NPWP for KITAS ex-WNI(c318)

[dannyboy]

Hi all,

I am currently living in the country with my WNI wife (she is working informally in a family business) whilst living off our saving and investment overseas. Early next year, I am hoping to convert my KITAS to KITAP ex-WNI and perhaps find some non-corporate jobs/start a small business to support our family (thus not 'breaching' the definition of 'working' in UU no 6 2011 Pasal 61).

I have been advised by my relatives to apply for NPWP after I get my KITAP (my wife already own one) so that I can lodge my tax return properly for the income I get from the future jobs and overseas investment. This way, when I lodge my tax overseas, it is clear to them that I have been taxed in Indonesia.

Any thoughts/experience on this matter? I am wondering whether they might ask for IMTA before I apply for NPWP? Also, I am worried that they might raise the issue on why I need an NPWP, if I am not technically a TKA with IMTA.

Thanks!

 

[Helpful Herbert]

I tried to get an NPWP as a KITAP holder, but as I don't have a business or employer here they rejected the application. If you have your own business or plan to start one, then you can declare this on the application, and then I think you would get one.
There is also a planned law change in March 2020 that foreigners will only be taxed on Indonesian-sourced income in the future, therefore you wouldn't need to include the overseas investment (I guess wait until the law comes out to see the details).

 

[dannyboy]

Thanks for the reply Herbert, very helpful!
I see, so you are not allowed to apply for NPWP unless you can prove that you have an employer.
How does it work for wife sponsored/ex wni KITAP that can't officially be employed by one?

 

[jstar]

It depends on income. If it's more than 54 juta (from the top of my head), you are required to have a NPWP (TIN). If the financials of the couple are combined, you can add 4,5 juta for the spouse.

 

[jstar]

And that's where the Pajak don't really follow their own rules. Immediately they ask you if you work. And that -for them- means, are you a TKA? So the new law we expect early next year, will in fact officialize what they already practice in reality (foreign income not relevant).

Many Indonesians who do have work, esp. those without employer in the restaurant and food and beverage business (think of catering, Warteg, K5, ...) but even the small shop owners don't have a NPWP.

 

[Helpful Herbert]

Thanks for the reply Herbert, very helpful!
I see, so you are not allowed to apply for NPWP unless you can prove that you have an employer.
How does it work for wife sponsored/ex wni KITAP that can't officially be employed by one?

I would say "unless you have an employer or your own business". I think "usaha" is the word used on the form, which means business and also the sense of a general attempt to earn money.