Fiskal Tax & NPWP

Jun 26th, 2008, in Business & Economy, 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. antara


104 Comments on “Fiskal Tax & NPWP”

  1. avatar Raden says:

    PN emotionally said : 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

    PN, pls calm down, can’t blame on Dragonwall.
    Do you know why you will always take side on Hamas who live in Gaza ? that is exactly like the Dragon who live in Indonesia … he maybe sick & tired that he never get equal rights from gov’t of Indonesia. Koh Dragon may share the feeling like how sick is the Hamas members living under pressure from Israelis authority

  2. avatar superciliousme says:

    DXP said: But if you are a Tionghoa citizen, then you may find the flip side of story as you have no visibility on what gov’t of Indon can offer your children for those lucrative education segments. You will end-up enrolling your children into top private universities like Trisakti Jkt, Petra Sby, SatyaWacana Salatiga, etc with zero gov’t subsidies, those private universities running the education like a hell and they have to charge premium without guarantee of the education quality as par to international standard.

    Call me naive but lots of my school friends (Indonesian Chinese) go to ITB and UI, taking medical course, chem engineering, psychology etc etc… They’ve all been through the top SMU swasta and were apparently good enough to end up in the top government universities. And of course there are those who go to the top private universities too. Conversely I have a Javanese friend who went did well in a top SMU negeri, but I think she couldn’t make it to UI medical course, so she ended up in a private university. Of course I also have other pribumi friends who went to top SMU negeri and ended up in UI etc..

    My point is let’s not be too cynical. Obviously there have been plenty discrimination in the past, but things are improving now. And even if you have the ‘status disamakan’ thing, internationally I don’t think it’s an issue since people overseas don’t even know what that means.

    my answer : it depends on what is your race ?
    If you are Javanese or the so called the pribumi with Islam as your religion by & large, then your assumption is wrong. Because muslim pribumi is Indonesian citizen with 1st rank in society.

    As for this, I suppose the previous poster may refer to some other benefits such as a more solid and realistic pension plan, higher living standards, internationally-acclaimed education system & standards, etc..

    Cos even if you classify people into 1st and 2nd class citizens, just look at the current living standards in Indonesia. When you are a university graduate, can you earn a salary enough to start saving & say.. buy a decent house in the near future? I don’t think so. How about pensions? Can the average person say he can rely on his pension alone after retirement? How about medical & health benefits that employees get? Or insurance coverage? Or paid maternity leave, child-care benefits, or support for elderly parents? How about the infrastructure? These things may exist in Indonesia, but the sum of money or coverage involved may be far from adequate. So it doesn’t matter whether you’re a first class citizen or not..

  3. avatar JJ says:

    I agree with Superciliousme.
    I am not a pribumi and I have lived in Indo, Singapore and other countries before. I dont dispute that the quality of life in certain countries are better (better pension, health care, education,etc.). For example, it took me quite some times (through back and fro correspondences with the Institute of CA in Australia) to explain abt every subject that I learnt while I was in Trisakti and trisakti akuntansi had been “disamakan” long long time ago..The lack of accreditation by foreign universitites is a real issue. However, once I passed through the Australian accreditation, it didnt take me long to apply for another designation in other countries.

    I enjoy this forum for its intellectual contents and is for people who would like to seek clarification abt the sunset policy. Let’s not turn it into a polical forum and let’s respect other users of this forum.( i believe there areother forums where people can bash each other for their political views).

    Rgds,

  4. avatar DXP says:

    I agree with Superciliousme.
    I am not a pribumi and I have lived in Indo, Singapore and other countries before.

    ? ? ?
    agree or disagree is very much depend on your background, the way you currently earn your money, your income pattern, your halal or non halal incoming money to your bank account.
    I mean it, the more non halal money you earned into your bank account, you will tend to affraid losing your citizenship of INdonesia, trust me … because only in Indonesia you can do more hanky panky matters … the problem if you are not ‘kebagian’ then you fail to see the benefits of how beautiful is Indonesia

  5. avatar superciliousme says:

    DXP said: I mean it, the more non halal money you earned into your bank account, you will tend to affraid losing your citizenship of INdonesia, trust me …because only in Indonesia you can do more hanky panky matters … the problem if you are not ‘kebagian’ then you fail to see the benefits of how beautiful is Indonesia

    all I can say is… ignorance is bliss =)

    … then again.. if the said person has so much money (non halal or otherwise) and Indonesia is as such, then what has he/she got to be afraid of?

