ONEWAY SMARTAX INDONESIA
TAXFACT February 2009 Edition
Purwoko Ary Wibowo - Tax Director purwoko@smartaxindonesia.com
Office I Mayapada Tower, 11th Floor Jl. Jend. Sudirman Kav. 28 Jakarta 12920, Indonesia Phone: (62-21) 5289 7484 Fax : (62-21) 5289 7399 Office II c.o. Infinity Capital Bapindo Plaza, Citibank Tower, 27th Fl. Jl. Jend. Sudirman Kav. 54-55 Jakarta 12920, Indonesia Phone: (62-21) 526 0808 Fax : (62-21) 526 6006
DIRECTORATE GENERAL OF TAXATION REGULATION (PER) NO. PER53/PJ/2008 Dated on 31 December 2008 About Fiscal Tax Payment and Administration Exemption Procedure for Every Taxpayer going Overseas PER NO. PER – 1/PJ/2009 Dated on 09 January 2009 About the Amendment of PER NO. PER-53/PJ/2008 About Fiscal Tax Payment and Administration Exemption Procedure for Every Taxpayer going Overseas PER – 2/PJ/2009 Dated on 12 January 2009 Income Tax Treatment for I n d o n e s i a n Wo rke r s wo rk i n g O ve r s e a s
MINISTER OF FINANCE REGULATION (PMK) NO.210/PMK.03/2008Dated on 11 December 2008 The Minister of Finance Decree Fifth Amendment about The Nature, Amount to be Collected, The Payment, Report Procedure and The Appointment of Entity to Collect Income Tax Artcle 22 PMK No. 244/PMK.03/2008 dated on 31 December 2008 about Other Services as mention in Article 23 (1) (C) Number 2 of Income Tax Law No.36 Year 2008
PMK NO. 250/PMK.03/2008 dated on 31 December 2008 about Occupational Allowance or Pension Allowance that could be treated as expense for Permanent and Pension Employee.
INSIDE TAXFACT
PMK NO. 251/PMK.03/2008 dated on 31 December 2008 about Article 23 Income Tax Exemption for Income Related with Financial Service Conducted by Entity That Have Loan or Funding Distribution Functionality. PMK NO. 253/PMK.03/2008 dated on 31 December 2008 about Certain Corporate Taxpayer appointed as Income Tax Collector from the Buyers related with the Sales of Luxury Goods
DIRECTORATE GENERAL OF TAXATION REGULATION (PER) NO. PER-53/PJ/2008 Dated on 31 December 2008 About Fiscal Tax Payment and Administration Exemption Procedure for Every Taxpayer going overseas According to this regulation, every taxpayer going overseas should pay their fiscal tax exit; Further the taxpayer should meet the following requirement to pay their fiscal tax exit: 1.21 Years of Age; 2.No Tax Identification Number (NPWP); The Requirement to pay fiscal tax exit would also valid for the taxpayer Family member as follow: 1.Legal* Husband or Wife; 2.Legal* Blood Related Family (Vertically); 3.Legal *Step Children (All the Cost of Living guaranteed by the taxpayer) *Required document based on the LAW The Amount of Fiscal Tax Exit should be paid for one trip are as follows: 1.By Air would cost Rp.2.500.000,-/ person 2.By Land Rp.1.000.000,-/ person All Tax payer could pay the said fiscal tax exit using Fiscal Tax Exit Payment Receipt (TBPFLN); The said TBPFLN could be paid through: 1.Bank appointed by the Tax Office; 2.Fiscal Tax Executor Unit; 3.Other Places appointed by the Tax Office. The payment of fiscal tax exit could be credited; All Tax Payer could refund the payment of fiscal tax exit if the tax payer canceled its trip to overseas as long as the said fiscal tax exit has already been paid. According to this regulation, every taxpayer going overseas are from exempted fiscal tax exit as long as they could met the following criteria; ? Foreigners individual who does not reside in Indonesia or is present in Indonesia for not more than 183 (one hundred and eighty-three) days within any 12 (twelve) month period so that they are not subject to Indonesian tax and hold Temporary VISA or VISA; ? Diplomatic Individual and their family members as long as they are not receiving any income in Indonesia.
