Tax treatment on an E33F retirement visa

[Wally]

I worked in Indonesia for many years until 2020. I mainly worked for international donor organisations. But from 2019 I worked for an Indonesian company and was given an NPWP. I retired in 2020 and got an retirement visa, In 2022 I let my KITAS expire and was able to make my NPWP non-active as I was spending less than 180 days in Indonesia each year. In 2025 I obtained a E33F retirement visa, which was very easy and have spent over 180 days in Indonesia. I have been trying to establish my tax position. As far I can tell I am obliged to fill in a tax report but only to report any income arising in Indonesia (which is zero). I receive two UK pensions, which are taxed in the UK. I believe these are not taxable here, nor is any dividend income from the UK. Am I correct?

 

[marcus]

... from 2019 I worked for an Indonesian company and was given an NPWP ...

Did you present the annual Tax Return Report about the time you worked for the Indonesian company ? And if so , did you declare your worldwide wealth ?

... to make my NPWP non-active as I was spending less than 180 days in Indonesia each year ...

To make it non-active I had to make a formal request to my local Kantor Pajak .

... got an retirement visa (2020/2022) ... In 2025 I obtained a E33F retirement visa ... I have been trying to establish my tax position ...

So as far as I understand , if you didn't formally request to make the NPWP non-active , it is considered active and you should have presented the annual Tax Return Report even if you didn't work . Indonesia may request your tax reports from up to 10 years ago .

I have said before that the Indonesian Tax Offices seem not been enforcing the income tax over worldwide income from foreigners holding KITAS/KITAP but having no Indonesian income except interests in bank(s) . But as you worked in 2019/2020 , you may be more targeted by the tax officers .

I receive two UK pensions, which are taxed in the UK. I believe these are not taxable here, nor is any dividend income from the UK. Am I correct?

In principle I think these are all taxable here . You can check the Tax Treaty between Indonesia and UK (below) and the Indonesian Tax Law (UU no.7 Tahun 1983/UU no.36 Tahun 2008) , or consult the Indonesian tax officers at your local Kantor Pajak .

https://www.pajak.go.id/en/p3b/united-kingdom - Tax Agreement Indonesia & UK

 

[Wally]

Thanks for your very detailed reply.

I didn't declare my worldwide wealth when I worked for an Indonesian company but the tax authorities discovered I had an investment account in Singapore. In 2022 I had to revise my tax reports for the years 2018-21 to report this and pay a penalty on late payment.

In 2022 I made a formal request to make my NPWP non-active and it was granted. I have a letter to show this. But still the tax office sent me a letter in both 2023 and 2024 reminding me to fill in my tax report, but I sent copy of the letter confirming my NPWP was non-active and they accepted that.

My investment account in Singapore was closed in early 2025.

I read the tax treaty and it appears that pensions are taxed in the UK and are not subject to Indonesian tax. But dividends would be. But as you say, it appears that this is not being enforced. I hope so! I am reluctant to consult tax officers as that may alert them to the issue in my case! Maybe I should talk to a tax consulant. I had one before when I had to revise my tax returns in 2022.

 

[marcus]

... I am reluctant to consult tax officers as that may alert them to the issue in my case!

I agree . I asked tax officers about that around 3 times already (2010? , 2015? , 2024) , but since my first Indonesian Tax Return Report I never had work income , so a different situation .

The last time I asked the tax officers was recently when I went there to change the NPWP number to my NIK (even it being non-active) . He asked only if I pay income tax in my country (over my investments in fixed interest bonds there - the only I have/had and never declared here) . I answered yes , so he finalized saying that I didn't need to activate my NPWP in order to declare that income here .

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By the way the Laws I referenced before were revised by the Omnibus Law .

Omnibus Law (UU no.11 Year 2020) .
Article 1 1 1 (page 617 in the pdf copy - free translation , partial)
Several provisions ... concerning Income Tax ... are amended as follows:
Article 4
(1) The object of taxation is income, namely any additional economic capacity received or obtained by a Taxpayer, whether originating from Indonesia or outside Indonesia, that can be used for consumption or to increase the Taxpayer's wealth, in any name and form ...

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UU no.6 Year 2023 (Omnibus Law revision) , page 633 , Article 111

 

[pantaiema]

"I didn't declare my worldwide wealth when I worked for an Indonesian company but the tax authorities discovered I had an investment account in Singapore. In 2022 I had to revise my tax reports for the years 2018-21 to report this and pay a penalty on late payment."

@marcus
From this example, your previous statement suggesting they are not interested in income obtained from abroad is inaccurate, isn’t it? I mentioned this inaccuracy to you a few times in the past.

Also, as a matter of common sense, if they truly had no interest in foreign-sourced income, there would be no reason to implement a worldwide taxation system instead they could just adopt the regional taxation system.

 

[marcus]

... your previous statement suggesting they are not interested in income obtained from abroad is inaccurate, isn’t it? I mentioned this inaccuracy to you a few times in the past ... Also, as a matter of common sense, if they truly had no interest in foreign-sourced income, there would be no reason to implement a worldwide taxation ...

To clarify to people who want to know the complete 'story' about this subject :

I never said ONLY "they are not interested in income obtained from abroad".
These few words (if I ever wrote , I feel now , are not appropriate) were part of a longer opinion about the same subject mentioned above (post no.2) which I repeat here (changed a little) :

"I have said before that the Indonesian Tax Offices seem not been enforcing the income tax over worldwide income from foreigners holding KITAS/KITAP but having no Indonesian income except interests in bank(s) . But if you legally worked in Indonesia before , you may be more targeted by the tax officers ."

And why I say/said that ? I myself asked 3 different Tax Offices (maybe in 2010, 2015, and 2024 - see my post no.4 above) + I did read few Forums' members 'saying' they got a similar response from Tax officers (like denying the issuance of the 'NPWP/Tax Number' due to not having work income in Indonesia) .

 

[Helpful Herbert]

It seems like working for an Indonesian entity, even for a very short time, can have disastrous consequences for your tax position.