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).