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#52785 - 31 May 07 15:12 Expat taxable income
ChineseGal Offline
Member

Registered: 14 May 07
Posts: 15
Loc: Jakarta,Indonesia
How much is expat taxable income in Indonesia?

It seems that I'm always asking the serious questions here laugh


Edited by ChineseGal (31 May 07 15:12)

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#52788 - 31 May 07 15:27 Re: Expat taxable income [Re: ChineseGal]
chewwyUK Offline
Pujangga

Registered: 14 Sep 06
Posts: 2392
Loc: Jakarta
Expats are subject to a 30% flat rate of tax for the first 6 months (or maybe 3 months) after that they are subject to standard local taxation rates. Strangely the Indonesian tax department also wants expats to pay tax on any earnings they have outside of Indonesia too!! Needless to say I am yet to meet anybody that feels the need to tell the tax department what they have going on outside of indonesia

Of course some companies like to fiddle things by paying a % of the salary offshore. While this is fairly common it is against the law
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Edited by Piss Salon
Edit Reason: taste

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#52793 - 31 May 07 16:00 Re: Expat taxable income [Re: chewwyUK]
naga Offline
Member++

Registered: 18 Jan 07
Posts: 260
Loc: undisclosed location
"Of course some companies like to fiddle things by paying a % of the salary offshore. While this is fairly common it is against the law "

As soon as all the criminals in DKI and the DPD declare their OS income, i'll do mine too....
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"Keep on rockin' in the free world"

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#52796 - 31 May 07 16:06 Re: Expat taxable income [Re: naga]
KuKuKaChu Moderator Offline
Pooh Bah

Registered: 09 Oct 05
Posts: 10790
Loc: Centre of the Universe
Quoting: naga
"Of course some companies like to fiddle things by paying a % of the salary offshore. While this is fairly common it is against the law "

As soon as all the criminals in DKI and the DPD declare their OS income, i'll do mine too....

and as soon as they do that, i'll be finding another shithole to live in.
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KuKuKaChu: dangerously too sophisticated

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#52797 - 31 May 07 16:07 Re: Expat taxable income [Re: chewwyUK]
Capt. Mainwaring Offline
Pujangga Besar

Registered: 16 Aug 06
Posts: 3225
Loc: here
For your general entertainment -

DT9654 - Particular agreements: Indonesia: Interest
Under the agreement the Indonesian tax on interest received by a United Kingdom resident is reduced to 10 per cent There is no requirement that the recipient must be subject to United Kingdom tax on the interest (Article 11(2)).

DT9652 - Particular agreements: Indonesia: Source of income
For the purposes of the credit Article (Elimination of double taxation), profits and capital gains earned by a resident of the United Kingdom which may be taxed in Indonesia in accordance with the agreement are deemed to arise from sources in Indonesia Article 21(4).

DT9661 - Particular agreements: Indonesia: Relief from Indonesian tax
No special forms for claiming releif from Indonesian tax are available in this country. Claims for exemption and reliefs should be made by letter addressed to Department Aeuanggan, Jalan Labangan, Banbeng Timur, Jakarta Busat Indonesia.

A residence certificate (see INTM162030) will be required in support of the claim.

DT9656 - Particular agreements: Indonesia: Fees for services
Indonesia levies a withholding tax on fees paid for services rendered in Indonesia. Under the agreements Indonesia may tax such fees where paid to a resident of the United Kingdom only in the circumstances set out in Article 5(3) of the agreement and then only in accordance with the rules laid down in the business profits article (Article).

See INTM163100 for the method of calculation of tax credit relief.

http://www.hmrc.gov.uk/manuals/dtmanual/DT9650+.htm

Unfortunately the DKP are correct in their assertion that tax is due - and things are getting tighter .





