![]() For payments for year three onwards, the ordinary individual tax rates apply. * The rates are final and applied only if the payment is made at once, or in two years at the maximum if the payment is made in sequence. Severance payments are taxed separately at the following rates*: Taxable income (IDR) * Indonesian rupiah Tax on severance payments Individual tax rates Taxable income (IDR*) The rates applied to taxable income are shown below. ![]() ![]() Concessions are, however, available where a DTA is in force. Non-resident individuals are subject to a general withholding tax (WHT) at 20% in respect of their Indonesian-sourced income. This territorial taxation system may not be applicable when the foreigner receives income from overseas and utilises the applicable tax treaty between Indonesia and the source country. Indonesian citizens that are living outside of Indonesia for more than 183 days in 12 months and meet certain requirements can also be considered as foreign tax subjects. This will only be available for the first four years they become tax resident. However, the Omnibus Law has added a provision to the Income Tax Law stipulating that foreigners who have become domestic tax subjects by reason of becoming tax resident in Indonesia can be taxed only on Indonesian-sourced income (including if paid offshore) if they meet certain skill requirements. A tax resident is generally taxed on worldwide income, although this may be mitigated by the application of double taxation agreements (DTAs).
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