    didn’t you say something about UUD? *oops*

  6. avatar JJ says:

    I am actually waiting for anyone to share their thoughts abt my initial question abt the sunset policy,ie. if you live and work overseas and do not have any income generated in Indonesia, there is not really a benefit in applying for an NPWP. I am not concerned abt the fiscal tax of Rp 1 or 3 million to travel overseas as I am exempted (4 visits to Indo a year). I own a condo in Jakarta. If I sell my condo, it is subject to a final PPH tax whether or not I have an NPWP. I am not sure if there is a concept of capital gain tax in Indonesia which requires me to report it through my income tax return. ( I presume the answer is No, because if Yes, that means I got taxed twice..the final PPH tax of 0.5% of sales price , plus tax on the capital gain…that is a double taxation). Sounds like it is quite a different tax regime from the one in Aussie, Singapore or North America.

    Any thoughts?

  7. avatar superciliousme says:

    to JJ:

    well I’m not sure which country you reside in, but for example in Singapore’s case, the 4 times a year fiscal exemptions that PR holders were given, had expired by end of 2008. So that will be my only reason for applying for NPWP as I also do not have any income generated in Indonesia, nor do I reside there for more than 183 days. hey in fact I think we’re in a very similar position. if you saw my earlier posts, I asked a very similar question too with the property ownership and all.. 🙂

  8. avatar dxp says:

    JJ & Supersiluman,
    when you surrender your citizenship for Singaporean, all your problems are automatically solved.
    DXP know what is the best for people like you

  9. avatar superciliousme says:

    dxp Says:
    January 7th, 2009 at 11:26 pm

    JJ & Supersiluman,
    when you surrender your citizenship for Singaporean, all your problems are automatically solved.
    DXP know what is the best for people like you

    And now we’re down to name-calling eh? I’m impressed… 😉

    of course you’ll always know what’s best for anyone.. no one will doubt you there for one second.. perhaps you’ve also surrendered your Indonesian citizenship? I suppose the word ‘supercilious’ will be more apt for you (and I thought I am!) 🙂

  10. avatar Ross says:

    Interesting question for all you tax-number-knowledgable types.
    I met a friend at lunchtime today whose expat staff have all got NPWPs, which are all grey. At another place I’m familiar with, everybody, expat or local, has been given yellow cards. My friend says expats MUST have grey.
    What is the real story?

  11. avatar JJ says:

    Superciliousme,
    Thanks for the info. I guess I haven’t been home for quite some times and didnt even know abt the revocation of the fiscal exemption. I didnt know you posted a similar question before. There are way too many irrelevant postings in this forum that it is very easy to miss some postings.

    I think i will choose not to apply for the NPWP at this point of time. Fiscal tax exemption is not a big deal. I am not paying any personal income tax in Indonesia anyway as I am an overseas resident and I do not generate any income from my property in Indonesia. If i ever sell my property, i will pay the final sales tax anyway.

    As an NPWP holder, I need to file a NIL tax return and to me that is an unnecessary admin burdensome. Late in tax filing will attract tax penalty. In my view, not having an NPWP is not a criminal act as long as you dont owe any tax money to the authority.

  12. avatar dragonwall says:

    Try to figure out if one reports NIL income tax then why are they implementing these Laws?

    Should send someone to check if the bank account of Armin Nasution and the rest of those pople in the tax office had gone fatter.

    10 – 15 years ago those laws were not implemented those guys at the tax office were having fun time trying to dispose off their wealth. With this it must be harvesting time ready for migration.

    Did someone bother to check if those guys like BJ Habibie hed his accounts checked to see how the Germans have been camouflaging his wealth. This is one thing I am sure they overlook to get those wealth stolen from the Indonesian Government recovered.

    I guess those Helmet Dis and Hellmut Dad may have a fair share of his conspiracy.

    I think the tax office failed to check the returns filed by his son being a contractor for IPTN. They had burn a big hole in the government’s bank account so it is about time to make some recovery.

    Imagine a bolt and nuts bubut di Indonesia cause thousands of dollars. No wonder the earlier version of those aircraft didn’t fly that well. Lack of oli (pelicin).

    Interesting don’t they.

  13. avatar JJ says:

    I suspect the government is in the process of implementing a more sophisticated IT system that can do electronic tax audit.
    This has been implemented in countries like Canada, Singapore and US. The computer system is able to track what you filed historically and any tax officer can e.g. search for the news on the newspaper re. how much you make from selling a company and get the computer to do a quick math. If the numbers do not gel, the computer will kick out a tax assessment notice to you and you will be requested to submit supporting documents to back your tax returns.
    Personal tax returns are less subject to scrutiny, unlike the corporate ones.

