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)