List of Individual who are exempted from fiscal tax exit as long as they could met the following criteria; 1.Indonesian Citizens who is resides in foreign country and could provide: •Green card, •Identity card, •Student card of the said country; •Offshore Address authentification by Indonesian Embassy in the offshore country; 2.If that person in reality lived and resides in Indonesia more than 183 days in in 12 month period, then the said person should pay fiscal tax exit; 3.Diplomatic Individual and their family members as mention in Minister of Finance decree also as long as they are not receiving any income in Indonesia; 4.Diplomatic Individual and their family members as mention in Minister of Finance decree also as long as they are not receiving any income in Indonesia; 5.Congregation pilgrim; 6.Individual who is traveling through a cross – border travels in the Indonesian Territory; 7.Indonesian Labor Worker who hold Certificate and Minister of Labor and Transmigration; 8.Expatriate Individual (Works in the field of science research and culture, technical cooperation, and religious event) in Indonesia who do not receive any income from Indonesia and deliver a statement letter that states the said person do not receive any income from Indonesia together with an approval certificate issued by the related Minister Department; 9.Foreign Students who resides in Indonesia in relation with study with the recommendation from their related offshore university, deliver a statement letter that states the said foreign students do not receive any income from Indonesia. This Exemption would not valid for their family members; 10.Expatriate who work in Bintan, Batam , and Karimun Island as long the said expatriate has been imposed an income tax by the employer and deliver the income tax return that has been authorized by the batam, tanjung pinang or any appointed tax office; 11.Disability person including one partner that has been approved by the minister of health; 12.Art, Cultural, Sport, Religious Mission Members on behalf of Indonesian Government and hold a certificate from the related minister; 13.Student Exchange Program.
Fiscal Tax Exit Exemption Procedure: 1.21 Years Old NPWP holder could be exempted from fiscal tax exit through the validation process conducted by the UPFLN as long as the tax payer NPWP has been registered 3 days in the taxpayer registered tax office before the departure date; 2. Family Members who do not have any NPWP numbers could be exempted from fiscal tax exit through the validation process conducted by the UPFLN as long as the tax payer NPWP family guarantor has been registered 3 days in the taxpayer registered tax office before the departure date and provide the following documents: • Legal Family Certificate; • Statement Letter that state the taxpayer NPWP holder is the guarantor of the family members life of leaving as stated in the family certificate; 3. Fiscal Tax Exit Exemption for No. 1 – 7 could be exempted as long as they could met the required criteria and the said exemption could be obtain directly through the validation process conducted by the UPFLN as long as the tax payer NPWP family guarantor has been registered in the taxpayer registered tax office; 4. Fiscal Tax Exit Exemption for No. 8 – 13 could be exempted as long as they could met the required criteria and the said exemption could be obtain directly through Fiscal Tax Exit Exemption Letter (SKBFLN) issued by the UPFLN or appointed tax office;
PER NO. PER – 1/PJ/2009 Dated on 09 January 2009 About the Amendment of PER NO. PER-53/PJ/2008 about Fiscal Tax Payment and Administration Exemption Procedure for Every Taxpayer going overseas This Regulation issued in order to amend the previous PER53/PJ/2008 where this regulation is amending Article 8 with the addition of foreign citizens (WNA) who do not have any family certificate or the family members name not mention in the family certificate then the said foreign citizens should deliver a foreign family member list letter or other document that could proof related family status issued by Authorized Institutions.
