Job Discussion Forums

[guruengerish]

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Fiscal Tax to End January 1, 2009
Registered Tax Payers to Be Exempted from Rp. 1 Million Fiscal Tax Payment for Traveling Abroad.

(6/30/2008) The Indonesian Director General of Taxation has announced its intention to exempt Indonesian residents who possess an official tax number (NPWP) from paying the unpopular Rp. 1 million (US$107) fiscal charge each time they depart on a foreign trip, effective January 1, 2009.

The fiscal charge, which is settled at special tax kiosks at Indonesian airports and seaports, is technically reimbursable and can be credited against final payroll tax liabilities.

The new move designed to enhance bureaucratic efficiency and encourage Indonesian's to register and pay taxes, will only be available to the estimated 4.9 million individuals who have registered and obtained an official NPWP registration from their local tax office.

Tax officials are hinting that the "fiscal free" facility may only be a temporary measure, with the entire policy up for review on January 1, 2011, two years after the introduction of the trial "fiscal free" period.

Government officials have been quoted in the national press as saying they are confident that any loss in revenues from the fiscal fees will be more than offset by increases in the national taxpayers' base. In 2007, the government collected Rp. 2.5 trillion (US$268.8 million) in fiscal fees. The total fiscal payments collected in 2006 totaled Rp.1.2 trillion (US$129 million).

Under the new facility to take effect on January 1, 2009, travelers need only show the NPWP of the family head to be exempted from paying the fiscal charge. Dependents under the age of 21 can also be exempted under their parent's NPWP, while children under the age of 12 are not required to pay the fiscal fee.

[bule_boy69]

What does that mean for ESLers Guru?

Do you fellas have NPWPs?

[guruengerish]

It means that if you head off overseas for a break half way through your contract, you will not have to pay Fiskal. Your school pays fiskal at the end of the contract normally, and even they may get a break and not have to pay when you leave.

If your school actually pays your 10% tax (and ours tried not to) there should be a record of this.

As I had aging parents in Australia, I tried to get home reasonably often, and the Rp1 juta fiskal was a big lump to pay.

[Llamalicious]

[basiltherat]

[guruengerish]

Well, every school I worked for paid this at completion of contract. (That includes 2x EF)

I know what you mean about officialdom etc, but at least some Fiskal collectors at international airports know this rule exists.

Hopefully, ESL teachers will be able to obtain a tax number from their employers. One EF school I worked for in Central Java, tried to get us to sign a form stating that we were paid half the salary we actually got, thereby reducing the tax to be paid. Needless to say, none of us would be in his little scam and we refused to sign.

In this case, supplying a tax number might have been a problem.

Hopefully, not too many schools try this one.

[malu]

Actually quite a lot (majority?) of schools both language schools and K12 don't register their bules for tax. My current job is the first one here where I have an NPWP number.

[guruengerish]

"Actually quite a lot (majority?) of schools both language schools and K12 don't register their bules for tax."

Wow, that's quite amazing, tho not altogether surprising.

I read recently that only 2% or 3% of wage earners actually pay tax.

[Fishy]

[basiltherat]

[Fishy]

Alright Basil, sorry if I was a bit short before. I really do feel that things have been changing for the better for the past couple of years since I have been getting to know Indonesia. I arrived back here yesterday after a year in England and I am so happy to be back. Jakarta is infinitely more interesting and exciting than Nottingham or London for that matter.

The first surprise I had was immigration. I was worried as I turned up without any proof of a flight back out as I( have arrived on a tourist visa. The immigration guy looked through my passport at previous visas etc and was very friendly as he welcomed me back. I was expecting money changing hands in a room.

Looks like we could be in for an interesting year though. The presidential election is next year so there will be a battle between SBY who I believe genuinely wants to rid this place of corruption and other people with other interests who will benefit from events that cause instability. We've seen it already begin with the recent "student" demonstrations.

I still feel Indonesia has way less corruption than many western countries. Indonesia's corruption is nothing compared to that of the USA and it's the USA government who are currently engaged in international terrorism to further their own ends.

Only thing I really didn't miss about Indonesia was the bloody mosquitoes who are starting to nibble me so I'm off to bed.

[Nabby Adams]

Fishy your post intrigues me. How would you say that Jakarta is way more exciting than London.

London......world class musuems, galleries, concerts, theatre, libraries, seminars, sports, et al. You can meet people from all over the world and from every possible occupation. Whatever your polictical interest you can be sure that there is some kind of group you can meet to discuss your ideas. Whatever hobby likewise. World class architects produce state of the art building in abundance. I could go on.

Dont get me wrong, I love Indonesia, but I don't know in what criteria you find Jakarta so much superior to London?

I would say though that you need to be earning plenty of wedge to be able to afford to live in London. But more exciting?????

[Llamalicious]

[TEAM_PAPUA]

Schools will produce the tax documents when needed: like when you wish to marry or apply for a loan.

[Fishy]