This is a copy/paste from the expat indonesian website which is considered useful for newcomer expats to Indonesia
What Income is Included
The Indonesian personal taxation system is based on worldwide income. This includes:
•Any salary paid to you for your current position, whether it be onshore or offshore
•Dividend and interest income, both onshore and offshore
•Rental income both onshore and offshore
•Capital gains from sale of property, both offshore and onshore
Benefits in Kind are generally excluded: Housing, Cars, School fees, as well as income from inheritance. However, if your company pays you for housing in one lump sum, and then you make the payments ... the tax office may construe that lump sum as income. In this case, it may be better for your employer to pay the housing costs direct to the landlord. You take the money as an advance, not as housing allowance. The company then expenses one month at a time as housing, which is then treated as a fringe benefit.
Credit is given for income tax paid overseas, subjected to limits and perhaps dependent on double taxation treaties between Indonesia and your home country. You may also receive credit for tax taken on interest income for local bank accounts and time deposits and other interest earning methods that are taxed.
Since income from overseas investments can be taxed by the Indonesian government, it is best to consult your accountant and your financial consultant to determine how regulations will affect any current and future investment strategies.
