Thread: Business Expenses

Hi

i will shortly have my business opened in Bali.

I will still be based in Australia and will be possibly travelling back to Bali once a month or so to keep an eye on things.

What i would like to know is when i pay for my flights and accomodation through my Bali business, can this be tax deductable through the business?

Any answers?

Originally Posted by gary_leighton

Hi

i will shortly have my business opened in Bali.

I will still be based in Australia and will be possibly travelling back to Bali once a month or so to keep an eye on things.

What i would like to know is when i pay for my flights and accomodation through my Bali business, can this be tax deductable through the business?

Any answers?

If you need to travel to see your business. Yes, flights, hotels, meals....

Originally Posted by gilbert de jong

through the business on Bali?

Hi Gilbert

yes through my business in Bali.If i pay for my filighrs and accomodation out if my Bali account can i use it as a deduction?

Thanks

Gary you can deduct anything you like, but you have just told the Indonesian tax man you have lots of money, so you can pay more tax I'm sorry Gary but you are in for a big shock.
Gilbert he can only have a PT or PMA company.

If he is on a business visa he would be employed in a company outside of Indonesia & would pay tax in that country. Now if he was working in Indonesia he would have to have a working Kitas(PT/PMA company). Gary said he is starting a business in Bali, the smart thing would be that he is a Director in the company & would not have a working visa. Now if his company is giving him a working visa & he is claiming his travel between Australia & Indonesia to the Indonesia tax man I'm shocked, but if he was claiming to the Australian tax man it would make more sense. You also have to remember that income from Australia & Indonesia must be declared to both tax men, there is a tax agreement between both countries. I think I will stay unemployed, toooooo many tax men for me.
Has anybody on this forum received a tax return from the Indonesian government????????????

Originally Posted by Fred2

............You also have to remember that income from Australia & Indonesia must be declared to both tax men, there is a tax agreement between both countries..............

I am no expert, but my understanding of that agreement between Aust and Indo is that you don't declare the same income to both, you declare income to the the government where the income was earned. The agreement does provide both tax departments with the right to access your tax records in the other country - but I guess they do not do that very often.