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#92458 - 26 Dec 08 09:58 JP/Unregistered taxpayers to pay double for exit tax
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Unregistered taxpayers to pay double for exit tax

Aditya Suharmoko, The Jakarta Post, Jakarta

The tax office has officially announced an increase in the much-decried fiskal, or exit tax for travelers going overseas, in part to put to rest widespread speculation over the amount of the increase.

The exit tax for those aged 21 years and above departing from airports will be raised from Rp 1 million (US$91) to Rp 2.5 million, and for those traveling by sea from Rp 500,000 to Rp 1 million, effective Jan. 1, 2009, to Dec. 31, 2010.

However, registered taxpayers will not have to pay a single cent; and starting from 2011, the exit tax will be scrapped altogether, according to the Finance Ministry’s directorate general of taxation.

Director general Darmin Nasution said the increase in exit tax was part of an effort to get more potential taxpayers to register for a tax number (NPWP).

It is proving a smart ruse, with many middle-to-high-income residents flocking to nearby tax offices to get an NPWP to comply with the office’s Sunset Policy program that ends on Dec. 31.

The program, under which applicants’ tax obligations in previous years are written off, has seen people rushing to register themselves.

This month alone, the number of people registering for an NPWP was between 50,000 and 100,000 per day, up from about 7,000 people daily in previous months.

The exit tax will from now on become an up-front payment for income tax.

For instance, an employee whose income tax is Rp 20 million per year and who has traveled abroad twice this year — paying Rp 1 million in exit tax each time — will only have to pay Rp 18 million in income tax when filing their tax returns in March 2009.

For those not yet registered, the new exit tax of Rp 2.5 million could prove very daunting.
Satria Ramadhan, who will go to Bangkok for holidays in early January, said he was glad to have registered for an NPWP.

“Otherwise, I would have to pay Rp 2.5 million. I would have definitely canceled my trip if I had to pay such a huge amount.”

Another traveler, Frederick Tobing, praised the move by the directorate general of taxation.
“It’s a smart move. Most people, including myself, will rush to register at the tax office, just to avoid paying the exit tax.”

The directorate general of taxation estimates up to 10 million new taxpayers have registered this year, Darmin said.

“I didn’t expect the number to be this huge. No one expected to tap 10 million new taxpayers,” he said.

To get exemption from paying the exit tax, registered taxpayers must submit a copy of their NPWP, passport and boarding pass to tax officials at airports or ports.

If the NPWP is declared valid, the officials will put a “free exit tax” sticker on the boarding pass. If it is not valid, travelers will have to pay the exit tax.

* 1. Exit tax from airports for people aged 21 years and above raised from Rp 1 million
to Rp 2.5 million.
* 2. Exit tax from ports for people aged 21 years and above raised from Rp 500,000
to Rp 1 million.
* 3. Those automatically exempt from paying the exit tax include: People aged less than
21 years; foreigners staying in Indonesia no more than 183 days within the last 12 months; diplomats; employees of international organizations; Indonesian citizens with official
documents from other countries, including students; Haj pilgrims and Indonesian migrant laborers.
* 4. Those exempt from paying the exit tax but required to provide documentary proof: Foreign students with letters of recommendation from their universities; foreign researchers; foreign workers in Batam, Bintan and Karimun; disabled or ill people seeking medical treatment abroad paid for by social organizations; people traveling for art, culture, sport and religious missions, and students in a student-exchange program.
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#92463 - 26 Dec 08 12:55 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: KuKuKaChu]
Marmalade Offline
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Registered: 18 Apr 08
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Loc: Jak
So Beckham, the rich fuck is exempt, while I, as an EDUCATOR (that's right mofos, BLOCK CAPS it is) have to pay to pass on my boulders of wisdom. Something ain't right...
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#92465 - 26 Dec 08 13:12 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: Marmalade]
KuKuKaChu Moderator Online   happy
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Quote:
* 3. Those automatically exempt from paying the exit tax include: People aged less than
21 years; foreigners staying in Indonesia no more than 183 days within the last 12 months; diplomats; employees of international organizations; Indonesian citizens with official
documents from other countries, including students; Haj pilgrims and Indonesian migrant laborers.

