Does Indonesia tax foreign income?

Indonesian citizens that are living outside of Indonesia for more than 183 days in 12 months and meet certain requirements can also be considered as foreign tax subjects. Non-resident individuals are subject to a general withholding tax (WHT) at 20% in respect of their Indonesian-sourced income.

Does Indonesia tax worldwide income?

Who is liable? Indonesian resident taxpayers are subject to tax on worldwide income. Non-residents are subject to tax on Indonesian-source income only. Diplomats and representatives of certain international organisations are excluded from Indonesian tax if the countries they represent provide reciprocal exemptions.

Do expats pay tax in Indonesia?

The tax office requires all expatriates resident in Indonesia to register with the tax office and obtain their own separate tax number (NPWP) and pay monthly income taxes, file annual tax returns, and pay tax on their income earned outside Indonesia, less tax paid in other jurisdictions on the additional overseas …

What countries do not tax foreign income?

Some of the most popular countries that offer the financial benefit of having no income tax are Bermuda, Monaco, the Bahamas, Andorra and the United Arab Emirates (UAE).

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What is the income tax in Indonesia?

Companies in Indonesia are taxed at a rate of 25%, for both domestic and international sourced income. Resident Indonesian companies are required to withhold tax at a rate of 20% from payments to foreign companies.

Is there capital gain tax in Indonesia?

Capital gains are generally assessable at standard income tax rates, together with other income of the individual. The exceptions are: Sale of land and/or buildings located in Indonesia. The tax is 5% final tax (or 2.5% from 8 September 2016) on the taxable sale value or the actual proceeds, whichever is higher.

Do foreign workers pay taxes?

In most cases, a foreign national is subject to federal withholding tax on U.S. source income at a standard flat rate of 30%. A reduced rate, including exemption, may apply if there is a tax treaty between the foreign national’s country of residence and the United States.

Is Indonesia a territorial tax system?

Under the Omnibus law, a foreign citizen staying in Indonesia for more than 183 days within 12 months is treated as an SPDN and taxed on Indonesian- sourced income only (territorial basis) if the individual has certain skills. Indonesian-sourced income includes income earned in Indonesia but paid overseas.

Is Bali tax free?

There are no taxes on capital or assets, apart from the land and building tax.

How much foreign income is tax free?

The Foreign Earned Income Exclusion (FEIE, using IRS Form 2555) allows you to exclude a certain amount of your FOREIGN EARNED income from US tax. For tax year 2020 (filing in 2021) the exclusion amount is $107,600.

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What countries tax foreign income?

The US, along with New Zealand, Luxembourg (residents) and Eritrea, are some of the only countries with the worldwide income tax for their people. Which means as a citizen or legal resident of these countries, the government taxes all your income, both foreign and domestic.

Which country has no tax?

Countries where people live tax-free!

  • Bahrain. The oil-rich country is one of those, where there are no corporate or income taxes. …
  • Brunei. Brunei is also lenient on its citizens and levies no income taxes on individuals. …
  • Bermuda. …
  • Monaco. …
  • Oman. …
  • Qatar. …
  • Kuwait. …
  • The Bahamas.


What is final tax Indonesia?

Dividends received by resident individual taxpayers are subject to final income tax at a maximum rate of 10%. b. Non-resident recipients: 20% (lower for treaty countries) final withholding tax is due on dividends paid to a non-resident recipient.

What is the property tax in Indonesia?

The tax rate is set by the national law at 0.5%, assessed on the capital value of land and improvements. This tax rate is uniform throughout Indonesia—applied equally to all property types. Local governments do not have any discretion in setting the property tax rate.

Is there VAT in Indonesia?

Value-added tax (VAT) With a few exceptions, VAT is applicable on deliveries (sales) of goods and services within Indonesia at a rate of 10%. VAT on export of goods is zero-rated, while the import of goods is subject to VAT at a rate of 10%.

Notes from the road