    Rgds,

  14. avatar dxp says:

    the government is in the process of implementing a more sophisticated IT system that can do electronic tax audit

    Indon tax dept is wasting money on investing new IT system. After all they can discriminately follow up the tax report anomaly.

  15. avatar baliaussie says:

    Hi I am confused about “Fiskal Tax”.
    My husband holds an Indonesian Passport and lives in Australia (Australian address in passport) With the new Fiskal how many times a year is he allowed t travel to Indonesia without paying Fiskal ? We don’t have a business or receive any income from there.
    Thanks in advance

  16. avatar JJ says:

    baliaussie

    Your husband’s situation is exactly the same as mine.
    One of the postings from superciliousme said that “..well I’m not sure which country you reside in, but for example in Singapore’s case, the 4 times a year fiscal exemptions that PR holders were given, had expired by end of 2008.”
    I presume that to mean: no more fiscal exemption for indonesians who reside in overseas.

    Rgds,

  17. avatar Pakmantri says:

    @ JJ:

    One of the postings from superciliousme said that “..well I’m not sure which country you reside in, but for example in Singapore’s case, the 4 times a year fiscal exemptions that PR holders were given, had expired by end of 2008.”
    I presume that to mean: no more fiscal exemption for indonesians who reside in overseas.

    I believe that is not true, this peraturan pajak (KEPUTUSAN DIREKTUR JENDERAL PAJAK
    NOMOR:KEP-37/PJ./2001) is still valid, :

    15. Warga Negara Indonesia yang bertempat tinggal tetap di luar negeri yang memiliki tanda pengenal resmi sebagai penduduk negeri tersebut dan tidak menerima atau memperoleh penghasilan dari Indonesia, sepanjang berada di Indonesia tidak lebih dari 183 (seratus delapan puluh tiga) hari dalam jangka waktu 12 (dua belas) bulan, dan pembebasan tersebut hanya diberikan untuk 4 (empat) kali dalam masa 1 (satu) tahun takwim;

    The latest “Peraturan” about this case is PERATURAN DIREKTUR JENDERAL PAJAK NOMOR PER-53/PJ/2008, under pasal 7, item number 4.
    You can find this peraturan in this link: Peraturan Pajak

    I hope this will help.

    Salam.

  18. avatar tionghoakicksass says:

    just want to say 1 thing = all indigenous indons are envious of indon chinese. it’s been like that since the dawn of time. Indigenous are lazy stupid corrupt. Chinese are hardworking smart.
    Indonesia would have collapsed long time ago without its chinese indons.

  19. avatar JJ says:

    Thank you for your response Pak Mantri. That even convinced me more that there is no reason why I should apply for an NPWP.

    I think it is best for any “political-related postings” to be posted on other forums. In my view, this forum is really for the benefit of people who would like to share some insights/learn abt the tax regulations in Indonesia.

    Rgds,

  20. avatar superciliousme says:

    Pakmantri Says:
    January 11th, 2009 at 11:09 am

    @ JJ:

    One of the postings from superciliousme said that “..well I’m not sure which country you reside in, but for example in Singapore’s case, the 4 times a year fiscal exemptions that PR holders were given, had expired by end of 2008.”
    I presume that to mean: no more fiscal exemption for indonesians who reside in overseas.

    I believe that is not true, this peraturan pajak (KEPUTUSAN DIREKTUR JENDERAL PAJAK
    NOMOR:KEP-37/PJ./2001) is still valid, :

    oops… oh well.. I’ve applied for mine anyway.. so let’s just hope the annual filing can be done smoothly online..

    anyway… di sini banyak provokator yah.. pantesan aja ga pernah akur2.. kasiannnn deh kita..

  21. avatar Pakmantri says:

    anyway… di sini banyak provokator yah.. pantesan aja ga pernah akur2.. kasiannnn deh kita..

    We’ll just have to ignore them, “barisan sakit hati” that’s what we call them and they don’t even live nor want to return to Indonesia anyway, so who cares. 😀

    “Anjing menggonggong kafilah berlalu”, remember this wise words?

    Peace.

  22. avatar Andreas says:

    Hi all,

    This is really a good forum, which shared a lot of information about Fiskal & NPWP.

    I think the enquiries about the Fiskal issue mostly has been clarified with the new Peraturan….