this seems to infer that foreigners who do not have KITAS, but use social or business visas on a long-term basis, will now be liable to pay fiscal.
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#92468 - 26 Dec 08 13:48 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: KuKuKaChu]
Polisi Cepek Offline
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I saw that too, but AFAIK that rule has always been in place, whereas they just seem to look at the visa type, not how long you've been around. Could it be more a way of letting people who have a KITAS but spend less than half the year here off the hook?
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#92469 - 26 Dec 08 13:52 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: Polisi Cepek]
Polisi Cepek Offline
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Registered: 17 Mar 07
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An exemption that does not apply does not an obligation make, as Yoda might say.


Edited by Polisi Cepek (26 Dec 08 13:53)
Edit Reason: yoga
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#92645 - 31 Dec 08 08:35 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: Polisi Cepek]
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Tax office gears up to phase out abhorred exit tax

Aditya Suharmoko, The Jakarta Post, Jakarta

As the enforcement draws near of a new policy on the much-decried fiskal, or exit tax for travelers going overseas, the tax office says it will do its utmost to spare travelers any inconvenience.

On Tuesday, Darmin Nasution, the Finance Ministry’s director general of taxation, said his office had set up all the necessary systems at international ports and airports to support the new “free exit tax” policy.

Besides performing real-time simulations, the directorate has also prepared directions and pamphlets to guide travelers looking to benefit from the exit tax exemption.

“There will be directions for each group wishing to get exit tax exemption, so they won’t get confused,” Darmin said.

All of the country’s international gateways will feature a line for each of the three types of tax-exempt travelers — registered taxpayers, those below 21 years of age, and those with supporting documents.

Under the new policy, the exit tax for those aged 21 years and above departing from airports will be raised from Rp 1 million (US$91) to Rp 2.5 million, and for those traveling by sea from Rp 500,000 to Rp 1 million, effective from Jan. 1, 2009, to Dec. 31, 2010.

The tax will apply only to those not in any of the three groups.

The exit tax will be scrapped entirely by 2011.

“After checking in at ports or airports, registered taxpayers will need to validate their tax numbers (NPWP) with the tax office (there), and bring a copy of their NPWP,” Darmin said.

Family members of registered taxpayers seeking exemption from the exit tax will have to provide a copy of the “family card”, he added.

Under the new income tax law, people below 21 years of age are exempt from paying the exit tax. The previous law only exempted children below 12 years of age.

Those seeking to avoid the tax must register for an NPWP at least three days before departing, to allow the tax office sufficient time to prepare the files needed at the gateways.

“We can make the service faster; we’re bringing our master file (to the ports and airports), putting our entry there,” Darmin said.

However, the tax office previously said if the NPWP was rejected by port officials, travelers would have to pay the tax.

The new exit tax policy is aimed at encouraging middle- to upper-income residents to pay taxes. At present, only 10 million taxpayers out of the country’s total population of 230 million people have been registered by the tax office.

Those exempt from paying exit tax directly:
1. People below 21 years of age
2. Foreigners staying in Indonesia no more than 183 days within the last 12 months
3. Diplomats and people working for the diplomatic corps
4. International organization officials, including families
5. Indonesian citizens with residency permits from a foreign country
6. Haj pilgrims
7. Indonesian citizens working abroad
8. People departing Indonesia by land
9. NPWP holders and their dependents

Those exempt from paying exit tax, with supporting documents:
1. Foreign students in Indonesia
2. Foreigners involved in research in science and culture, cooperation in technology, religious and humanitarian missions
3. Foreigners working in Batam, Bintan and Karimun and liable to pay income tax as per Article 21 or Article 26.
4. Disabled and ill people seeking medical treatment abroad paid for by social organizations
5. Members of art, culture and sport missions who represent Indonesia abroad
6. Students in a student-exchange program
7. Indonesian citizens working abroad with approval from the Manpower and Transmigration Ministry
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#92678 - 01 Jan 09 11:10 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: KuKuKaChu]
KuKuKaChu Moderator Online   happy
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From The Jakarta Post

Editorial: Exit tax freed, less red tape?

