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Bali Tax Office to Scrutinize Foreign Workers in 2011

Bali Tax Officials Cooperating with Immigrations to Ensure Foreign Workers and Residents Who Spend 183 Days Each Year on Bali are Paying Taxes.


Bali News: Bali Tax Office to Scrutinize Foreign Workers in 2011
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(12/27/2010)

The Directorate General of Taxation for Bali has announced plans to scrutinize the payroll tax (PPh 21) paid by foreign workers in Bali. The review will take place in 2011 following a tabulation of foreign workers now underway between the tax office and the immigration department.

According to Bisnis Bali, the head of the Bali Directorate General of Taxation, Zulfikar Thahar, had confirmed the review of taxes paid by foreigners would occur in 2011 in order to ensure foreign workers are paying their fair share of income tax. "We have already asked for data on foreign workers in Bali from the immigration office. We have received the relevant data from the three immigration offices in Bali. This year (2010) the Directorate General of Taxation is accumulating data first and will rationalize the collection of income tax from foreign workers in 2011," explained Thahar.

Statistics maintained by the Badung regency manpower department show more than 9,000 registered foreign workers live in Bali's southernmost region.

Thahar said that his office confronts difficulties in determining the exact amount of payroll tax contributed by foreign worker due to current practice which only records a lump sum paid each month for payroll deductions, covering both local and foreign workers.

Thahar said that in 2011 his office would initially ensure that foreign workers and residents hold a valid tax-payer number (NPWP). He explained: "All foreigners who stay more than 183 days a year in Bali must possess a NPWP. Foreigners who stay more than 183 days are not on holiday in Bali. They must be working or running businesses in Bali."


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