Are retirement kitas holders living in Indonesia more than 183 days who receive income from capital (cash in bank, shares) held outside Indonesia taxed by Indonesia?.
According Indonesian Tax Law....YES!
According to practice...I may be on a limb here...but I've never heard of anyone who does it nor anyone who has been inquired about by authority....including myself.
I asked my agent about getting an NWPW (Tax ID), and he had the principle "Don't ask...don't tell" I felt I was talking to a previous USA President called Bill.
Perhaps a better question would be 'does anyone on a retirement kitas actually declare and pay tax'? Kitas is a residency permit and presumes tax residency. Some people on this board have reported filing annual tax returns, but showing no income. It's going to be pretty hard for the Indonesian authorities to prove otherwise in respect of overseas investments, although they could always question the source of funds that one uses to live on in Indonesia. And, it would not surprise me at all if in the not so distant future they start making assessments of tax based on lifestyle (ie lease/ownership of a fancy villa, ownership of cars and motorbikes, etc.) and movements of money into the country. Interestingly, up to about 2001 Singapore used to tax the import of funds into the country. Given the precarious state of Indonesia's finances, you can count on some strengthening of tax enforcement and collection in the future.
The actual process in Canada is quite simple as well, but it sounds to me the criteria is stricter. To Canada if a citizen is terminating their residency that means they are leaving, moving somewhere else and therefore should take everything with them (including all assets, all belongings, all dependant family members, etc..). In Canada's eyes if one were to be moving somewhere else and becoming a resident of another country then with that new residency would come new bank accounts, new identification & driver's license, new mailing address, etc.. no need to keep these things in Canada if you are no longer living there, and if you do, the government would question what you are really doing, what your intentions are and if you have really left or just dodging the taxes some how. Perhaps too Canada might be stricter with it's non-residency criteria because it borders USA and all citizens of both countries can freely pass the border without visas and in some cases even without passports, which opens opportunity to illegally overstay, take jobs and make money under the table, dodge taxes, and take advantage of some of the socialized benefits Canada offer's it's tax-paying residents.
Thanks when I eventually get to Bali I will tread quietly. Along similar lines during a recent conversation with a centrelink lady I commented on the fluctuating stock markets. She confirmed reviews were still made each March and September and added to advise them if share values dropped and they would do an interim reassessment. I said at the moment stocks were quite high (mid May). She interrupted and said ' Don't tell me about that. You are not legally obliged to give us that information. I thanked her for the advice and finished our conversation. In this case don't tell they won't ask.
Also I think if you have a valid medicare card (i.e. not expired) it can be used again on your return to oz.
Also I think if you have a valid medicare card (i.e. not expired) it can be used again on your return to oz.
Oh, the years of living dangerously...
Is it just me or does it affect anyone else this way?
I read almost daily posts on this board about how difficult it is to live in Bali and how precariously we all do it. Reading this thread you get a good view of all the wonderful things we've all left behind -- WILLINGLY!
Is Bali that wonderful? Is where we came from so awful?
Are we all fucking mad?
Is it just me or does it affect anyone else this way?
I read almost daily posts on this board about how difficult it is to live in Bali and how precariously we all do it. Reading this thread you get a good view of all the wonderful things we've all left behind -- WILLINGLY!
Is Bali that wonderful? Is where we came from so awful?
Are we all fucking mad?
Hi soul surfer - have you any idea where you might want to stay/settle in Bali? In terms of schooling, the Green School, closer to Ubud than the beaches of Kuta/Canggu etc, is gaining quite a good reputation (website available, just can't add it here it seems). I don't know parents who have sent their children there, but will learn more when I am back in Bali from next week. They are also setting up educational camps in Australia. There are increasing numbers of families heading to Bali for long stints, or to live there, I'm sure your wife will be able to build a life there. It sounds a no brainer, financially, which is all good for the children's future I'd say.
Looking at Canggu or sanur totally dependent on Schools, availability and our preference. Been up to Ubud on holidays but noway could i live away from the surf. Always lived near the ocean, currently a 5 min walk and the furthest in 22 years has been a 10 min drive.
After being a non resident FTP for many years now - we recently came back from Bali to Oz temporarily to give birth. Being that we were still non residents FTP - we were not allowed to use the medicare system at all. We didnt take the hospitals word for it - we went and saw medicare direct - and they told us that being non residents FTP - there was no way they would issue us with a Medicare card (non even a temporary one). We went private the whole way.
Youd be risking having to pay tax on your whole years income to use your medicare card while non resident FTP - if it was even possible at all.
