Income tax of expats

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.

JOHN HUTAGAOL

Head of Section

of Individual Income Tax

of BADORA Tax Office