Govt increases airport exit tax fee to Rp 2.5m

JohnnyCool said:
With all due respect, I'd like comment briefly on the following posts:

Jimbo
The Tax laws in Indonesia have been in existence for some time but rarely enforced. There is a tax even on sosial Budaya holders if they exceed 183 days per year although I doubt if it has been enforced.
If some-one is on a Sosial Budaya, they're not allowed to work for money. So how can they be taxed?

Freogirl
[quote:31tyl8zj]Mats, I wonder what will happen to those on a soc. bud. who leave after 180 days but get another in Singapore and come straight back. They will live in Indonesia more than 183 days within 12 months (or do they mean consequtive days??)
Six months means 180 days, according to Indonesian bureaucracy. Stay over that and you have to pay fines. This "regulation" has existed for many years already. Years of staying in Indonesia "sos-budding", the letter of this condition was never applied to me. Maybe it's going to change.
:!:[/quote:31tyl8zj]

Not sure what your point is - I was commenting on the new tax rule that if you stay more than 183 days in 12 months you may have to pay fiskal on exit. Many of us on here have lived (or are living) on a 211 in Indonesia, so understand the 180 days, but that was not what I was talking about. What "regulation" are you refering to? Overstaying a visa? or paying fiskal on exit when living in Indonesia on a 211 (soc. bud.) visa?

What Mats & I were speculating on was that if you stay 180 days, do a visa run and get another 211 and extend that out to 180 days, on the following exit maybe we will have to pay fiskal. Seems a bit strange to pay fiscal on a 211 as it implies residency. It then follows that if they charge you fiskal you should be able to register for tax. And so on.
As you say, nothing is clear. And is unlikely to be for some time.
 
As for the comment "nothing is clear". Everything is clear......authorities are seeking new ways to fill coffers. There will of course be the shock and dismay that they are doing this, but really, anyone thats been here for any length of time knows that enacting regulations like this is the norm here. Its a pay raise for the immigration authorities who will have another way to supplement their income through the back door.
Im on a 212 but due to my new work roster will now spend more than the 180 days per year in the country, so im expecting every time i leave ill be up for the 2.5jt. Being that i work 4 weeks on/6 weeks off, it'll add up to 12.5jt a year. My company will cover this cost, so no skin off my nose, but the company i work for is a lot friendlier with expenses than most.
The authorities are doing a great job of scaring people in oil/gas/mining (generally people who spend a bit of $$$ here in Indo) away from permanently residing here.
Im wondering when the start and end of the fiscal year is in Indo, i.e when they calculate your 180 out of 365 days in the country.........anyone?
 
matsaleh said:
According to the CIA's World Factbook site, Fiscal Year = Calendar Year

Not so in Australia. The tax years runs June 30 - June 30.

Im wondering for those who use 2 passports whether theres a way around all this.......i guess that depends on how accurate the entry/exit computer records the immigtation dept has logs all this.
 
hinakos said:
matsaleh said:
According to the CIA's World Factbook site, Fiscal Year = Calendar Year
Not so in Australia. The tax years runs June 30 - June 30.
Sorry hinakos, I should have been more precise.

According to the CIA's World Factbook site, Indonesian Fiscal Year = Calendar Year and yes, I'm aware that the financial year in Australia runs from July to June. :wink:
 
Maybe for a sosbud visa they will start looking more closely at passports and not accept things so easily. We shall soon find out the hard way I am sure. If people misuse the sosbud for a permenent stay visa they should be aware that it can backlash as all good things come to and end. On the other hand $250-300 dollars (Fiskal) is not a lot of money to get over the problem nes't pas.
 