PER – 2/PJ/2009 Dated on 12 January 2009 Income Tax Treatment for Indonesian Workers working Overseas
MINISTER OF FINANCE REGULATION (PMK) NO.210/PMK.03/2008Dated on 11 December 2008 The Minister of Finance Decree Fifth Amendment about The Nature, Amount to be Collected, The Payment, Report Procedure and The Appointment of Entity to Collect Income Tax Article 22 This Regulation would like to explain that Entity appointed to Collect Income Tax Article 22 are as follows: 1.Devisa Bank, Directorate General of Customs and Importation; 2.Directorate General of Treasury; State Treasury who purchase goods; 3.State Owned Entity which purchase goods where the fund come from State Budget; 4.Bank of Indonesia; PT. Persusahaan Pengelola Aset;Perum Badan Urusan Logistik (Bulog);PT.Telekomunikasi Indonesia (TELKOM); 5.PT. Perusahaan Listrik Negara (PLN);PT. Garuda Indonesia;PT. Indosat; 6.PT. Krakatau Steel; PT. Pertamina; State Owned Bank which purchase goods where the fund come from State Budget or not; 7.Entity that appointed by the Directorate General of Taxation andworks in the field of cementing; paper; steel; automotive related to its local sells; 8.Producer or Importer of Oil, Gas, Lubricant related to Oil, Gas and Lubcricant Sells; 9.Industrial and Exporter appointed by the Directorate General of Taxation and works in Forestry, Farming, Plantation; Fishery related to the purchase of industrial and export material from trading collector;
This Regulation would like to explain that Income Tax would not be impose to every Indonesian Citizen Lives Offshore more than 183 days and do not receive any income from Indonesia.
PMK No. 244/PMK.03/2008 dated on 31 December 2008 PMK NO. 250/PMK.03/2008 dated on 31 December 2008 about about Other Services as mention in Article 23 (1) (C) Number Occupational Allowance or Pension Allowance that could be treated 2 o f I n c o m e T a x L a w N o . 3 6 Y e a r 2 0 0 8 as expense for Permanent and Pension Employee.
This Regulation would like to state the income tax rate would be 2% from the gross income not including Value Added Tax for other services related to Article 23 (1) (c) Number 2 of Income Tax Law No. 36 Year 2008; 1.The Regulation also states that if the service seller does not have any NPWP then the buyer of the service should impose 100% higher from the normal Rate of Article 23 Income Tax; 2.There is no additional or deduction on the other service item; 3.This Regulation is a positive list regulation.
There are no changes related with the rate used in calculating the amount of Occupational Allowance. The regulation uses the same rate which is 5% from the regular or irregular income, which the amount of Occupational Allowance would be Rp.6mio per year or Rp.500.000 per month (at maximum). On the other hand, The amount of Pension allowance would be Rp.2,4mio per year or Rp.200.000 per month (at maximum).
PMK NO. 253/PMK.03/2008 dated on 31 December 2008 PMK NO. 251/PMK.03/2008 dated on 31 December 2008 about about Certain Corporate Taxpayer appointed as Income Tax Article 23 Income Tax Exemption for Income Related with Financial Service Conducted by Entity That Have Loan or Collector from the Buyers related with the Sales of Luxury Funding Distribution Functionality. Goods This Regulation states that certain corporate tax payers should This Regulation states that Income Tax Article 23 would be exempted impose and collect income tax from the buyers related with the for Income related from financial service industries that have loan or sales of luxury goods. They should impose and collect an income funding functionality. Article 1 (2) of this regulation mention that income related from taxpayer from the buyers as long as the corporate tax payers sell financial service includes interest or other fees given in relation not the following luxury goods: only with load or funding distribution but also syariah base funding. 1. Private Airplane (Price > Rp.20bio); Further, the government also added more Article 23 Income Tax 2. Cruise Ship (Price > Rp.10bio); Exemption entity category as follows: 3. Houses ( > 500 m2) including Land (Price > Rp.10bio); 1. Non – Bank Funding or Loan Company; 4. Condominium, Apartment (> 400 m2) (Price > Rp.10bio); 2. Non – Bank Financial Institutions (Hold MOF Approval); 5. 2 wheel and 4 wheel Automotive Vehicles with maximum 3. Loan or Funding State Owned Company for Small and Medium capacity less than 10 people in the shape of sedan, jeep, Sized Company SUV, MPV, Minibus and any other related vehicles (Cylinder Capacity > 3000 cc and Price > Rp.5 bio). This Regulation would be effective in January 01, 2009. The Corporate Tax payer should impose and collect an income tax on every sale of luxury goods from the buyers by the time sales incurred. The Income Tax rate amounting to 5% should be imposed from gross sales before value added tax and sales of luxury goods tax. Further the buyer could treat the collected income tax by the seller as a tax credit on its annual individual income tax.This Regulation would be effective in January 01, 2009.