PT Great Performance Tax is here to assist taxpayers in completing their various tax affairs. This service also applies to foreign nationals (WNA) who have tax obligations in Indonesia because they earn income in the country.
Because they receive income from activities in Indonesia, foreigners are also required to comply with applicable tax regulations, including depositing and reporting their taxes. So, what is the complete procedure? Check out the following explanation.
Provision of foreigners as taxpayers
Foreigners who work or run a business in Indonesia have the same obligations as Indonesian citizens (WNI) in terms of reporting and paying taxes on their income. This is in line with the provisions of Law No. 36 of 2008 on Income Tax (PPh), which is the Fourth Amendment of Law No. 7 of 1983.
Foreigners who qualify as domestic tax subjects are required to pay and report Income Tax in Indonesia. Criteria foreigners who are classified as subjects of Domestic Taxes (SPDN) include:
- Living or staying in Indonesia;
- Have been in Indonesia for more than 183 days within 12 months;
- Have the intention to settle in Indonesia.
For foreigners who have SPDN status and will leave Indonesia permanently, annual SPT reporting must still be done at the latest before departure.
Online foreign tax return reporting requirements
Foreigners who work in Indonesia and have been the subject of domestic taxes can report the tax return online through the official website of the Directorate General of taxes. The conditions that need to be met are as follows:
- Have a Taxpayer Identification Number (TIN).
- To obtain a tin, foreigners must attach a passport and KITAS (limited Residence Permit Card) or KITAP (Permanent Residence Permit Card). If you work as a freelancer or run a private business, then you will also need supporting documents such as a business license or a certificate of business location from local government officials.
- Create an account on the Tax e-Reg website.
- Access the email to click on the account activation link sent by the Tax e-Reg system.
- Fill in the data form and complete the required documents requested in the e-Reg.
In addition, foreigners must also have and activate EFIN (Electronic Filing Identification Number). If you are still confused in the tax return reporting process, foreigners are advised to consult PT Great Performance Tax to get the right guidance and assistance