Jimbo, what does it mean: MISUSE of sosbud? I stay here in Bali since 3 years with my Indonesian wife with social visa. Every 6 month I leave the country to get a new visa. Either I go to KL, stay there for a couple of days or I go back to Germany, staying there for 1 or 2 month and come back with a social visa again. So, this is legal and nothing to do with “misuse”. The reason why I didn’t ask for a retirement visa was 1.) The fiscal and 2.) Why must I ask for permission every time I wanna leave this country? (AND additional payment for this permission). So I preferred to stay here with social visa, come to Immigration every month, paying fee as well every time. But why have I to pay fiscal now? I don’t get any salary here, cannot even get a tax number. Also my wife cannot get a tax number because she is jobless. Indeed we spent a lot of money every month for living here which includes a lot of tax already :)
Now they want to milk me again :-(. That’s make me upset – and not only me.
BTW Jimbo, 2, 5 Juta is a lot of money for me.
The only bright spot: Its only until 2010 (HOPEFULLY).
Werner
 
Wepro

A Sosbud visa is not a permenent stay visa nor was it ever intended to bu used as such even if you went out of the country every six months. Some people used only to go out for a day or two. Many expats have mis used this in this way because it was easier than getting a KITAS.

As for your other points on not paying the fiscal (previously only a 100$) that is your choice.Get a Kitas!! As someone who has lived and worked in many countries MOST if not all require a exit/entry visa so I do not understand your beef on that issue. You obey other laws without complaining just do so with this.

I do not believe you need a job to get a tax number but you may know more than me. Good Luck anyhow
 
Excuse me Jimbo, but as i previously stated, if you are earning money in Indonesia then it is normal to be paying tax. But a government cannot double tax an individual. This would be criminal and i think not long before some riot begins.

You are either earning money in Indonesia and paying appropriate tax on it, or you are not.
If your money is earnt in another country, it is that country which would be after its tax, other than this, i imagine people will be moving out of Indonesia.

day light robbery isnt going to work too well.

To hold a tax file number in any particular country a person has to be a citizen or have a registered business.

please correct me if i am wrong.
 
wepro said:
Jimbo, what does it mean: MISUSE of sosbud? I stay here in Bali since 3 years with my Indonesian wife with social visa. Every 6 month I leave the country to get a new visa. Either I go to KL, stay there for a couple of days or I go back to Germany, staying there for 1 or 2 month and come back with a social visa again. So, this is legal and nothing to do with “misuse”. The reason why I didn’t ask for a retirement visa was 1.) The fiscal and 2.) Why must I ask for permission every time I wanna leave this country? (AND additional payment for this permission). So I preferred to stay here with social visa, come to Immigration every month, paying fee as well every time. But why have I to pay fiscal now? I don’t get any salary here, cannot even get a tax number. Also my wife cannot get a tax number because she is jobless. Indeed we spent a lot of money every month for living here which includes a lot of tax already :)
Now they want to milk me again :-(. That’s make me upset – and not only me.
BTW Jimbo, 2, 5 Juta is a lot of money for me.
The only bright spot: Its only until 2010 (HOPEFULLY).
Werner

Hi Werner. I understand your point. To fully understand the thing, you have to understand that this tax is a sort of "deposit" paid. One collects the receipt of payment and one has to deduct it from the final amount of taxes to be paid. I am sorry if my english is far from being correct but what I try to explain is that if one works in Indonesia and has to pay say IDR 10.000.000 in income taxes, and went abroad 2 times paying each time IDR 2.500.000, then he will have to pay "only" IDR 5.000.000 to the government if he saved his receipt. Now, it means that if you do not earn any income in Indonesia, but still paid the IDR 2.500.000 while exiting Indonesia, you are entitled to claim it back... However, if one choose to do that, then one should be aware that it will attract a though control from the tax officers :(
Please note: I do not try to legitimate this tax, just try to explain it.

I also would like to add that since 2001 sosbud holders staying on a yearly basis (or almost) should have been paying fiskal (exemption of the fiskal was granted by law for foreigners staying in Indonesia less than 183 days within the last 12 months period) whatever visa type the foreign has/had. This law has never been enforced to sosbud holders but if one read carefully the law, one would quickly understand it.
 
It's worth being aware that the tax folks at the airport are also wanting to see a wedding certificate to allow a wife or husband of someone on a KITAS to claim exemption on presentation of their NPWP card. Your blue book is not enough.
 
KaBIm

I'm sure that many of us here appreciate your attempts at demystifying various aspects of Indonesian law and I thank you for that.

The trouble for me is that I'm still as confused as ever about many points. Indonesia's laws, how they are enforced (or not), or when (and how), and publicised in a manner that is understandable (and transparent) to those affected by them, remain mysterious.