Wed, 12/31/2008 10:51 AM | Opinion

The 150 percent increase in exit tax fees to Rp 2.5 million (US$210) as of Jan. 1, 2009, Indonesian citizens aged 21 years and older will have to pay each time they fly out of the country-- unless they hold a taxpayer identification number (NPWP) -- has turned out to be a most effective way to net new taxpayers.

Across Indonesia, in the few weeks since the government announced the planned tax measure the number of people registering for taxpayer numbers has increased more than tenfold, with up to 100,000 new applications a day. The tax office may have booked more than 10 million new taxpayers this year alone.

However, the new measure has yet to pass one crucial test: How easy will it be to verify outbound travellers' tax documents at international terminals, to check if they truly qualify for exemption.

According to the directorate general of taxation, travelers must submit a copy of their taxpayer number, a passport and a boarding pass to tax officials at airports or seaports for verification before they can obtain a "free exit tax" sticker for their boarding pass.

This means the taxation directorate will need to set up special counters for verification which, if not conducted efficiently and properly, could become a new bureaucratic hassle for travelers hurrying to catch flights.

The tax office is well advised to recognize that verification is much more time consuming than the simple exit tax payment system already in place and operated by commercial banks in departure halls.

Tax officials should see to it that the verification runs smoothly so travelers are not held up in long queues, potentially causing them to miss flights.

The ease and efficiency of this verification will depend on how the tax office manages its workload during peak flows of outbound travelers.

Better yet, if the tax office could set up a system allowing travelers to use their taxpayer identification cards as smart cards for seamless verification.

But again, registering taxpayers is only the first step in the ongoing drive to broaden the national taxpayer base. The tax office also needs to develop an effective and efficient tax administration and introduce tough law enforcement to minimize tax evasion and tax fraud.

If law enforcement remains lax and the institutional capacity of the tax administration is not improved, the massive number of new taxpayer registrations could turn out to be a flop, as happened in a similar campaign in 2005.

In 2005, the tax directorate boasted having almost tripled the number of registered taxpayers to more than 10 million individuals, but the number of taxpayers who filed annual tax returns last year remained stagnant, at around 3.7 million as of this year.

The concerted tax campaign this year has also registered more than 10 million new taxpayers, but what is the significance of these new registrations unless the number of taxpayers filing annual tax returns increases significantly too?
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#92685 - 01 Jan 09 12:32 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: KuKuKaChu]
Marmalade Offline
Pujangga

Registered: 18 Apr 08
Posts: 2471
Loc: Jak
Quoting: KuKuKaChu
Tax office gears up to phase out abhorred exit tax


Good old JP, editorialising in its heads!

Utter wank...
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#92717 - 02 Jan 09 10:12 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: Marmalade]
KuKuKaChu Moderator Online   happy
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Flying the friendly skies without ‘fiskal’

Mariani Dewi, The Jakarta Post, Tangerang | Fri, 01/02/2009 8:25 AM

Airline passengers exempt from paying the fiskal, or exit tax at Soekarno-Hatta International Airport said they were happy with the new policy on the first day of its implementation on Thursday, adding the exemption procedure was easy.

Ratu, a civil servant and mother of three, was booked on a flight to Bangkok with her husband and children on Thursday. The tax number (NPWP) she had held for many years meant she was exempt from paying the exit tax.

“I’m impressed with the service, it was so fast. It only took five minutes for the whole family to get exemption,” she said.

