IMTA

[Ozric13]

Hi everyone

I currently have a KITAP sponsored with my wife, I have been working for my company for 15+ years in an office in Jakarta, they currently are my work sponsor and organize my IMTA work permit.

My current yearly IMTA was issued in January 23, however, my office is closing its doors at the end of May, I will still be employed by the same company but from the Malaysian office.

So a few questions

1, I`m assuming that will make my current IMTA invalid, or is it still valid to end of the year?

2, I`m guessing I have to report this to Manpower or will they automatically know?, if I don't report it will I be in trouble?

3, As I will be working for the KL office do I have to declare my overseas earnings? as I wont have a working permit

4, Is it better to get a new local company to sponsor me for a working permit?

Many thanks in advance

Alan

 

[snpark]

How will the KL office operate here then? Are you the only employee?

 

[Ozric13]

How will the KL office operate here then? Are you the only employee?

Hi Snpark

Main office in KL has other employees, I will still be based here as we have clients here.

 

[jstar]

Hmm. Did your employer ever investigate the consequences before taking that decision? And did they ever consider to have the Indonesian sales presence moved to a local company (i.e. another local legal entity)?

 

[Ozric13]

Hmm. Did your employer ever investigate the consequences before taking that decision? And did they ever consider to have the Indonesian sales presence moved to a local company (i.e. another local legal entity)?

The Company changed names for legal reasons, and the Jakarta office was not performing well because of Covid, I was kept on because of my experience.

I may be able to get a position in word only for a local company allowing me to work, but get paid from KL, could this work or would this be a no go?

Still need answers to 1,2 and 3

Thank you

 

[R Cameron]

Will your work for the Malaysia office involve Indonesia in any way? Purchase or sales in Indonesia? Clients, suppliers, or customers in Indonesia?

Or, will it simply be working for the Malaysian office on matters purely related to Malaysia and other countries, but not Indonesia?

 

[snpark]

Will you be flying in and out?

 

[Helpful Herbert]

Interesting twist on the most common question on this forum.
I would report to manpower that your IMTA is ending and that you won't be working for the company any more (it's true, the Indonesian company is closing). The IMTA clearly finishes when the company finishes.
Telling them that you will now be working for a Malaysian company seems a bit pointless. They have no jurisdiction over Malaysian companies, or interest in them.
With a wife-sponsored KITAP you're entitled to stay here in any case.

For question 3 - well I guess you could.
For question 4 - do you mean apply for a new job? Or go to one of the outsourced payroll companies that would put you on their payroll and then pay you (deducting a big fee)? [questionable if it's legal but I have seen it done]

 

[R Cameron]

1, I`m assuming that will make my current IMTA invalid, or is it still valid to end of the year?

This one is a very simple 'yes' as IMTA is only for a specific job at a specific company, and that company will no longer exist.

3, As I will be working for the KL office do I have to declare my overseas earnings? as I wont have a working permit

This one is also a very simple 'yes' as Indonesia taxes residents on their worldwide earnings. Some people who have never worked officially in Indonesia have stories of their local tax office refusing to issue them an NPWP making it impossible to report and pay their taxes, but since you have already been working you must already have an NPWP, so no problems proceeding. You should familiarize yourself with the Indonesia-Malaysia tax treaty to try and avoid double taxation.

 

[Dave70]

1, I`m assuming that will make my current IMTA invalid, or is it still valid to end of the year?

Yes, your current IMTA will be invalid as soon as the company cease to exist. However, if your company is not liquidated properly, then on paper, it still exists. Meaning, your IMTA will be valid until it expires.

2, I`m guessing I have to report this to Manpower or will they automatically know?, if I don't report it will I be in trouble?

I will NOT report this to Manpower if I were you, especially if your company still exist on paper.

3, As I will be working for the KL office do I have to declare my overseas earnings? as I wont have a working permit

Yes, if you stay more than 183 days in Indonesia, you are a tax residence of Indonesia. It doesn't matter if you have working permit or not.

4, Is it better to get a new local company to sponsor me for a working permit?

If you have to choose between driving without license or driving with a fake license, what would be your choice?

 

[H29062024]

I know several foreigners on spouse-sponsored Kitas and Kitap living in Bali and working remotely for their companies in the US, Singapore and Europe (no Indonesian-related business). A couple have work permits for Singapore and go back periodically to renew them. Totally under the radar screen. None pay taxes here, same as all the digital nomads who live here more or less permanently on B211 social visit visas. The Indonesian government seemingly couldn't care less.