12 months business +183 days income tax

Member since 25 April 2019

penelope1234Member25 April 2019 15:17:35

How should I proceed after having reached +183 days in a year with regards to income tax while repeatedly visiting Indonesia on 12 months business visa. I understand that I have to pay tax when reaching that limit per year.

I am employed abroad but likely reach that limit due to very regular and lengthy business trips to the country.

Is Indonesia executing this very strictly? Does immigration count your days and would immediately catch you when they see you reached that limit?

Thanks.

ricardo001 Banned

Member since 17 April 2014

ricardo001Banned28 April 2019 12:38:51

253

Hi,

Foreigners who reside or present in Indonesia for more that 183 days within a single period of 12 months or who are present in Indonesia and have the intention to live in Indonesia. This 12 month period is based on today going back 12 months. It is not a calendar year. (The 鈥渋ntention鈥� to live in Indonesia is seen by such actions as applying for a work permit, owning or renting a house for an extended period, and bringing family members to Indonesia.) Please be advised that, according to the law, those who must pay Indonesian income taxes if they've been here the 183 days in a calendar year, includes, those expats here on ITAS , ITAP, business visa or social/visit visas!
If you stay less than 183 days in a year, then you may not be obligated to pay Indonesian income tax (only taxes from your home country).. You must prove it by showing your visa stamp and fill out FORM 1770 Individual and Monthly SSP (Surat Setoran Pajak). Of course you must have an income tax number first to complete this form.
Dependent spouses are included in the husband's tax number and do not have to have a separate number.

At the moment,immigration system is not connected to tax office,unlike doing oss etc. which is now connected at tax office.

If your having business Visa and staying here for quite at long time,immigration officials will soon question you.

Business Visa is only valid,attending seminar,events etc.for few days.

You may do itas 312 or investor Visa if you have a company in Indonesia.

Just a friendly advise,
Ricardo