Sat, 04 Nov 2000

Income tax of expats

Referring to the article in The Jakarta Post, on Nov. 1, 2000 on page 1, titled Expats must pay tax for income earned abroad, I would like to clarify some misquotations or misprints.

In the second paragraph it is written: "Chief of the office responsible for foreign institutions and individuals ...". It should have been the Head of the Section of Individual Income Tax of BADORA Tax Office.

In the 10th paragraph it says: "With around 1.3 million expatriate taxpayers last year, they paid some Rp 45 billion in tax. If the figure can be increased to be Rp 60 billion it will be a significant contribution". It should have been: With 800 expatriate taxpayers last year, they paid some Rp 44 billion in tax. If the number of taxpayers can be increased, it will provide a significant contribution.

It should be noted that the expatriates included in the context of domestic taxpayers in compliance with the Law on Income Tax are obliged to have their own tax identification number (NPWP), and report all their income earned either in Indonesia or abroad in whatever name and form submitted in the annual letter of notice (SPT) for individual income 1770. With this consideration, the BADORA Tax Office appeals to all expatriate taxpayers who do not have a NPWP to immediately and voluntarily register themselves.

If the income earned abroad has already been taxed, in order to avoid double taxation, the tax already paid offshore can be credited against the Indonesian income tax. The assessment of the tax is done in accordance to Article 24 of the Law on Income Tax.


Head of Section

of Individual Income Tax

of BADORA Tax Office