Fiskal Tax & NPWP

Jun 26th, 2008, in Business & Economy, IM Posts, by

Rupiah The fiskal exit tax is to be abolished, for registered taxpayers, to encourage the payment of income tax.

From 1st January 2009 those with a tax-file number (NPWP, Nomor Pokok Wajib Pajak), and their dependents, will no longer be required to pay the 1 million rupiah fee upon leaving the country, called fiskal. From 1st January 2011 the "fiskal free" policy will be extended to all those travelling abroad, according to revisions to the Pajak Penghasilan (PPh) bill that have yet to be agreed upon by parliament.

Darmin Nasution
Darmin Nasution.

Darmin Nasution of the Tax Office, said to be a collector of interesting photos on the internet, says the two year delay in abolishing the fiscal tax entirely is to encourage people to get an NPWP, since most Indonesians do not have one and pay no income tax directly.

Darmin also says until now many people avoided paying fiskal because there were many categories of exemptions, and the planned changes were intended to simplify things.

The new policy of exemption for NPWP holders uses the concept of family/households, says 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 fiskal. Those over the age of 21 can continue to use their father's NPWP, provided they are still listed on his Family Card (kartu keluarga).

Darmin says there will be no loss of revenue for the state, except in the first year and quite the reverse in the medium term, because the shortfall from fiskal (in 2007 fiskal revenues were 2.5 trillion rupiah) will be made up in new income tax receipts. Currently there are around 6 million NPWP's issued, and of these about 4.8 million are held in the name of individuals, as opposed to companies and organisations. [1]


104 Comments on “Fiskal Tax & NPWP”

Pages: [1] 2 3 4 »

  1. avatar timdog says:
    June 26th, 2008 at 7:48 pm

    Good grief – it’s actually a good idea emenating from Indonesian government!
    What about foreigners resident in Indonesia? KITAS-holders already generate a fair dollop of income for the government thanks to the various costs and tax liabilities (usually met by their employers), so how about an exemption for them too?

  2. avatar sputjam says:
    June 26th, 2008 at 8:35 pm

    I thought brunei is a tax free haven. I was wrong.

  3. avatar Abdul Khalid al Jumhuri says:
    June 27th, 2008 at 3:15 am

    Good idea indeed! I hope that KITAS holders who have NPWP should be treated the same. This will incentivize all to declare income tax. The process to apply was not all that difficult, the same is the procedure to cancel when the Expats leave the country. I have done both procedures many times.

  4. avatar David says:
    June 27th, 2008 at 9:33 am

    I thought brunei is a tax free haven. I was wrong.

    Sputjam, are you just worried more Indonesians are going to come to Malaysia now? ;)

  5. avatar Achmad Sudarsono says:
    June 27th, 2008 at 9:39 am

    Interesting — so does that mean foreigners without an NPWP will get busted at the airport ? It’d be an easy way to do it…

  6. avatar Farah says:
    June 27th, 2008 at 11:36 am

    Well… its good, and hopely it will be true. To be honest i don’t really see where the fiskal money goes to (for tourism facility (street?)? or for airport?)
    But still went outside country from Batam or Pekan Baru would be my choice since years ago.. its FREE for me hehehehehe….

    Good idea once again.

  7. avatar kinch says:
    June 27th, 2008 at 11:50 am

    So that means I’ll be seeing you in SG this weekend, Farah? :D

  8. avatar Chris says:
    June 27th, 2008 at 11:35 pm

    according to revisions to the Pajak Penghasilan (PPh) bill that have yet to be agreed upon by parliament.

    In other words, it either won’t happen or won’t happen for a long time.

    Did DN say how the fiskal inspectors will be redeployed? Maybe move them to the Customs Office?

  9. avatar Farah says:
    June 30th, 2008 at 4:49 pm

    @ Kinch
    Sorry kinch, i am busy counting my coconut production per day, you should made appointment at least a month before ….. and i can’t even count up to 100 in english !!

    unless if anyone with good english here help me !

