Explanation of exit tax exemption

Explanation of exit tax exemption

From Bisnis Indonesia

In response to Ms Yenny Rosmiyani's letter published in this
newspaper on July 25, 2001, allow us to give the following
explanation:

1. Article 2 sub-article (3) of Decision of the Director
General of Taxation No. Kep. 37/PJ/2001 dated Jan. 15, 2001 (on
exemption of university and school students wishing to study
abroad from the compulsory payment of the income tax on private
persons wishing to go abroad), stresses that "university or
school students returning to Indonesia on holiday and returning
to where they study abroad will be exempted from the compulsory
payment of exit tax for only 4 (four) times within 1 (one)
calendar year as long as the provisions (laid down in Article 3
figure 15 of Government Regulation No. 42/2000 on the payment of
the income tax of private persons wishing to go abroad) are
complied with.

2. Article 3 figure 15 of Government Regulation No. 42/2000
states, "Indonesian citizens domiciled abroad and having an
official identity card as a resident of this particular country
and not earning or receiving income from Indonesia, shall be
exempted from compulsory payment of the income tax on private
persons wishing to go abroad as long as they stay in Indonesia
not longer than 183 (one hundred and eighty-three) days within a
period of 12 (twelve) months, and this exemption shall be granted
for 4 (four) occasions within a period of 1 (one) calendar year.

3. Official documents which can be legally considered as
official identity cards as foreign residents (Penlu) for
Indonesian citizens domiciled abroad shall be:
a. green cards;
b. identity cards;
c. student's cards;
d. validation of overseas address in the passport by the
Representative Office of the Republic of Indonesia abroad;
e. a certificate from the embassy of the Republic of Indonesia or
the Representative Office of the Republic of Indonesia abroad;
f. official statement made on the passport by the immigration
office of the particular country in question.

These foreign residents wishing to have a vacation in
Indonesia and return to their place of study abroad must file an
application for a certificate of exemption from exit tax (SKBFLN)
provided by the exit tax executive unit (UPLN).

NONO HANAFI

Director of Taxation Counseling