Hi, I just joined here but have been lurking a bit......

Just looking for a little bit of advice on personal tax in Indonesia if anyone knows.......

If I have earn foreign income in other countries and choose to live in Bali will I be taxed on this income?

Any advice is helpful.

Cheers,

Dave

hello DG.

if you are a legal resident of indonesia (ie, have a KITAS) or are deemed to be resident by virture of staying here more than 183 days in any year, then you will be considered a tax object, and be required to report your (worldwide) income, and to pay tax on that income. if you have already paid tax on any income in a jurisdiction that has a double tax treaty with Indonesia, then you will not have to pay tax again on that income.

meanwhile, back in the real world, it would be unlikely that indonesian tax office would ever find out about overseas income unless you actually told them. on the other hand, if you reported you had *no* income for any year, the tax office would reasonably surmise that you had been living on fresh air and sunshine, and may be become skeptical.

Good to be reminded of this easily forgotten "gotcha" clause in the law, KKK.

Would you say what the tax rate is for a sum of, say, 1-2 juta per month or, at most, below 5 juta month?

Also, what if you were living on a retirement visa and your INA wife had a small home business that brought in the income for you and her? If she filed tax on a smallish number, would that be more reasonable to the authorities?

Thanks for any info.

the amount of tax you pay depends on how you structure the wage. bonuses attract less tax than normal wages, for instance.

but as a guide, someone earning 2jt per month would pay about Rp40.000. someone on 5jt would be paying about Rp200.000.

technically speaking, your wife is your chattel, thus her income is your income. but if she has her own tax number, then this could be easily overlooked. as long as what she files looks plausible, she should not have problems.

Okay, I realize PriceWaterhouse and Okusi don't stay in business by giving away free information, but let me just clarify this point, okay?

I am on a retirement visa. My wife earns money from her home business. She does have a (new) tax number. I was thinking that, her income is "our" income as you stated [It's the Bonfires of the Vanities Rule #21: "What's yours is mine, and what's mine is my own!"]

So, what would be better? She files her tax statement and pays the tax due and I just sit still and tell this story if I am ever asked by an "interested gov't party"? Or, I get a tax number and I file the tax as if the income is mine in retirement, and my wife sits still?

Thanks for any more info, if you have the time.

FW

And Kuku goes schtum.

And Kuku goes schtum.

i am not a tax advisor. anything i say here comes with absolutely no warranty. if you want to properly organise your affairs then you should consult a professional who is able to take responsibility for the advice they give you. few and far between in this country.


fwiw, i would do separate tax filings. less complicated.

See, I knew he could be a good boy, if he wanted.