Thread: Incomes taxes in Indonesia

my retirement will be payed in my country but as a resident in Indonesia I will have to declare my incomes I guess

I don't see why you should declare your pensiun or pay tax for it in Indonesia? If you were an Indonesian citizen reciving Indonesian pensiun then yes.. but for a foreign resident? I don't think so but i could be wrong. :?

Well. My point is that if I become a non resident then I will not pay any tax in my country. I supposed that when you are in a foreign country you have to declare your incomes an pay taxes.
For exemple if an Indonesian citizen come in Europe, he will have to declare it's income. This is the way I see it. I may be wrong.

Philippe

I would imagine that you only have to declare the money you earn in Indonesia and pay tax on it.

I'm also trying to find out more about this subject. I think that you're right Tina, but I'm not 100% sure. So if there's anyone out there with more info, pleeeeease? Thanks. We'll be in Bali 8 Jul for 2 wks, so there'll be a beer or 2 in it! :)

I believe these are the applicable tax tariffs at the moment. Usually tax is paid in the country where the salary is paid. If you will be taxed in Indonesia, you might be able to deduct this in your home country. This could be interesting to investigate as well. One tax percentage is applied to the whole income, so if you earn 75 million per year, you pay 15% over the whole amount.

<25 mill. 5%
25-50 mill 10%
50-100 mill. 15%
100-200 mill. 30%
200 mill< 35%

My understanding from reading this is that

Even though I have paid tax in Australia on my superannuation I still have to pay tax in Indonesia on what I have in the bank in Australia because I have a retirement visa.

Income taxes...what a nasty subject. I don’t know any expats receiving an income from outside Indonesia who pay any income tax in Indonesia. Then again, maybe I associate too much with the criminal element? :shock:

Interest earned on bank accounts is taxed, and on the same level, i.e., foreigners and locals. Those who work for an employer pay tax, but almost always this is paid by the employer, i.e. the labor tax. Those who have a business pay a business tax, which I guess could be called an income tax, as well as a labor tax, which I guess you could call the income tax for the workers.

Indonesia has nowhere near the infrastructure and bureaucratic mechanisms in place to even come close to monitoring the income of its citizens, let alone the expat community. It’s peaceful knowing you will never be subject to an IRS audit ever again!

Then again, Indonesia doesn’t support 20% of its citizens on welfare or other social schemes that drains the income from those who chose to work.

Before running off to your regency tax office with a pocket full of rupiah and income statements, I would suggest a good sit down with an attorney...not a notaris...but a lawyer to be sure of your tax “obligations” if in fact as a retiree, there are any.

Thanks Roy. I will follow your advice.
Spitfire, I do not know what are the rules in Australia, but in France if you are resident in another country you make a "quitus fiscal". It mean that the incomes tax Dpt do not recognize you has a resident in France any more, provising that you prove your residency in a foreign country. So my point is that if I do not pay taxes in France I will logically be obliged to declare my incomes in the country of residence, Indonesia. As Roy point it out, I will check first what are the rules for retiree....And the national games in France is not socker but tax evasion....lol.
Thanks to all for your answers, it seems though that not so many of us has thought of taxes when retired in Indonesia. I can hurt badly if not prepared.

Philippe