For example, you say that:
To fully understand the thing, you have to understand that this tax is a sort of "deposit" paid...One collects the receipt of payment and one has to deduct it from the final amount of taxes to be paid.
That's all great, in theory, but what is or will be the reality? Who really knows and if anybody does, why don't they tell us plainly?
Please note: I do not try to legitimate this tax, just try to explain it.
I understand and appreciate that. However, I wonder where all the receipts and tax returns for people like the deceased Suharto and his surviving family members and cohorts are? How come they seem to get away with nearly everything and Indonesian law-enforcers trying for accountability and redress get shafted on a regular basis?

:shock:
 
JohnnyCool said:
KaBImThe trouble for me is that I'm still as confused as ever about many points. Indonesia's laws, how they are enforced (or not), or when (and how), and publicised in a manner that is understandable (and transparent) to those affected by them, remain mysterious.

I understand your point and agree with you to a certain extend. IMHO, Indonesian law system makes sense even if sometimes it is a bit of an headache to have a whole picture and that you need to research an amazing number of text to get a complete idea of what can be or can not be done. Most of the times, the people that are supposed to know the law are not even aware of the various amendments that go with it !
However, to be fair, I think that in past 5 years Indonesian administration has done a huge effort to tackle the problem of the inability to find the law and you would be amazed to find out that many ministries have published online most of the laws that regulate their sector (though, amazingly many laws concerning directly the Departemen Hukum dan Ham itself still remain difficult to find :lol: )
About enforcement, I agree that it requires a great deal of patience and efforts to get it enforced the way it should, but I also have to say to be honest, that I personaly can not complain too much. I went through an amazing number of administrative stuff in Indonesia and almost never failed to get my rights respected. I would not deny that sometimes it was to the price of a lot of stress and headaches... but ultimately it worked. However, I have a rather good knowledge of the law, various experience in "corrupted field/countries" and fair commands of bahasa indonesia. I believe that if you don't have all of it, Indonesian administrative system is discouraging and troubling as you said.

JohnnyCool said:
That's all great, in theory, but what is or will be the reality? Who really knows and if anybody does, why don't they tell us plainly?

The reality is that most of the guys in the various tax offices of the country still ignore most of the procedure. The law still need to be completed and I guess that in the next few months (at least after the Pemilu 2009) a "Peraturan Menteri" and later on one or several "juklak" will come to further explain them the procedures. Untill then it would be a constant mess and a lot of conflicting informations...
You would be amazed to find out how some pejabat, even at a high ranking, are sometimes ignorant of laws regulating what is their everyday job. I do not count anymore the number of case (I could spontaneously write here a dozen of unbelievable stories) where I had to very politely point out the amendment that prevail over a particular law that they were supposed to enforce. This is one of numerous challenge of Indonesia: training reliable and knowledgeable civil servants who go for the job by vocation rather than because they paid the "entrance fee".
Unfortunately, I have a rather poor knowledge of the fiskal law itself, but it should soon change since I plan to do a research on it. Living in Indonesia and doing business here, I for sure want to know more about it and the potential consequence of any change in the law.

JohnnyCool said:
I wonder where all the receipts and tax returns for people like the deceased Suharto and his surviving family members and cohorts are? How come they seem to get away with nearly everything and Indonesian law-enforcers trying for accountability and redress get shafted on a regular basis?

I firmly believe in the KPK. This was a very good move and results so far are encouraging. A proof of it is to be found in the attempts by some to reduce their power of investigation. Of course, one may think that things don't go fast but to be honest, when you see the work that has to be done, one should be surprised by the results. No big cats such as Suharto crownies went down for long, but countless DPR, governors, businessmen, former ambassadors, etc are under investigation and will get jail terms.
 
Thank you, KaBIm for taking the time and effort to reply to my comments and questions. I hope that others here find your own responses informative.

