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 james says:

    I asked the same question on 1/16 and the answer I got was that you don’t need NPWP and you shouldn’t have to pay fiskal if you live overseas and have a visa indicative of that.

    So if you have a visa in your passport that shows you are a resident of another country then supposedly you don’t have to pay fiskal.

  2. avatar Chris says:

    He’s just another crying baby chinese hating indonesian…if they weren’t here running the business who would? I don’t see any natives stepping up to do it.

  3. avatar Suryo Perkoso says:

    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.

    Well, if you had an NPWP you might suffer a routine audit, and if you don’t, then you will hardly claim it back, because you won’t be paying tax in the first place.

    As you rightly say the UK has a big problem with fraudulent benefit claims, but to date, I don’t think Indonesia does.

    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 ?

    Hey Mas – kados pundi? and how is little Sinyo or was it Noni? Sepurane mas, aku wes lali ! Must be getting quite big now.

    I can expect a tofu rocket to come flying over the Tenggerese in the morning for this.

  4. avatar Suryo Perkoso says:

    james Says:

    March 7th, 2009 at 9:24 am
    I asked the same question on 1/16 and the answer I got was that you don’t need NPWP and you shouldn’t have to pay fiskal if you live overseas and have a visa indicative of that.

    So if you have a visa in your passport that shows you are a resident of another country then supposedly you don’t have to pay fiskal

    Quite, supposedly immigration are taking it easy with SOSBUD holder for the time being, and in the UK, any Indo passports issued are initially valid for only two years, so that the holder has to come back and register, express their continued desire to remain Indonesia, and thus gain their fiscal exemption.

    Chris Says:

    March 14th, 2009 at 3:46 pm
    He’s just another crying baby chinese hating indonesian…if they weren’t here running the business who would? I don’t see any natives stepping up to do it.

    Quite right, us Javanese and other ethnics couldn’t do it – I mean the people who may invest US$5 billion in sidoarjo must be chinese, well mustn’t they?

    You’d do well to remember old Suryo Perkoso and the rest of us Prijaji…

  5. avatar Suryo Perkoso says:

    @James – maneh.

    Your wife shouldhave registered at the KBRI when she arrived, and she won’t get a new passport there unless she does – the visa means nothing in law (though forgiving pejabat may help you get your fiscal exemption).

    You’ll find that generally the staff at the fiscal desk are helpful in ensuring that genuine overseas residents don’t get clobbered for fiscal – perhaps it is just a question of attitude?

  6. avatar sue says:

    Hi,
    I am an indonesian citizen.Just got my NPWP card yesterday.I have to travel to Singapore with my boss tommorrow.I was told that the card will take 2 wks to get active. So do I need to pay Fiscal still till the card gets active or is there any way I can be exempted.Thanks.

    Sue

  7. avatar m.wood says:

    great, now i have to keep going down south asking for the embassy to abolish fiskal everytime i fly back home. no thanks to this new reg.

  8. avatar Michael says:

    As a foreigner boule (u.s.a.), i stay here in indonesia with my indonesian wife and our 2 babies – i only leave every 3 or 4 months to get a new social bodaya visa. My question, and i have many friends with the same situation, is this;

    Will I have to pay 2.5mm fiscal tax every time i exit since i do not stay more than 183 CONSECUTIVE days but I do stay more than 183 total days each year?

    If I must pay, can I get a tax number to get an exemption? Do I need a kitas to get a tax number? but i do not work here – (only taking care of my family) so can my wife sponser me to get a kitas…? Then I can get a number to be exempt from the exit tax…? is this how it works.?

    Otherwise I am forced to leave my wife and kids here alone.

    Thanks so so much – this is critical for us all.

  9. avatar Suryo Perkoso says:

    I’m surprised the anally retentive kermit hasn’t stuck his hooter in on this one.