She added airport officials only asked to see her and her husband’s NPWPs.

A South Korean expatriate, Kim Sung Kyung, about to board a flight home to Seoul, said the new policy had helped him greatly because he traveled several times a year for medical treatment.

“I’m very happy about this new policy, because I used to pay a million (rupiah) every time I flew,” he said.

However, Kim also said many of his Korean friends were not aware of the policy.
Park Ju Tae, president director of a private company, was one of those left in the dark. On Thursday, he paid Rp 2.5 million to board his flight to South Korea.

“I was surprised by the raise. It gave me a headache. Many of my Korean colleagues didn’t know about this policy. Fortunately, I brought enough money. Had I not brought enough, I would have had to cancel the trip,” he said.

Viki Ariawan, head of the tax office’s monitoring and service division at the airport, said the government had publicized the new NPWP policy since 2007 through all kinds of media. However, he said he was aware the exit tax policy was published less than two weeks ago.

Agus Purnomo Adi, head of tax office’s exit tax division at the airport, said that on the first day of the implementation, hundreds of passengers still paid the tax.

“I’ll get the full report by midnight, but I guess the number of those who paid will be less than before because many got exemption,” he said.
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#92727 - 02 Jan 09 21:07 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: KuKuKaChu]
bulegaul Offline
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Registered: 15 Nov 05
Posts: 260
Loc: Batavia
On xmas morning, after checking in with SQ (at 5am...first flight) the line up for the fiskal was 10 people long at each counter (only 2 guys working).. wonder how it will fare up now, with the new system...
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#92934 - 05 Jan 09 13:14 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: KuKuKaChu]
KuKuKaChu Moderator Online   happy
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Number of passengers to Singapore drops


Batam (Antara News) - The number of Penguin ferry passengers to Singapore at the Sekupang International Ferry Terminal (TFIS) in Batam dropped 75 percent at the New Year holiday.

"Today there were only 248 passengers and on Friday 275 while on Thursday only 215 passengers," Zulkifli, coordinator of the Penguin Citra Bahari Ticket Counter at the TFIS, said Saturday.

As of January 1, 2009 the Indonesian government applied a new overseas travel tax on those who had not registered as taxpayers or had no taxpayer's registration number (NPWP) and exempting those already having NPWP.

Ferry passengers abroad who have no NPWP are required to pay Rp1 million each for the tax and air passengers Rp2.5 million.

Zulkifli said passengers to Singapore during the holidays usually reached around 400 a day and even 500 ahead of Christmas.

The drastic drop, according to him, was caused by the imposition of the new overseas travel tax regulation.

On the first and second day of the implementation of the new tax regulation tax office at TFIS collected Rp17 million and Rp27 million respectively from passengers with no NPWP.

Bukhtarnazar, a tax official, said he had received a lot of questions from people in connection with the new tax regulation such as on whether a person working in Singapore and holding an ID of that country is also required to have an NPWP in order to be exempted from paying the overseas travel tax. (*)
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#93062 - 06 Jan 09 22:47 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: KuKuKaChu]
flingwing Offline
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Registered: 28 May 07
Posts: 188
Loc: Jakarta
Question for KuKuKaChu

KKK, you reported that the increased Fiskal applies to those using Visa on Arrivals (VoA) for more than 6 months out of the past 12.

The law became effective 1 January. Is that rule about paying fiskal for VoAs retroactive into 2008, or did the 6 months-out-of-12-months period start this past 1 January?

Thanks.