  10. avatar Rob says:
    August 25th, 2008 at 4:17 am

    Righteous Dude…

    It will happen. The RUU has been the subject of recent debate at the House of Representatives. Although not all issues have been resolved in terms of the provisions of the bill, it seems that the fiskal provisions are not problematic.

    The current plan should see the bill pass by the end of 2008 and therefore the fiskal provision could conceivably be implemented beginning in 2009.

    The provisions would apply to foreigners who have a NPWP. Most foreigners who are here working legally have a NPWP. The practicalities of proving this might be as simple as flipping out the KITAS at the airport or as most foreigners with a KITAS already know it might be cross-checked at the time you apply for an Exit-Entry Permit. Albeit I am guessing there will be specific implementing regulations issued to govern the procedures.

    The other issue is that no-one really knows where this fiskal tax money goes. In many ways it is similar to the USD 100 a month legally working foreigners pay to the government.

    My guess is what you make up for on the merry-go-round you will lose on the swing. Perhaps the government will just jack up the foreigner tax from USD 100 per month to USD 150 per month. For foreigners like me who on a good year might leave the country once maybe twice per year the idea of dumping the fiskal tax might not make so much sense to me if such a scenario was to play out. Just a thought.

    Achmad…

    Interesting — so does that mean foreigners without an NPWP will get busted at the airport ? It’d be an easy way to do it…

    Busted how? Tourists will not have a need for an NPWP. Those working illegally here might not have a KITAS so going through the airport they would appear to be nothing more than a tourist. Those that are working here with illegally obtained documents will be much more difficult to uncover, albeit not impossible. However, I would imagine the airport to be the least likely place they are going to be uncovered.

  11. avatar KZ says:
    October 2nd, 2008 at 2:29 pm

    For Indonesian but live overseas, if taking up loan from the bank in Indonesia, does anyone know if NPWP is necessary? I would assume you only pay your income tax from the country where your income is from?

  12. avatar AchmadSudarsono says:
    October 2nd, 2008 at 3:47 pm

    Hi Rob,

    There might, though, be some foreigners without NPWPs. Some might be afraid of deaing with the tax department. They might be in the sh*t if they don’t get one — an NPWP, that is.

  13. avatar Jhonny Andreas says:
    November 24th, 2008 at 4:04 pm

    A quick question… How about for those people that do not have to pay fiskal i.e. Batam or Bintan. So do they need to have NPWP as well to be exempted from fiskal tax when they go abroad? or the policy will still remain as whoever (with or without NPWP) depart from Batam will be exempted from Fiskal Tax.

    Anyone can help to answer my question?

    Thanks

  14. avatar dragonwall says:
    November 25th, 2008 at 11:45 pm

    N.P.W.P = Legalized Extortion and daylight robbery.

    (Iknow someone will rebutt this by saying every country an entity will need to have a tax ID number)

    Not in the case of Indonesia, at least to me.

    The fiskal is a nonsensical tax where the government tells the world they have the right to milk every cow that passes through Indonesia.

    I think every country in the world should impose such a tax law to milk every cow that passes through their country.!!!!!!!!!!!!!!

    Just imagine at least 10 to 20 million leaves Indonesia, those Indonesian passport holders and foreigners working in Indonesia. 1 million per head count means what, 10 to 20 trillion..wow seeing stars.

    These money should end up in the Trade and Tourism department but I suppose it will end up between couriers and immigration officials at the airport and exit point.

    We should all learn to milk the cow from people like Joop Ave, Yusril and Darmin Nasution.

    The US immigration charge a 200 SEVIS for exchange program, the Indonesian collect 100 each month for work permit and dependant holder and says it is for educating the Indonesian workers. My ass. It will also ends up in the pocket of people from Depnaker. Every single one of them.

    The department that has the most money to kerok from the public are Depnaker, Immigrasi, Pajak, Bea Cukai…

    CASH PAYABLE ON DEMAND more liquid than a bank. It is like minting money..

    I WONDER HOW THE INDONESIAN GOVERNMENT THINKS OF THAT..