    You need to be a little careful here – in theory, yes you do have to pay fiscal, but immigration are taking very easy line with this – in most airports you can just blank it and walk straight past the fiscal check desk. If you get into the KITAS game then whilst you won’t have any income in Indo, you in theory could have an income from outside that you may have to declare if you have an NPWP – to be quite frank with you I would tend to stay away from the KITAS and NPWP game if you can, and go for a multi business visa which can be arranged for about US$300, and will give you 60 days non extendable visa. OK, there is still a requirement for your wife to make a report strangely if you live in your house without a WNI then the requirement seems to sort of vanish – and in truth if you have a reasonable relationship with the local plod, then no one gives a toss.

    Persoanlly in your situation I would tend to steer clear of the KITAS/NWP route – yes, your wife can sponsor you, you start with a SOSBUD, extend it a couple of times, then go for “mutasi” to a KITAS, of course then you are stuck, you can’t go anywhere while the application is being made, and then you become also “known” to immigration.

    Whilst i’d not normally recommend any agent ( the majority are a bunch of bin scrapping mouse hounds, like old noodle neck) – I would recommend you speak to Ratna of Rami services who is pretty on the ball and not over the top price wise.

    (Just looking at that, I seem to imply that Ratna is “pretty” – this is NOT the case, she is a bit of a monster, but she is reasonably clued up)

  10. avatar keksoderkrummel says:

    I have been reading this article about the fisacl taxing system, and I find it very unfair, there is no labelling, everyone must pay who is not a card holder or a tax payer, I think students should be excused of paying, also who knows where the money is going, if the taxes would be invested into poverty helping families who really are destituted and have no means of income like a social system which is practised in the western worlds, then i could understand and accept fiskal taxation, actually if the goverment would set up office in every town a tax merchant things would be alot better, evan the goverment workers i see are not busy in many places and many offices are over staffed, why not utilize these workers in making town surveys to call in tax payments from small businesses around there area. This should do away with the fiskal taxing at airports, also its not fair that other people must pay tax for others, its about time the goverment starting working on a system that we all could benifit from in the near future. The same goes for Import taxes there are big markets just at the doorstep of indonesia if the import taxes would be lifted or reduced, these imports will not affect Indonesien trade it will only bring more money into the country and make new jobs.

  11. avatar fridgemagnet says:

    FISKAL tax is there to keep the poor from exiting the country – they may become discontented if they see other places…Nail down your poor, it’s about control.
    The money goes into someones pocket – it takes generations to eradicate such endemic corrupsi – if ever.
    Even if a poor person submits a tax return, they are not out of the woods – as they pay NO tax, they must report to ( in Bali) Denpasar tax office every month, and this takes most of the day queuing. The poor must be kept in their place.
    As to what’s good for the country – I think nobody in government really cares – it’s all window dressing.

  12. avatar Gartini Isa says:

    I am a permanent residence of the USA since November 2008. I have also reported my status to the Indonesian Embassy in Washington, DC. I would like to transfer deed of my house to my children in Jakarta. The notary said that I should have an NPWP. I argued with her that I have a greencard and pay tax in the States. She said that my having a greencard means that I am already a US citizen secretly. I told her that it is nonsense if I needed an NPWP just to transfer deed of my property and I also said that having an npwp means I have to submit a financial report every year while I am not a residence of Indonesia.

    Anyone can help me solve this problem? Preferably if you have hard evidence in the form of regulation with regard to exemption of securing npwp. thank you.

  13. avatar Rashid says:

    Sir,

    Indonesian maid holding NPWP Card what is her procedure?
    Is she taxable of her income?
    She was asked to report by 31st March 2011.
    She is confuse.
    Any procedure?

  14. avatar Ken Reemeyer says:

    Do local citizens, such as non working housewives need to produce an NPWP when purchasing an airline ticket, for the purpose of travelling overseas to join their husband who lives and works overseas.
    This is after the abolition of the fiskal tax.
    Also what is the cost of getting an NPWP.

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