LinkBack URL
About LinkBacks
Indonesian tax law - pay twice
Hi, I have been researching Indonesian Tax law and found some info at pajak dot net (sorry the forum won't allow me to post links as a newbie.)
this bit was of particular interest:
"Indonesian resident taxpayers are subject to tax on worldwide income. Nonresidents are subject to tax on Indonesian-source income, only. Individuals are considered resident if they reside in Indonesia; if they are present in Indonesia for more than 183 days within a 12 month period"
Does this mean that, if I was to move to Indonesia and rent out my apartment at home, I would be required to pay tax on the rental income twice. Once to the Indo government and once to my home government?
no, you don't pay twice...legally speaking you would have to declare it at the indo tax office, but they won't make you pay any tax on income from abroad...
since you would pay tax on it abroad. Same goes for income made in Indo, you would have to declare it abroad but don't pay tax abroad.
don't read between the lines..i think the words are clear enough...:)
depends on if you pay tax in your home country?
you just fill out a tax form once a year if you are on a kitas visa & enter no income from Indonesia.
if you are on a sobud visa you must exit every 180 days.
As a technical matter yes, you would have to pay tax on this income twice, unless your home country has a tax treaty with Indonesia that covers avoidance of double taxation (in which case you would only pay tax to the country where the income is earned). As a practical matter, the Indonesian tax authorities will not know about your overseas rental income unless you declare it. They would, however, be within their rights to query the source of any funds you remit to yourself in Indonesia from abroad to determine whether it is generated by an 'income activity' like work or investments or is simply savings. Very unlikely to happen though.
Mark is correct.
It would depend on if your home country has a double tax agreement with Indonesia.
For example, Australia and Indonesia have a double tax agreement in place see the following link for more info: www dot ato dot gov dot au/businesses/content.aspx?doc=/content/59547.htm
Anyone know any info for USA citizens?
USA also has a tax treaty with Indonesia...
don't read between the lines..i think the words are clear enough...:)
Sweet, ok, thanks. I'll look it up. Feeling better then. No 'pay twice' for me :)
nah...any income you make here in Indonesia, you just pay incometax on that here.
and if there is any income abroad (USA) you still file your taxes in the US for that.
don't read between the lines..i think the words are clear enough...:)
Guess I have the basics covered, just have to get on and earn some $.. well Rupees
Posting Permissions
Reply With Quote