Help With General Moving to Bali

tmitch87

Hi all, First time post... I hope some of my questions may be answered... I have recently taken a Construction Management Job with a 5* resort group. As I am young and inexperience in moving overseas any help would be appreciated... My first question is regarding Tax - How do I declare my self a resident for tax purposes in Indonesia so I don't get hit with Australian taxes as well as the Indonesian. Second is it possible to open and what would be the best option to open a bank account in Indonesia. I will be getting paid in $US and will be getting paid into my $AU account momentarily... The problem with this is that I am subject to x2 exchange rates... Is there a good international or Indonesian bank? I think I have most other thing all sorted and am waiting on my Visa. Does anyone know how long a KITAS takes to process from the Sydney Embassy. all my docs have been there for 2 weeks and my start date is approaching. (Monday 21st Feb is the day for the move and I dont have any of my documentation). Kind Regards, Mitch

gilbert de jong

Hello tmitch, welcome to the forum... first of all congrats on getting a job on Bali :) so let me go straight to your questions..

tmitch87 wroteMy first question is regarding Tax - How do I declare my self a resident for tax purposes in Indonesia so I don't get hit with Australian taxes as well as the Indonesian.

You're employer provides you with a kitas + workpermit, on the workpermit is a NPWP (taxnumber) with this number you pay you're taxes according to your payslip.

tmitch87 wroteSecond is it possible to open and what would be the best option to open a bank account in Indonesia. I will be getting paid in $US and will be getting paid into my $AU account momentarily... The problem with this is that I am subject to x2 exchange rates... Is there a good international or Indonesian bank?

With your Kitas, you can open up a bankaccount at an Indonesian bank...you can even open up a USD-account to receive your wages on...you can also open up a IDR account and transfer from the USD into the IDR account, just conversioncosts to be paid.

tmitch87 wroteDoes anyone know how long a KITAS takes to process from the Sydney Embassy. all my docs have been there for 2 weeks and my start date is approaching. (Monday 21st Feb is the day for the move and I dont have any of my documentation).

I have no idea how long it takes at the Sydney embassy, my Kitas was however done in 3 days... If all paperwork and application for IMTA is done by your employer, the only thing the Embassy does is getting confirmation (telex) from Jakarta.. If I were you I would call the embassy or if it's close, just walk in and ask them if there is something wrong or if it is normal to process a Kitas this long... alright hope this helps, take care and goodluck for now. fr.gr. gilbert.

ronb

tmitch87 wrote My first question is regarding Tax - How do I declare my self a resident for tax purposes in Indonesia so I don't get hit with Australian taxes as well as the Indonesian.

Just looking at the tax issue. Australia and Indonesia have a bilateral agreement on income taxes so that double tax payment should not be a risk. My understanding is that you should declare your income to the country where it is earned, and you do not need to declare in the other country. So if you were working in Indonesia and had a rental property in Australia, you should declare your Indo wages income to the Indo tax dept, and your Aussie rental income to the Aussie tax department. The agreement provides for both tax departments to be able to access info from the other, but I guess they don't do this very much.