Mark wroteI suspect the real reason immigration are interested is the illegal working aspect of running a rental business without a work permit. There are no doubt loads of expats, even those with the villa license and tax matters in order who are operating such a rental business on a sosbud or even a retirement kitas... Not a good idea. Those on a spouse kitas or kitap can rest easy if the villa documentation is in order. Those who have no correct documentation at all should be prepared for a very unpleasant experience if they are nicked.
I agree completely that holding all the correct licenses, reporting, paying taxes and complying with Indonesian law is what any foreigner that is running a villa on a commercial basis should be doing. The dilemma I have is how to do this?
I am unable to obtain a Wisata license in my own name which means I need to rely on my Indonesian nominee to hold the license. After many years of requests, my nominee has finally agreed to apply for the license which is a huge relief to me, but has now raised the concern of how to practically report and pay the 10% gov't tax which I will need to charge on food/drinks and accommodation (if my understanding of this is correct of course .. if anyone knows of a publication that clearly states the tax rules for a P.Wisata please let me know).
If anyone with experience in reporting tax via a nominee license holder can comment and give advice I would be very grateful. My best guess is that I will need to calculate tax payable for the month, give my nominee this information, rely on him to include this in his own reporting (he has a number of Pondok Wisatas himself), hand over the cash to my nominee and he will pay it to the tax office in Amlapura using his own NPWP. If I am right, how will I know if my tax has really been paid, and if it has been paid ... has it been paid against my P.Wisata or just put into the general pool of my nominees tax affairs. If each separate P.Wisata he holds had a separate NPWP I would feel a little reassured but I do not know if this is the case.
So, I wonder how many other foreigners are in a similar position to me, where there is a desire to comply with Indonesian tax law but are unable to see a realistic and practical way to actually do this.
