Hi, I will be assigned to work in Indonesia. I am wondering about paying individual income tax. Basically, I will directly receive my salary from the parent company, which is located outside Indonesia. Also, I don't have any income from other sources in Indonesia. I wonder if I still do have to pay Indonesian tax with a progressive rate or not. From many websites, it's said that expats will not have to pay tax in Indo if they are receiving income from their home country. So, I assume that I don't have to pay tax although I reside in Indo more than 183 days. Is it correct?
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According to our research expats will not have to pay tax in Indonesia if they are receiving income from their home country and the tax paid on that exceeds that which would be due in Indonesia. So it seems like it depends on how much tax your are paying in your home country.
I think it would be a good idea to ask your employer about this or to contact a tax specialist in Indonesia.
I hope this helps, for more information please see our page on Banking, money and taxes in Indonesia.
Regards
Candice