The Indonesian personal taxation system is based upon a person’s worldwide income, not just Indonesian income.
Worldwide income includes:
- Any salary paid to you for your current position, whether it be onshore or offshore
- Dividend and interest income, both onshore and offshore
- Rental income both onshore and offshore
- Capital gains from sale of property, both offshore and onshore
Considering the distinctiveness of personal tax regulation in Indonesia, foreign residents of Indonesia need to pay special attention to their tax compliance. It is neither difficult nor onerous, but it must be done.
The Tax Office is increasingly vigilant in requiring foreigners to report their income, especially where the foreigner is present in Indonesia for more than 183 days per year, OR where the foreigner is tax registered in Indonesia by virtue of their residence status (KITAS).
The Indonesian Tax Office has changed some regulations to respond COVID-19 outbreak which impact significantly to personal income tax, such as personal tax reporting relaxation, decrease of personal tax rate and any other significant adjustments.
To respond this unprecedented situation, our accountancy and taxation services have been comprehensively adapted to these changes, for both new and old clients. We are ready to help.