Bali Expat Forum - Bali Travel Forum

Not sure if this has been posted already, just noticed it on Jakarta Post.

http://www.thejakartapost.com/news/2008/12/24/govt-increases-airport-exit-tax-fee-rp-25m.html

By the way..... I think I'm going to transfer some IDR for Dollars....

Residents who do not have tax identity cards (NPWP) will now have to pay Rp 2.5 million (US$2083)

Nice exchange rate


If the tickets aren't already expensive enough... the government does this. Sick

Strange.
What about those foreign they are here on a social visa or on a retirement visa?
For the 2 visa the government doesn’t issue tax numbers

From Jakarta Post

The Tax Office will exempt citizens under 21 years of age, foreign nationals who have lived in Indonesia less than 183 days within 12 months, diplomatic officials and staff of international organizations

I think for the retirement visa should be ok (no tax number will apply) since you have to ask for an EOP (exit only permit) and you have to pay to get it, or Exit and re-entry permit to be able to exit/entry the country (and again you pay for it)

For the Social Visa I’m not too sure.

If the tickets aren't already expensive enough... the government does this. Sick

You are not the only one


L.

Nakal wrote:Not sure if this has been posted already, just noticed it on Jakarta Post.

http://www.thejakartapost.com/news/2008/12/24/govt-increases-airport-exit-tax-fee-rp-25m.html

So this raises the question for Kitas holders - what are the pros and cons of getting one of these tax identity cards. I think I have seen that you then have to report regularly. Anyone got more info?

lumumba wrote:From Jakarta Post

The Tax Office will exempt citizens under 21 years of age, foreign nationals who have lived in Indonesia less than 183 days within 12 months, diplomatic officials and staff of international organizations

For the Social Visa I’m not too sure.

Sosial Budaya is valid for a maximum 180 days only. After that time the visa holder must leave the country, so Fiskal or Exit Tax Fee should not be applicable.

So what exactly constitutes a resident?
I certainly wouldnt be looking for a taxation number........who wants to be living in a country where your foreign wage is taxed, but you have no govt medical cover, terrible roads, a justice system that doesnt work and an education system that only works if you have the $$ to pay for it?? It used to be it didnt matter, as the money you saved on tax you could put towards these things.
Things are getting tighter in Indonesia, soon i hear all bank deposits over 10,000$ per transaction will require a tax number from the sending location.
Not good for people who get wages paid into Indonesian banks...
Are they trying to drive people and $$ out of Indonesia? Quick cash is whats its about, plain and simple, nothing new.....is anyone really suprised?

hinakos wrote:So what exactly constitutes a resident?

Someone with a Kitas.

A Kitas is also required when opening a Indonesian bank account. (in 99% of the cases)

I kinda got lucky, i managad to open a $$/Rp account before the rules came in. But with the new rules about the tax number required for 10k transactions, it wont matter, a lot of people will be back on the radar. Getting away from the original thread i know, but its another unwanted move from the central govt (just like the exit tax) which will ultimately do little for the country except generate short term cash.

The exit tax is not primarily aimed at expats but is to ensure that Indonesian citizens pay income tax. I cannot see what is wrong with that.

If you work there as an expat you should pay tax as it is the law of the country. I pay tax in Kazakhstan and in the UK on the income I earn ( although I am not double taxed on the same money)

If you are on a retirement visa the rules say that you must have a minimum income and pay tax on it although I am sure double taxation laws will also apply.

Jimbo wrote:
If you are on a retirement visa the rules say that you must have a minimum income and pay tax on it although I am sure double taxation laws will also apply.

Jimbo, was that a type error? do you mean to say that one is taxed on the same income by both countries (Indo and the country where your money is earnt)?

This wouldnt make sense. On a retirement visa, one must pay their own medical insurance, employ at least one person in Bali, one must bring in so much money per month and one must have to buy or rent a home here (not below a certain value), and you are saying that you must pay tax in Indo on your (already taxed) income from another country also ? (double tax).

If you are on a retired visa in Bali, you cannot work, if you cannot work, you cannot earn money, if you dont earn money in Indo, how can one be paying tax ?

I had investigated a retirement visa several years ago, and as far as I can remember, the Indonesian Government does not levy a tax on retirement income, which the retiree is reporting.

I believe you pay tax on money you bring into the country which is then treated as income by the Indonesian government. I have all the rules somewhere and will try and dig out the appropiate section.

The exit tax is not primarily aimed at expats but is to ensure that Indonesian citizens pay income tax. I cannot see what is wrong with that.

The average income in Indonesia is about Rp630.000 a month. How does charging someone 2.5 juta to leave to go anywhere become right and fair?

It just ingrains the have and have not stratas in this twisted society. It is fundamentally wrong on so many levels.

SG

The average person earning 630,000 per month is not the one who fly's abroad. Secondly the tax is only aimed at those that do not want to declare themselves for tax and obtain a tax number which makes them immune fron the 2.5 Juta. All can do that but many rich people do not want to pay the income tax so they will pay the exit tax. All rich or poor have the choice which way to do it.

Sorry mate but you are confused on this. Almost all countries in the worl need to levy taxes to run the country and Indonesia is no exemption. Not much point complaining about the state of the roads etc if you are not prepared to pay for them.

Looks like I was wrong on the taxes for retirement visa

"Let’s discuss the issue of Indonesian personal income tax, taxed at the rate of 35% for incomes over Rp 200 million/year ($20,000). I went over this several times with the agency, figuring they should have all the correct information regarding this matter. They keep telling me and others that the Indonesian Government does not levy a tax on retirement income (which the retiree is reporting) for retirees living in Indonesia. I haven’t inquired any further in this matter and the agency says not to give it a second thought."

The average person earning 630,000 per month is not the one who fly's abroad. Secondly the tax is only aimed at those that do not want to declare themselves for tax and obtain a tax number which makes them immune fron the 2.5 Juta. All can do that but many rich people do not want to pay the income tax so they will pay the exit tax. All rich or poor have the choice which way to do it

There are a few things wrong with that argument.
1. the people who are not registered for tax tend to be the very rich and the poor (the 200m who exist below the taxable threshold). The rich don't care whether its 1m or 2,5m.
2. those already registered are the salaried middle class in urban areas
3.Thus it effects the lower income workers more.
4. The fall in airfares has made it vastly more affordable for low income workers to travel. You can get to Kl for Rp200.000 on Air Asia. The new Fiskal level pushes that back into the realm of unattainable again and punishes those who were now seeing travel at least vaguely affordable and really does nothing to affect those for whom travel has always been affordable.
5. It therefore plays a part in keeping the masses uninformed and largely controllable
6. I agree that taxes need to be raised to pay for services but you are making a pretty broad assumption if you think that will be the case. Hundreds of millions of dollars have been raised here in recent years with the tourism boom. What has been spent on services and infrastructure...about $0. The argument doesn't hold.
7. ASEAN sees this as a human rights issue and I agree.