New Fiscal Tax Policy Now in Operation.

(1/2/2009)

As reported by balidiscovery.com [See: Fiskal Tax Increases to Rp. 2.5 Million January 1, 2009], New Year's Day 2009 marked the introduction of a major change in the government's policy on the fiscal tax charges to local residents and Indonesian nationals.

The Rp. 1 million (US$90) formerly charge to residents and Indonesian citizens has been eliminated for those in possession of an official tax number (NPWP) and increased to Rp. 2.5 million (US$225) for those without a tax number.

According to the Jakarta Post, the tax office has been undertaking rehearsal drills to minimize inconvenience during the introduction of the change in fiscal tax policy.

Separate channels have been set up for individuals who must pay the new tax rates and those eligible for the new exemption. According to the Jakarta Post, information pamphlets have also been prepared to guide the public.

The three channels in place at all international airports are:

• Registered taxpayers who are now exempt from paying the fiscal tax.

• Those under 21 years of age are exempt from paying the fiscal tax.

• Those with supporting documents which exempt them from paying the fiscal tax.

A spokesman for the Tax department, Darmin, said, "after checking in at ports or airports, registered taxpayers will need to validate their tax numbers (NPWP) with the tax office (there), and bring a copy of their NPWP," Spouses and other claiming an exemption from the tax will need to bring a copy of their "kartu keluarga" or "family card." To show officials at the airport. Family members of an NPWP holder under 21 are exempted form the fiscal tax, a change from the old policy that only exempted children under the age of 12.

Taxpayers wishing to qualify for the NPWP exemption should apply for tax registration a minimum of three days before departing abroad. This will allow the tax number registration to be conveyed to international gateways at airports and seaports across the country. In the event, however, that the NPWP was rejected by port officials, the traveler would have to pay the Rp. 2.5 million tax which can be claimed against future tax liability.

Those Exempt from Paying the Fiscal Tax

1. Tourist visitors to Indonesia.

2. People below 21 years of age.

3. Foreigners staying in Indonesia no more than 183 days within the last 12 months.

4. Diplomats and people working for the diplomatic corps.

5. International organization officials, including families.

6. Indonesian citizens with residency permits from a foreign country

7. Haj pilgrims.

8. Indonesian citizens working abroad.

9. People departing Indonesia by land.

10. NPWP holders and their dependents.

Those Exempt from Paying Exit Tax with Supporting Documents

1. Foreign students in Indonesia.

2. Foreigners involved in research in science and culture, cooperation in technology, religious and humanitarian missions.

3. Foreigners working in Batam, Bintan and Karimun and liable to pay income tax as per Article 21 or Article 26.

4. Disabled and ill people seeking medical treatment abroad paid for by social organizations.

5. Members of art, culture and sport missions who are representing Indonesia abroad.

6. Students in a student-exchange program.

7. Indonesian citizens working abroad with approval from the Manpower and Transmigration Ministry.