_________________________
I also made a vegetarian version,with tempe and tofu chunks for myself and others.Get over it.
Kosong.Wolo.Setunggal.Setunggal.Setunggal.Kosong.Pitu.Setunggal.Kosong.Wolo=Tempik

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#52807 - 31 May 07 17:22 Re: Expat taxable income [Re: Capt. Mainwaring]
riccardo Offline
Pujangga

Registered: 12 Oct 05
Posts: 2195
Loc: Jakarta
Whew...I'm sure glad that it's against my beliefs, as an anarchist, to pay taxes to any government.
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Just here proffering my pearls to swine, my throat to wolves and my trousers to the flagpole.

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#52808 - 31 May 07 17:27 Re: Expat taxable income [Re: riccardo]
Capt. Mainwaring Offline
Pujangga Besar

Registered: 16 Aug 06
Posts: 3225
Loc: here
Quoting: riccardo
Whew...I'm sure glad that it's against my beliefs, as an anarchist, to pay taxes to any government.


So you don't pay and don't submit any returns ?

What is your definition of "anarchy" - refusing to eat your noodles ?
_________________________
I also made a vegetarian version,with tempe and tofu chunks for myself and others.Get over it.
Kosong.Wolo.Setunggal.Setunggal.Setunggal.Kosong.Pitu.Setunggal.Kosong.Wolo=Tempik

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#52810 - 31 May 07 17:36 Re: Expat taxable income [Re: Capt. Mainwaring]
Capt. Mainwaring Offline
Pujangga Besar

Registered: 16 Aug 06
Posts: 3225
Loc: here
From experience , it never pays to upset the revenue , they always get their own back , particularly since they learnt to use computers and reference UK immigration and passport agency data .
Much easier to just pay an accountant


Attachments
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_________________________
I also made a vegetarian version,with tempe and tofu chunks for myself and others.Get over it.
Kosong.Wolo.Setunggal.Setunggal.Setunggal.Kosong.Pitu.Setunggal.Kosong.Wolo=Tempik

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#52816 - 31 May 07 18:10 Re: Expat taxable income [Re: Capt. Mainwaring]
riccardo Offline
Pujangga

Registered: 12 Oct 05
Posts: 2195
Loc: Jakarta
Well that's one good thing about having a passport from a country that isn't communist. If you live outside the USA for 9 months in any given calendar year, you pay ZERO taxes of any type. I can't believe you sheep put up with that. You whinge 'til you're purple in the face about everything else on this planet, but you can't tell your own commie gov't, "screw off, I'm not living in the UK this year and I'm thus not paying you any tax".
_________________________
Just here proffering my pearls to swine, my throat to wolves and my trousers to the flagpole.

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#52817 - 31 May 07 18:10 Re: Expat taxable income [Re: Capt. Mainwaring]
Capt. Mainwaring Offline
Pujangga Besar

Registered: 16 Aug 06
Posts: 3225
Loc: here
So which one is "HuneyBunny" then ?
_________________________
I also made a vegetarian version,with tempe and tofu chunks for myself and others.Get over it.
Kosong.Wolo.Setunggal.Setunggal.Setunggal.Kosong.Pitu.Setunggal.Kosong.Wolo=Tempik

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#52818 - 31 May 07 18:12 Re: Expat taxable income [Re: Capt. Mainwaring]
riccardo Offline
Pujangga

Registered: 12 Oct 05
Posts: 2195
Loc: Jakarta
Pulp Fiction?
_________________________
Just here proffering my pearls to swine, my throat to wolves and my trousers to the flagpole.

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#52819 - 31 May 07 18:23 Re: Expat taxable income [Re: riccardo]
Capt. Mainwaring Offline
Pujangga Besar

Registered: 16 Aug 06
Posts: 3225
Loc: here
Quoting: riccardo
Well that's one good thing about having a passport from a country that isn't communist. If you live outside the USA for 9 months in any given calendar year, you pay ZERO taxes of any type. I can't believe you sheep put up with that. You whinge 'til you're purple in the face about everything else on this planet, but you can't tell your own commie gov't, "screw off, I'm not living in the UK this year and I'm thus not paying you any tax".


Sheep ? I think you are mistaken :-

Q2. When I go to live or work abroad, will I continue to pay UK tax?
A2. If you remain treated as resident in the UK for UK tax purposes, normally you will be taxable on your income arising in the UK and overseas. If you are treated as resident and pay tax outside the UK we can give appropriate credit for any tax paid abroad.