    From there the Anggaran Tahunan juga disunat.. GIMANA RAKYAT GAK MISKIN….

    Merdeka Partai Perpajakan & BEA Cukai Indonesia, Merdeka Partai Imigrasi, Merdeka Partai Depnaker.. Mundurlah semua PKS, Golkar. PDI whatever..

  15. avatar Rachleong says:
    December 4th, 2008 at 6:12 pm

    I’m so surprised to hear that the fiskal is gonna shore up to 3 million rupiah next year. So tell me what’s the whole point in paying those tax while the airport, the air plane are all in SUCH condition?

  16. avatar dragonwall says:
    December 9th, 2008 at 6:44 am

    Well they called it their rights. It is their airport.

    It is like the ole days in chinese kungfu film.

    If you want to pass this road you have to leave your money behind.

    Usually in an airport when they make certain collection, forget what is hapenning in the US now, because you use their facilities like walking into a hotel. You could shop, eat drink and relax while waiting for a flight.

    Indonesia collect the fiscal is that because, if you can afford to travel, you have to pay. Especially with this smart ass Darmin Nasution. He is all about Hepeng with justifying the cause.
    Well obviously the DPR MPR members were all too heppy when hepeng is coming their way.

    People like him do no good for the country but instead close the door to progress and development in view of their current need (greed).

    I was wondering when then will there be someone who could help the Indonesian government implement something that is really meaningful and helpful to the country. In one way helping the country, her people and in another facilitating the visitors or user. Especially in Bali and other resort areas. They will show the public statistically that there are increase by including land travellers.

    Similarly to BI…dibuku memang cakap, semua beres tapi dalamnya kopong, gak ada isinya.

    What good will that be to Indonesia?

  17. avatar Purba Negoro says:
    December 9th, 2008 at 11:05 am

    Dragonwall-
    if you and your Chinese friends are too stingy to pay your correct and legal taxation obligations- exactly the same as Singapore, Hong Kong and CHina do not come to Indonesia

    This is one of the very few taxes the Chinese, and other illegal immigrants cannot bribe or bluff their way out of- and hence they resent the concept of paying their way in a nation they are more happy squatting in illegally.

    If you have the means to afford an airplane ticket- you have the means to afford the tiny amount of Tax- 1 million Rupiah.

    If you do not have 1 million rupiah or even 3 million to spare- you should consider walking.
    Obviously flying is above your means.

    We do not need such low grade parasites who feel they are somehow above the law of the State.

  18. avatar Achmad Sudarsono says:
    December 9th, 2008 at 6:27 pm

    So Purba,

    You think the law applies equally to all ?

    Is that right ?

    To all, regardless of race, religion, or social class, in line with Panca Sila and the UUD ?

  19. avatar dragonwall says:
    December 10th, 2008 at 1:07 am

    You are back whining and sighing about others being stingy with your high society stuffs.

    What is the Fiscal for? Paid to who? Who ends up getting the money. And if you think

    cannot bribe or bluff their way out

    then sorry to say people like you sucks. Ignorant.

    And like what Achmad said

    You think the law applies equally to all ?

    I doubted many would say it is, but you would say it is.

    You may have been blogging based on your knowledge acquired through some form of media, but I am referring through personal experience.

    I have seen with my own very eyes that people whsipering with immigration people and they made some kind of arrangement, chinese and pris alike.

    So then it would be better off with the earlier 500,000 than now!

    The main criteria in question is that, what would they achieve the higher they raise the fiscal? The pockets of these civil servants? The people? Or the government?

    I don’t go to Indonesia anymore except my wife travels a bit. So does that really bothers me? Damn it, you are right it doesn’t. So what does that bores down to?

    Write something meaningful instead behaving like a f**k**ng idiot.

    So what is the chinese saying for this?

  20. avatar Purba NEgoro says:
    December 10th, 2008 at 12:41 pm

    Achmad-
    Thank-you for asking.

    Yes- you are correct- the fiscal is applied equally- across race, rank and class.
    I routinely queue beside every kind of traveller- white, black, poor and rich, indigenous and not.

