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