If you become treated as non-resident, you will normally only be taxable on your income arising in the UK.

Q3. In what circumstances would I become non-resident?
A3. Normally if you leave the UK to work abroad full-time, you will become not resident and not ordinarily resident in the UK if

your absence and employment from the UK covers a complete tax year (i.e. 6 April to
5 April), and
you spend less than 183 days in the UK during the tax year, and
your visits to the UK do not average 91 days or more a tax year over a maximum of 4 years.
For visits to the UK, days of arrival and departure are not normally counted as days spent in the UK.

Q4. Can I choose to pay tax in the UK rather than in my country of residence?
A4. No. If a double taxation treaty is involved, the country in which you pay tax will be determined as a matter of fact and not choice. More information on Double Taxation Treaties.

Q5. Will I have to pay tax in the country to which I go to live or work?
A5 The country to which you go to live or work may tax you on your world-wide income. This will depend on its own laws. You may need to ask the tax authority there for advice. More information on Double Taxation Treaties.

Q6: Why am I paying tax in the UK on my income when I am no longer resident there?
A6. Income arising in the United Kingdom will remain liable to United Kingdom income tax. However, depending on your nationality and where you live you may be eligible to:-

make a claim for repayment of United Kingdom Income Tax. More information on Double Taxation Treaties
make an application for exemption from United Kingdom Income Tax. More information on Double Taxation Treaties
use any personal allowances to which you may be entitled to offset some or all of your tax liability. More information on Personal Allowances
Q7. I have a bank/building society account in the UK. Will tax still be deducted from interest if I am non-resident in the UK and can I claim repayment?
A7: From 6 April 1996, where you are treated as not resident for the whole tax year, the liability to tax on interest from a UK bank or building society is limited to the tax deducted at source, if any. However, this is provided that the account is not held in connection with a trade, profession or vocation carried out through a branch or agency in the UK.

If you are not ordinarily resident in the UK, you can apply to receive future interest without deduction of tax by providing your bank with a ‘not ordinarily resident declaration’ on form R105. However, please note that not all banks choose to offer the facility of gross interest to non-residents, so please check with your bank first.

If you would like to make a repayment claim for tax already deducted, certain non-resident individuals can claim the UK personal allowance against income liable to UK income tax. If you wish to pursue such a claim, the relevant claim form R43 is available.

If you do not wish to claim personal allowances, or your personal allowances are used against other sources of UK income, then you may be due tax relief under the terms of any Double Taxation Agreement between the UK and your country of residence.
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I also made a vegetarian version,with tempe and tofu chunks for myself and others.Get over it.
Kosong.Wolo.Setunggal.Setunggal.Setunggal.Kosong.Pitu.Setunggal.Kosong.Wolo=Tempik

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#52820 - 31 May 07 18:26 Re: Expat taxable income [Re: riccardo]
Capt. Mainwaring Offline
Pujangga Besar

Registered: 16 Aug 06
Posts: 3225
Loc: here
Quoting: riccardo
Well that's one good thing about having a passport from a country that isn't communist. If you live outside the USA for 9 months in any given calendar year, you pay ZERO taxes of any type. I can't believe you sheep put up with that. You whinge 'til you're purple in the face about everything else on this planet, but you can't tell your own commie gov't, "screw off, I'm not living in the UK this year and I'm thus not paying you any tax".


Actually Riccardo , if you retain any income in the US , I think you will find that you are required to submit a return - see , many of us "Sheep" from the UK still retain residences ( sometimes more than one) from which we extract a rental income (not bad eh £1250/month from one , and a more modest £900/month from the other)- we didn't sell our souls to buy our Indonesian residences .
_________________________
I also made a vegetarian version,with tempe and tofu chunks for myself and others.Get over it.
Kosong.Wolo.Setunggal.Setunggal.Setunggal.Kosong.Pitu.Setunggal.Kosong.Wolo=Tempik

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