    The myth of fiscal victimization is perpetuated by those who resent ever fairly paying their way in society- and on examination of evidence- it is easily proven to be myth and innuendo.

    If you occasionally see people advancing without paying- they have a prepaid arrangement via prior arrangement with Angkasa.
    My company has such an arrangement- and I pay our official assistant at the flight ounter- and I can go straight to the lounge- the rest is taken care of by him- who has my passports and tickets.
    I am occasionally been stopped by some suspicious officials- easily resolved by showing mutual civility and showing purchase receipt.

    Any extra fees are penalties for legal infractions – which most are ignorant of- although perhaps the communication skills of our officials could be improved.

    It is our patriotic duty as Indonesian citizen to pay fair tax burden. I am not exempt and have no expectation that I should.

    For the poorer traveler- yes this is one of the very few taxes they pay as well- considering their consumption is minimal and their salary is likely exempt.

    If some are adversely effected by Fisccal Tacx responsibilities- then flight is beyond their means.
    They would be better served to avoid such unaffordable expenses as flying and instead take the affordable realistic alternative of a boat or train.

    Dragonwall-

    It is neither the privilege nor prerogative of unwanted illegal squatters to question the legitimacy of our sovereign taxation system nor the end destination of any revenue raised.

    All you need to concern yourself with is obeying the law- not questioning its legitimacy.

    Suharto era is over, and the illegal occupant Chinese are financially superfluous and will no longer receive their former favourable treatment.

    Instead Chinese are now treated like any other occupant illegal or not and thus expected to pay their way in society.
    As such the Chinese resent greatly having to once pay their fair burden, formerly accustomed to a cossetted and cushioned life under Suharto.

    If a Western country was to euphemistcially label a fiscal as “carbon offset tax”- I doubt you would whine so loudly and indeed onanise wantonly over whiteys wisdom.

    If you have such a problem obeying the law- then do not annoy us with your unwanted presence.
    Otherwise- be man enough to shoulder your civic duty and pay your fair tax burden.

  21. avatar Ross says:
    December 10th, 2008 at 1:30 pm

    I heard if you apply for fiscal exemption under this new regime, you automatically get audited by the tax ministry. Nobody seems to know much about the implications of NPWP and the realted Sunset Policy, tho a couple of nice wee gals at Ratu Plaza were handing out leaflets on it today.
    Can any expert enlighten us?

  22. avatar Purba Negoro says:
    December 10th, 2008 at 1:49 pm

    Ross
    correct.
    If you claim fiscal tax as a refund- you will be audited by the State to ensure you are not being fraudulent.

    This is standard procedure in any nation.

    I am aware in the UK and Australia they have very serious problems with fraudulent benefits claims and inadequate means testing.

    Ratu Plaza- I wil check it out. I am sending a secretary right now to pick me up a flyer.

  23. avatar Achmad Sudarsono says:
    December 10th, 2008 at 2:57 pm

    PN,

    If the law does apply equally to all, then great.

    You just seem to single out Indonesian Chinese. I’m willing to bet dollars to dodol the well-heeled and wealthy Pribumi are no better.

    What do you think ?

  24. avatar dragonwall says:
    December 11th, 2008 at 12:38 am

    Now it is back to school.

    All you need to concern yourself with is obeying the law- not questioning its legitimacy

    I suppose this is the IM blog and you seemed to speak as though you represent the authority or the government and not one is allowed to question its legitimacy. Yeah right..some of your relatives are in the immigration or from the pajak that every one of them being milked should not ask but to pay..and

    Suharto era is over, and the illegal occupant Chinese are financially superfluous and will no longer receive their former favourable treatment.

    What has that got to do with the issue. You really think that during the suharto era everyone does that?

    I suppose you didn’t see this coming

    You just seem to single out Indonesian Chinese. I’m willing to bet dollars to dodol the well-heeled and wealthy Pribumi are no better.

