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income tax

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by , 30-08-2010 at 02:58 PM (1130 Views)
Hi

I recently read an article that stated "if you reside in bali for more than 2 months in any 12 month period, you are required to pay income tax in indonesia" does anyone know more about this??

Is bali still an expats fantasy or is it becoming more difficult???
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  1. Crystal's Avatar
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    Hmm, I don't know anything about this. It is possible but is usually cheap. I've lived in Batam for two years and am an American. The first year my dad sponsored me on a social visa, the second and this time me and my husband are on working visa's under my dad's school. I've heard of it but my father stated it was EXTREMELY cheap.
  2. JohnnyCool's Avatar
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    Yes and no.

    If you're in Indonesia for more than two months, it's likely you have a Social/Study/Business/Retirement or Work visa. If you're actually "working", you're [I]supposed[/I] to pay tax. Whom to and how much depends on the circumstances.

    Most Indonesian people in Indonesia do not pay taxes, even 'though they're supposed to. The government is well aware of this and is trying to change matters. However, endemic corruption and inefficiency makes this a difficult goal to achieve.

    Bali [B]is[/B] becoming "more difficult" for everybody (including the Balinese). Rocketing land prices have put many Balinese in a position where they can't afford to buy their own land, let alone build a house on it. The current population is about 3.9 millions and the general infrastructure still has a long way to go. An "ordinary" Balinese would be lucky to earn Rp 1 million/month. One [I]are[/I] (100 square meters) of land can cost Rp 50-150 million (or more), especially in Southern Bali or places like Ubud.

    Imagine earning Rp 1 million/month and trying to buy one [I]are[/I] of land. If you [B]didn't[/B] eat, buy petrol, pay off a motorbike/handphone etc, buy clothes, use electricity, use gas, have a wife and children, contribute to endless ceremonies and so on, it would take you years just to pay off the land.

    The suicide rate for Balinese is now the third highest in Indonesia. Obviously, it's not "paradise" for everyone.