Jimbo was pointing out. If you are here on a sosbud visa you are not required to pay fiskal when you leave, but if you are on a retirement visa and have a Kitas, then you do pay fiskal.
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Re: An incentive to register to pay taxes?

Postby FreoGirl on Mon Jun 30, 2008 11:21 am

ronb wrote:I think this is what Jimbo was pointing out. If you are here on a sosbud visa you are not required to pay fiskal when you leave, but if you are on a retirement visa and have a Kitas, then you do pay fiskal.


Yeah you're right, I was thinking kitas but saying social :oops: -

So to reclarify - if you are on a resident kitas, (not a working visa) then the change doesn't help much.
Shouldn't be trying to read forums and work at the same time.. :mrgreen:
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Re: An incentive to register to pay taxes?

Postby Roy on Mon Jun 30, 2008 12:30 pm

This new scheme has already been in place for several months from departure points in various areas of Java, especially at ferry terminals which service Singapore. There is something common sensible about that, the idea being that if you can afford to head off to Singapore for a day or two of shopping, you should also be paying your taxes and have a tax registration certificate.

As a member of ASEAN, Indonesia is under great pressure to eliminate the fiskal tax levied on all Indonesian citizens departing Indonesia, as other ASEAN member countries do not penalize their citizens for similar departures from their country to Indonesia.

The next step will be a complete elimination of the fiskal tax, or at least, an elimination of it when traveling to another ASEAN member country.
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Re: An incentive to register to pay taxes?

Postby colorful on Tue Aug 05, 2008 6:22 pm

I thought you're not allowed to legally work with a social visa anyway...
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