Tax Payers need no longer pay Exit Tax
By Linda RawinDecember 28th 2008
Previously an Indonesian individual taxpayer or Expatriate resident, traveling abroad had to pay an exit tax at each counter point of departure from Indonesia through land, sea, and air. This tax must be paid through an Exit Tax Form and payments be made at the post office or an authorized bank at the exit points out of Indonesia.
It was announce from the department of taxation that a new ruling has been past that as of January 1st the first 2009, Indonesians leaving Indonesia with a tax-file number or NPWP ( Nomor Pokok Wajib Pajak), their dependents, will no longer be required to pay the 1 million rupiah fee upon leaving the country.
Darmin Nasution Director General for tax appointed in 2006, in a bid to increase revenues, said the new policy in abolishing the fiscal tax “is to encourage people to get an NPWP, since most Indonesians do not have one and pay no income tax directly.” “The new policy of exemption for NPWP holders uses the concept of family/households, said Darmin, so that dependents of NPWP holders, such as children 21 and under, and wives, may use the head of the household’s tax file number to gain an exemption from paying fiscal:” Children over the age of 21 can use their father’s NPWP, provided they are still listed on the family Card or KK-kartu keluarga. However, it was also said that those who did not have a registered tax number would be required to pay the exit or fiska fees, double in amount.
- Editorial: Incentives for taxpayers-Jakarta Post
- Indonesia collects more tax-Reuters
- Taxation of expatriate working in Indonesia-PDF