Job Discussion Forums

[alc]

1. If I don't get an NPWP from my employer, and I have a single entry visa, can I still leave Indonesia in the middle of my 12 month contract? (for example, going home for Christmas) I know I would have to pay the fiscal tax, but am I allowed to legally exit and re-enter?


2. If I don't have an NPWP, do I have to pay the fiscal tax at the end of my 12 month contract when I am required to leave the country?

[malu]

1. You can leave and re-enter if you apply for an ERP (exit re-entry permit) beforehand. This will require your employer's cooperation and the ERP will cost you about Rp500 000 (can't remember exact fee). No NPWP = Fiskal of Rp2.5M.

2. Legally your employer is responsible for Fiskal at the end of your contract and for all costs involved in getting the final EPO (exit permit only). However... a sh1tty employer once tried to cheat me on this and I was stung for the charge on exit, though I did manage to extract the money from the employer afterwards.

[alc]

1. OK, I just want to make sure that I understand everything correctly. I'm getting ready to sign a contract with an employer who has a very good reputation. Unfortunately, they don't give an NPWP and they only arrange a single entry visa. I'm going to try to get them to arrange a multiple entry visa before I sign the contract (at my expense), but I'm not sure they will do it. I'm aksing for this information so I know the worst case scenario in regards to how much it will cost me and how much of a hassle it will be to go home for Christmas. I definitely won't be leaving the country more than once during my contract since I won't have an NPWP. Is it worth the extra cost of a multiple entry visa if I only want to leave once? Or should I just get the single entry visa and arrange my one exit and pay various taxes at that time?

2. My potential employer told me that I did NOT have to pay the fiscal tax at the end of my contract, but they didn't mention an "EPO" or any details of why/how I wouldn't have to pay. If they arrange this "EPO" does that exempt me from paying the fiscal tax? In other words, what do I need to ask them specifically (and have written in my contract) to know that they're not just telling me what I want to hear. Then I get stuck paying it anyway at the end of the year.

Thanks again!!

[benbobaggins]

hi there,

Here's what i think, but i'm not 100% sure...

1. Your employer, if it has a good reputation, should be giving you a NPWP card. This means the school is paying your tax. Not necessary last year, but now it is. You probably won't be affected, but your school will save money by not paying tax. However, this leaves you in the situation where someone (a disgruntled boss/employee etc etc) could land you right in it by telling the authorities that your school, and therefore you, don't pay tax. Sound unlikely i know, but this IS Indonesia, and believe me I've heard a lot worse stories. So, I would demand that they pay your tax for you, if not, look somewhere else.

2. A single permit means that you can leave once. The school will assume this is at the end of your contract. Then, yes, they will pay for your fiscal to leave, and you will be issued an EPO which legally allows you to leave the country.
Now, if you wish to go home at Xmas, then you will need a multiple exit visa or ERP as mentioned by Malu. At one school i paid for this, at another the school paid. It is not much more than a single, so ask the school for this now if possible. At Xmas, yes, you will still have to pay the fiscal because you don't have a tax card. Then, at the end of your contract, the school will pay for your EPO, so you can leave, and no need for you to to pay fiscal - the school will do this also. (hopefully......)

I think this is right, but people should add to this thread soon as well. Good luck.

[malu]

[laughing_magpie06]

Guys, if this gentleman leaves the country at the end of his contract with an EPO and a cancelled KITAS he will NOT pay fiskal. This has been the case for around 4 years. I used to have to pay fiskal in the first year I lived there but not the last 2.5. As far as I know this hasn't changed.

In regards to the NPWP, they most likely will have to pay this along with the 'bule' tax of 100 bucks a month. But sure get some confirmation on this first.

[tanyakenapa]

Well, I'm leaving the country next Sunday (7 days to go boo hoo) with an EPO ... I'll reconfirm for you that we don't have to pay fiskal

[alc]

Thank you everyone!

I don't want to post the employer's name since I'm probably going to sign the contract even if they don't give me the NPWP. I asked my interviewer about the NPWP and he told me that the school pays a group tax right now and that their schools aren't required to switch over to the "new" system yet. I don't know if that's true or if it's their excuse for the time being. I've examined their contract thoroughly and everything else looks legitimate. Free housing, lots of paid vacation (when school is closed), medical, reimbursed airfare, etc. Unfortunately the only shady thing about them is the tax situation (which is the most important, I know).

I'm going to ask the school to add a clause in the contract saying that they're responsible for paying all income tax (individual, group, etc.) related to my employment. I don't know if that's enough to cover me if something happens but at this point I'm willing to take the chance. After researching employment in Indonesia for the last year, it seems that there's no such thing as a totally legitimate and legal employer in Indonesia anyway. Obviously I won't sign the contract if they refuse to add the income tax clause.

Thank you again for all of the replies!

Tanyakenapa, please let me know what happens with the EPO if you have time to make a quick post after you leave.

[Vertumnus]

Back around January, there was a thread about the NPWP and FISKAL tax. I posted a translation in that thread from Indonesia's treasury website. You should read it.

First, LM is incorrect that you don't have to pay the FISKAL when you leave on an EPO. I recently left on an EPO and I would've had to have paid the FISKAL (Rp. 2.5mil) except I had my NPWP card.

If you don't have the NPWP card, you MUST pay the FISKAL (unless you qualify for a special waiver, which I doubt). In addition, if they notice that your employer didn't pay your income taxes/foreigner taxes, you'll be hit up for that, too.

A friend of mine who was preparing to leave the country recently was forced to pay 3x the amount of taxes owed (by immigration) because his employer had never paid the taxes. His employer later refused to reimburse him, claiming they'd bribed immigration before...

I assume that your "single-entry visa" means a work visa. Providing your employer agrees, you can leave on an EPO or a multiple-reentry permit for your vacation. You'll be stuck for the FISKAL tax, of course and, if they've lied to you about that "group rate tax" deal, you'll possibly be hit for income taxes or whatever, too. Be careful...

Stick it in your contract that they are legally responsible for ALL taxes related to your employment, as well as all documents (KITAS, visa, police report, labor dept report, KTP-OA, NPWP, etc.). Then, although you'll be screwed up-front, you'll have legal recourse later.

There are lots of companies here that dodge the taxes. Just the foreigner tax is $1200 and that's too much for many smaller organizations, plus the monthly income taxes. Some do it because they're shady, others because that's the only way they can afford a foreigner. In the end, it has an impact on you.

Best of luck.
-D

[Atoms for Peace]

[Synergy101]

I second Atoms for Peace NPWP is mandatory under the new tax law especially for foreigners who on average make a whole lot more money than locals. Make sure your employer provides one!!

Some places provide EPO or MERP but it is not mandatory by law.

[alc]

I have declined the offer and let them know it's because they don't provide an NPWP.

Thanks!