My main concerns, having lived in Indonesia for a very long time under various kinds of visas, are still not answered. That they haven't been, to date, makes me feel somewhat nervous living here. I am sure I'm not alone in this.
You would be amazed to find out how some pejabat, even at a high ranking, are sometimes ignorant of laws regulating what is their everyday job.
Not really. I'm used to it. (For those who don't know, pejabat means an official.)
(I could spontaneously write here a dozen of unbelievable stories) where I had to very politely point out the amendment that prevail over a particular law that they were supposed to enforce. This is one of numerous challenge of Indonesia: training reliable and knowledgeable civil servants who go for the job by vocation rather than because they paid the "entrance fee".
Again, doesn't surprise me in the least. Even if I read about the "unbelievable stories", I'd believe them.
I firmly believe in the KPK. This was a very good move and results so far are encouraging. A proof of it is to be found in the attempts by some to reduce their power of investigation. Of course, one may think that things don't go fast but to be honest, when you see the work that has to be done, one should be surprised by the results. No big cats such as Suharto crownies went down for long, but countless DPR, governors, businessmen, former ambassadors, etc are under investigation and will get jail terms.
I try to believe in the KPK, along with many Indonesians who want to see justice done, somewhere along the line, sooner or later. Some of those that get jail terms don't seem to serve them. Many examples abound, eg, Tommy didn't serve anywhere near the time he was supposed to, the generals and "militia" overseeing the East Timor tragedy went to court and everybody got off...too many examples exist.

It's kind of heartbreaking to realise that so much confusion and ignorance are rampant in this country. Then again, this is a fairly new country, still trying to come to grips with the aftermath of brutal dictatorships and novel notions of democracy.

The recent events in the Gaza Strip and the impotency of the United Nations Security Council's "responses" do not bode well for our future. I sure as hell hope I'm wrong.

:shock:
 
Hi all,

I'm new to these forums but do have a little experience in this matter, having been so shocked by the original fiskal increase announcement that I nearly fled the country! However after a few deep breaths, a couple of Bintangs and a bit of research, I have no great issue with the increase and think such initiatives are just what this country needs on its road to greater development. The fact that so few people pay tax in this country is a crime in itself, and fixing that can only help fix the country as a whole.

I've been investigating the rules for my particular circumstance, that being a European expat on an 'ikut istri' KITAS, which means I can't work but would be liable to pay fiskal unless I get an NPWP. This is what I've discovered so far, from the tax department and consultants...

i) Anyone in Indonesia can get an NPWP, and it does not depend on whether you have a job or not. I am currently applying for one, and my wife, who does not work, has already got hers. You need one for various tax issues / payments including paying the tax on a property purchase, hence anyone can sign up before they start paying any kind of tax (or not...)

ii) Tax is evaluated on worldwide income (and not just from salary income), but this is no different from many countries around the world. Investment, rental, interest and pension income, the works. As has been mentioned though some income may be covered by tax treaties, and would not therefore be taxed twice.

iii) Having an NPWP does not equate to having to pay tax, it just means you're registered and will file a tax return. Those like my wife (and me!) who do not work and effectively have no income would pay no tax despite having an NPWP.

iv) In theory, those on Social Visit visas and Business Visas are liable for fiskal and other taxes if they reside in Indonesia for 183 days in a 12 month period, and I'm told this is any 12 month period, not the fiscal or calendar year. Again, this is no different from many other countries, including some European ones. Whether this is / will be enforced is a different matter, of course, with KITAS holders likely to be the target of increased enforcement.

v) A friend who has a KITAS and NPWP was able to take his wife through the airport without paying fiskal by showing their marriage certificate. I'm not sure if the same applies to a husband who's wife has an NPWP but I would be keen to find out... Anyone?

The problem here has been the shock of the rapid increase in fiskal, but at least this country seems to be making an effort to get some of its institutions on track. And such reforms are going to be painful for a while, until people get used to it and fall in line. One point that has been missed is that hopefully fiskal is to be eliminated entirely in 2011, once Indonesia has found itself a few more tax payers. So we've got (hopefully) two years of transition which is never going to be straightforward. Of course there are also problems with interpretation of the rules... It seems these changes are being thrown on local tax offices with minimal training for the staff there, hence the conflicting answers to our queries. Maybe mine included. :shock:
 
Thanks very much Kerobokstar, I am thinking about this and may follow your lead. The more I hear about how others are going, the more confident I will become. So any updates you send will be greatly appreciated.

I would be depending on the tax agreement between Indonesia and Australia and the fact that I declare all my income in Australia to hopefully find that I had no tax liability in Indonesia.
 
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