Males to be taxed as family heads in foreigners tax bill

Males to be taxed as family heads in foreigners tax bill

JAKARTA (JP): A councilor says foreign wives of Indonesian men
are unlikely to be considered as heads of families in the bill on
foreigners tax.

Helmy AR Syihab, the chairman of Commission C for city
revenue, said that in the case of Indonesian men married to
foreign women, the head of the family is still the man.

"The women are subject to the taxes in their capacity as
wives, not heads of the family," he said.

"However, details like this will be ruled on in a
gubernatorial decree on the annual foreigners tax bill," Helmy
told The Jakarta Post yesterday. He could not say when the decree
would be issued.

Helmy was responding to inquiries on the foreigners tax rule,
which states that the head of the family and family members are
subject to taxes. The taxes will soon be increased by 500
percent.

A resident, T.D. Kosasih, said he had been told by employees
at the city's revenue agency that as his wife is a foreigner she
is considered the head of the family.

"In past years I always paid the annual foreigners tax for my
wife, since without a receipt for this payment my wife's stay
permit cannot be extended," Kosasih said earlier.

"However, a 500 percent increase in annual foreigners tax is a
heavy burden for me as a locally paid head of the family," he
said.

A source at the agency who requested anonymity assured that
foreign wives of local men will not be considered the head of the
family.

He could not estimate the number of Indonesian men married to
foreigners.

However Kosasih said his wife, Judith Kosasih, has always been
taxed as the head of a foreign family.

The new bill on annual foreigners tax was passed by the
council on Sept. 5 by the council. It will become effective after
approval from the home affairs ministry.

Councilors and officials said the increase in the annual
foreigners tax is to give a sense of fairness to local employees
who may have abilities similar to expatriates.

Another reason is to raise city revenue.

The increase is expected to bring in at least Rp 17.62 billion
(US$7.6 million) in revenue from taxes on about 45,800
expatriates living here.

The rule on the increase excludes a number of categories of
foreigners such as social workers and those on low salaries, but
no figures are mentioned.

The head of a foreign family will be charged an annual tax of
Rp 450,000, which was formerly Rp 90,000. Tax on a spouse is
being increased from Rp 60,000 to Rp 300,000. (anr)