As far as "handing the card in" - that doesnt matter at all - its not necessary - you just dont use it.
Likewise with Oz super......you can no longer contribute to Oz super if your non resident FTP.
I have about 5 different super accounts...all with different providers, it a mess - i havent contributed to any of them in a long time - but i just wanted to roll them all into one - and was told in no uncertain terms by my accountant to not even go near them until i was back as a resident for tax purposes...not even to roll them into each other. In her words - for me to be seen contributing or operating any of my super funds in oz in any way could negate my status as non resident and open me up to the entire years tax burden.
So make sure all your super is straightened out before tickng the box on your tax return that say Non resident FTP (and thats basically all it amounts to officially to become a non resident FTP....just ticking the box on your tax return amd following the basic rules). By the way i still do a tax return every year - even with non resident FTP status....just to pay tax on interest on money i have in the bank (which is not necessary as you can have it automatically deducted). It kinda keeps me on the tax radar so that when i come back and bring my $$ back theres not a black hole for 10 years and then someone coming back in and transferring substantial amounts of $$.
Leaving home to come over is the easy part...its going back home where everyone comes undone. (usually with the tax dept)
Tax law in Oz is different to civil / criminal law.......the burden of proof is on you to prove yourself innocent....not for them to prove you guilty. So leaving years and years of no tax returns then coming back and moving money around might open you up to having to do a lot of explaining - and could lead also lead them to dig deeper into your past.
I''d rather stay on the radar somewhat. I've got plenty of friends that dont do it that way though....they're earing big bucks over here and are just going to play it by ear when they get back.
Youd be risking having to pay tax on your whole years income to use your medicare card while non resident FTP - if it was even possible at all.
As far as "handing the card in" - that doesnt matter at all - its not necessary - you just dont use it.
Likewise with Oz super......you can no longer contribute to Oz super if your non resident FTP.
I have about 5 different super accounts...all with different providers, it a mess - i havent contributed to any of them in a long time - but i just wanted to roll them all into one - and was told in no uncertain terms by my accountant to not even go near them until i was back as a resident for tax purposes...not even to roll them into each other. In her words - for me to be seen contributing or operating any of my super funds in oz in any way could negate my status as non resident and open me up to the entire years tax burden.
So make sure all your super is straightened out before tickng the box on your tax return that say Non resident FTP (and thats basically all it amounts to officially to become a non resident FTP....just ticking the box on your tax return amd following the basic rules). By the way i still do a tax return every year - even with non resident FTP status....just to pay tax on interest on money i have in the bank (which is not necessary as you can have it automatically deducted). It kinda keeps me on the tax radar so that when i come back and bring my $$ back theres not a black hole for 10 years and then someone coming back in and transferring substantial amounts of $$.
Leaving home to come over is the easy part...its going back home where everyone comes undone. (usually with the tax dept)
Tax law in Oz is different to civil / criminal law.......the burden of proof is on you to prove yourself innocent....not for them to prove you guilty. So leaving years and years of no tax returns then coming back and moving money around might open you up to having to do a lot of explaining - and could lead also lead them to dig deeper into your past.
I''d rather stay on the radar somewhat. I've got plenty of friends that dont do it that way though....they're earing big bucks over here and are just going to play it by ear when they get back.
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Wow i do find it interesting that you cant roll one super account into another? As long as you didnt contribute I couldnt see it being a problem, but surely you could argue to roll one into another and save on fees is only management. I would maybe seek alternate advice as i think your accountant might be just playing it safe. Though that can be a good strategy.
There is also no reason why you cant get full access and take all your super out and put it in an offshore fund that may be doing better to add to the argument that you didnt intend to return to australia.
There is also no reason why you cant get full access and take all your super out and put it in an offshore fund that may be doing better to add to the argument that you didnt intend to return to australia.
Was told in no uncertain terms not to touch it. 1 years tax is around 90K....is it really worth risking it? Maybe playing it safe, but for a decent reason.
I didnt ask about pulling it out alltogether - only rolling it into one fund inside Oz - but it does seem like a good strategy - then could roll it together o/s.
Also if your leaving or intending to leave indefinitely and have a good investment strategy, you get the full amount, you dont have to wait to 70 or whatever the retirement age is these days? I reckon it will be 170 in a few years!!!
In the olden days (about 10 years ago) it was possible to access your preserved super benefits when you left Australia permanently subject to meeting certain conditions. The rules were changed from July 1998 which now means that any Australian citizen who moves overseas permanently cannot access super benefits unless they satisfy a condition of release. The rationale for this policy is that Australian citizens may return to Australia to retire, or at least have the option of retiring in Australia.