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#93066 - 07 Jan 09 02:25 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: flingwing]
Polisi Cepek Offline
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Registered: 17 Mar 07
Posts: 809
Loc: Di tengah hutan
Has anyone got a copy of the text of the new regulations, i'd like to see whether the tax does apply or not to people using dinas/sosbud/business etc. It never used to...
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#93067 - 07 Jan 09 05:05 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: Polisi Cepek]
kenyeung Moderator Offline
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#93068 - 07 Jan 09 07:23 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: kenyeung]
KuKuKaChu Moderator Online   happy
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Registered: 09 Oct 05
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thank you, ken.

article 1 is abundantly clear on this matter:



does not mention visa type whatsoever. basically, if you are present in indonesia for more that 183 days in a year, then you are a Tax Subject. to avoid paying fiskal, you must have a tax number; no ifs or buts.

there are exceptions for people on visa dinas and a few other less common categories.
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#93069 - 07 Jan 09 07:33 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: flingwing]
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Quoting: flingwing
KKK, you reported that the increased Fiskal applies to those using Visa on Arrivals (VoA) for more than 6 months out of the past 12.


See above.

Quoting: flingwing
The law became effective 1 January. Is that rule about paying fiskal for VoAs retroactive into 2008, or did the 6 months-out-of-12-months period start this past 1 January?

i've read through the regulations. this matter is not at all clear. i would *suppose* that the law is active starting 31 Dec 2008, thus you would start counting days from that date.

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#93073 - 07 Jan 09 08:40 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: KuKuKaChu]
Marmalade Offline
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Registered: 18 Apr 08
Posts: 2471
Loc: Jak
I am guessing that they count day 182 as the last day, Like they do with overstay?...
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#93076 - 07 Jan 09 09:05 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: Marmalade]
KuKuKaChu Moderator Online   happy
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they will count the day you enter the country, and the day you left the country.
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#93077 - 07 Jan 09 09:05 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: KuKuKaChu]
KuKuKaChu Moderator Online   happy
Pooh Bah

Registered: 09 Oct 05
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plus one for good luck.
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#93078 - 07 Jan 09 09:25 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: KuKuKaChu]
Roy's Hair Offline
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Registered: 08 Nov 06
Posts: 3974
Loc: jakarta
Utter bees wank. And then suddenly the whole fiscal will be magically scrapped in 2011?




Can't really see those lovely chaps at the airport being really into the idea.
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#93081 - 07 Jan 09 10:00 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: Roy's Hair]
KuKuKaChu Moderator Online   happy
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Registered: 09 Oct 05
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Quoting: Roy's Hair
Utter bees wank.

guess who hasn't got an NPWP ...

Quoting: Roy's Hair
And then suddenly the whole fiscal will be magically scrapped in 2011?

yes, that's the idea.
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#93084 - 07 Jan 09 10:04 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: KuKuKaChu]
Roy's Hair Offline
Pujangga Besar

Registered: 08 Nov 06
Posts: 3974
Loc: jakarta
I believe I have got one actually, Tank de Lord. Even my old school has finally caved in and given the reprobates there some tax IDs. If you're a foreigner married to an Indonesian you can't go on the kartu keluarga though can you Ku? just to digress.
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#93085 - 07 Jan 09 10:10 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: Roy's Hair]
KuKuKaChu Moderator Online   happy
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Registered: 09 Oct 05
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no, you can't go on the kartu keluarga.

i have, however, heard of isolated instances where a foreigner has managed to do this, but i consider this a bureacratic aberation.
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#93090 - 07 Jan 09 10:19 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: KuKuKaChu]
chewwyUK Offline
Pujangga

Registered: 14 Sep 06
Posts: 2392
Loc: Jakarta
on a semi related note I have heard immigration are doing there best to drum up campaign funds. One company got a little visit in December and are now out of pocket by about $10K - OUCH!
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Edited by Piss Salon
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#93093 - 07 Jan 09 10:33 Re: JP/Unregistered taxpayers to pay double for exit tax [Re: chewwyUK]
KuKuKaChu Moderator Online   happy
Pooh Bah

Registered: 09 Oct 05
Posts: 10791
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i'm seeing a little increased activity on the immigration extortion front this week, with clients in semarang and jakarta being given the shakedown, for no legitimate reason.
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