    Right he seems to be doing this throughout his comments and I also think it is because he thinks he speaks so great about himself and that he is going to get his secretary to pick up the leaflet and continue

    whine so loudly and indeed onanise wantonly

    that I like to belief that he could be part of those that milks the cow.

    You should apply, but I doubted much you will be accepted, as a speech writer for the Sekneg and let us see how you whine and sigh with your continuous detestation of the Chinese Indonesians.

    You have been proven over and over again to be a Chinese hater.

    I have a suggestion for you. You should be raising a new flag, a nationalist flag like you claimed yourself to be and then go around like those FPI buffons looking for bananas.

  25. avatar fullmoonflower says:
    December 11th, 2008 at 3:48 am

    *sigh*

    Sunset Policy will be end by Dec 31st, 2008 for the Tax Payers who were registered before 2008, and will be end by March 31st, 2009 for the Tax Payers who were registered in 2008.
    Just got home 2 hours ago from Pasar Baru, explain about Sunset Policy to my clients, an Indian Clan (whole of their family), especially about how to maintain their un-reported assets to be reported in revised SPT for Sunset Policy so that they won’t be trapped in tax investigation, because Sunset Policy is not same with Tax Amnesthy.
    Well, it’s ok. It’s about strategy. Because not all people can do it, even some tax consultants. Some of this clan members already have tax consultant, but their consultant don’t know how to maintain it as well. They only told them to put this and that, but I can see they will be trapped someday.

    Tomorrow and day after tomorrow, I have to teach all employees of my company in Jakarta Branches about how to fill SPT Form for their personal tax report…
    Actually, to fill SPT Form is very easy. They can be simply open http://www.pajak.go.id and follow the instruction :(
    (Indon… malas… gaptek… maunya mengandalkan orang lain… Duh, so ashamed.. :oops:)
    And one thing which made me feel that I will be going to be crazy is : they thought that the benefit of having an NPWP is they will get bigger loan and the process will be easier… (gubrakkk…!! duh, konsumtif banget sih :-?)
    And maybe I have to go to out of town, visit 10 other branches in Aceh, Batam, Pekanbaru, Medan, Palembang, Balikpapan, Surabaya, Makassar, Bali, and Timika… only to tell the same thing, within 2 weeks… :(

    Oh NPWP Baru… NPWP Baru…

  26. avatar Achmad Sudarsono says:
    December 11th, 2008 at 4:08 pm

    Fullmoonflower, Seksi Mr. Patoengs,

    Anyway to get in touch with Fullmoonflower for legitimate business reasons ?

  27. avatar fullmoonflower says:
    December 11th, 2008 at 4:28 pm

    Pakde Achmad…

    here

  28. avatar Achmad Sudarsono says:
    December 11th, 2008 at 5:11 pm

    Ibu Fullmoonflower Yth,

    But say, theoretically, (;-))), if one of my fans wanted to get in touch with you, how would they do it ??

    Achmad.

  29. avatar fullmoonflower says:
    December 11th, 2008 at 5:12 pm

    UU No. 36/2008 :

    “Any foreigners or foreign companies which have warehouse in Indonesia (rented or owned) they must be registered as Indonesian Taxpayer and must have Tax Identity Card (NPWP) – even it’s only a temporary warehouse before shipping”

    *forget which article… just remember, got a good question about it from my client just now… hmmm.. :roll: will continue this posting tonight, when I got home…

    hmph…

    don’t know it is a good news or bad news… :roll:

    will find out tonight…

  30. avatar fullmoonflower says:
    December 11th, 2008 at 5:18 pm

    @ Pakde Achmad

    they can simply write a Personal Message to my box in Forums

    here

    @ Koh Patung
    would you like to delete my first posting (the posting before pakde Achmad’s posting)? aduh, someone click my mouse accidentally, while I editing my posting :(

    thank you very much

Pages: [1] 2 3 4 »



Your view on “Fiskal Tax & NPWP” :


RSS
RSS feed
Email

Copyright Indonesia Matters 2006-14
Privacy Policy | Terms of Use | Contact