    Without any doubt, this forum definitely is a good forum to discuss the Fiskal issue.. hope we will not misuse it….

    Thanks for all the information

    regards.

  23. avatar James says:

    I was so happy when I heard they would abolish the fiskal, but then I learned fiskal has actually increased from 1M to 2.5M, unless you have the NPWP.

    So my question is, how do you get an NPWP and what are the ramifications of getting one?

    In my case, my wife is Indonesian and we live overseas (China). Whenever she travels to and then from home, she has to pay fiskal. Can she get an NPWP even though we pay no taxes in Indonesia – we have no income there ?

  24. avatar Pakmantri says:

    @James,

    So my question is, how do you get an NPWP and what are the ramifications of getting one?

    The first one you can register online ( click here ), and follow the instructions.
    The ramifications, you have to file your tax annually whether it will be none or otherwise.

    I believe if you don’t have any income in or from Indonesia ( income generating properties, working oversea for an Indonesian company or on behalf of an Indonesian company or other stuff like that ) then it is not necessary to have a NPWP. But that’s just my opinion after reading the tax regulations in the tax office site (Indonesian tax office).

    In my case, my wife is Indonesian and we live overseas (China). Whenever she travels to and then from home, she has to pay fiskal.

    If she is a house maker or has no income from Indonesia and she visits and stays in Indonesia less than 183 days and not more than 4 times in a year, she should be able to get an exemption from paying fiskal tax.
    At the airport in the check in lounge there is tax kiosk, you can go there and get the exemption form, fill it in and provide your ID and prove that you are a resident of the country where you live ( permanent resident card, or passport that has your address in that country, etc) and that’s it.

    Can she get an NPWP even though we pay no taxes in Indonesia – we have no income there ?

    Yes she can, but why? 🙂

    If you want more clear understanding of the tax regulation and law in Indonesia you can visit Indonesian Tax office website. ( click here )

    If you need to translate some of the regulation into English, maybe some of us here could help.

    Regards.

    Salam.

  25. avatar Rin says:

    I am Indonesia , live in the country. My husband and my daughter are foreigner, live and work overseas. I live apart from them because family matters. I usually go visit them 2 to 3 times in a year or they come to visit me on tourist visa. Can I apply NPWP on my name only, since my husband does not work here? I am only housewife , does not have any activity that make money , except little income from interest of my saving. Can anyone suggest me?? Thank you very kindly.

  26. avatar Ross says:

    Interesting question for the experts…no sooner has a firm had to get npwps for its foreign employers than it declares its intention to issue two pay-slips every month, one for the regular salary and the new one for the housing allowance.
    This was all previously lumped together, along with the transport allowance, which is now to be handed out weekly in cash. Any ideas why this should have occurred?
    Is a housing allowance really not subject to tax, or do they just want to lumber the bules with another head-ache?

  27. avatar Oswiks says:

    one quick question… if my NPWP have a word written as Batam.. is this still valid to use in Bintan as exit going to Singapore… or it is only applicable to exit in Batam since our tax have been paid only in Batam….

    Thanks for your reply…

  28. avatar Coolgirl says:

    Hi.

    I am working overseas for 2 years.
    I was too rush to got NPWP since last year Dec 08, finally aware that if we had work pass therefore we no need to pay fiskal.
    Do I need to pay tax in Indonesia as my income is from outside Indonesian ?
    Can I just ignore it ?
    Please help me on this case

  29. avatar bagus says:

    @Ross
    According to definition of income tax (Pajak Penghasilan, PPh), any income that has economic value is an object of income tax. Your company has to report (to tax office) your taxed income acc. to PPh art. 21. The more your income (including any allowances), the more your taxes. So, I think your company will report your regular salary only. The other allowances (transport, housing etc.) will not be repoted as your income, but as company expenses.

  30. avatar Moo-Lan says:

    Hi everyone,
    I know it’s an old topic but I just got informed by friend in indonesia that I need to apply NPWP. I’m Indonesian Married to a foreigner. I’m a house wife, not working. I’ve been living outside Indonesia for nearly 4 years. Sometimes I go back to see my family even though I have to pay 1 Million Rupiah , it’s a bit too much lately for me since I’m not working and almost 1 year I haven’t visit my family back home. So my Question is do I still need to apply for NPWP?
    No extra cost whatsoever?
    Thank you

Comment on “Fiskal Tax & NPWP”.

RSS
RSS feed
Email

Copyright Indonesia Matters 2006-18
Privacy Policy | Terms of Use | Contact