Mark

Well-Known Member
Apr 19, 2004
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Mark @ post #17
Thanks for your interesting take from Singapore...that is where the Indonesian Gov't is focussing all its rationale about repatriating the money that Indonesian Nationals park there....must be in the billions USD.

No-one can foretell the future but if Indonesia wishes to lure more long-term tourists and entrepreneurs, as they have indicated many times, they will have to provide an incentive...not a message of 'come here and we'll tax the crap out of you but give you no benefits from taxation.'

Something like the MM2H Visa where the Malaysians don't tax on offshore income might be a good example for Indonesia. To get an MM2H it is simply necessary to fix a deposit, liened to the Gov't, of either MYR300,000 or 150,000 depending on age. That can amount to considerable foreign exchange and guaranteed bank deposits to the Treasury Dept.

I agree. Indonesia's perspective of taxing worldwide income is quite aggressive compared to most countries (except the US). The country would be much better off improving tax collection inside Indonesia - if it could do so more efficiently there would be no need to try and chase the relatively small number of people who might having some earnings outside the country.
 

davita

Well-Known Member
Mar 13, 2012
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I agree. Indonesia's perspective of taxing worldwide income is quite aggressive compared to most countries (except the US). The country would be much better off improving tax collection inside Indonesia - if it could do so more efficiently there would be no need to try and chase the relatively small number of people who might having some earnings outside the country.

Totally agree and why I suggested, considering the potential of lucrative income from the tax amnesty scheme, that the WNA small-fry income will be ignored.