Who is Subject to Tax in Indonesia? Check Out the Explanation – 2024-07-15 16:34:38

Taxpayers are those who are subject to domestic tax. Are you included? (Antara)

TAXES are the primary tool governments use to collect the revenue needed to provide public services and finance state activities. Who is taxed can vary depending on the type of tax and the laws of the country.

Below are some groups that are frequently taxed.

According to the Regulation of the Director General of Taxes No. PER-43/PJ/2011, an individual is a Domestic Tax Subject (SPDN) as an individual who meets one of the following requirements (if the following requirements are not met, they will be subject to foreign tax), including:

1. Residing in Indonesia, namely an individual who fulfills one of the requirements such as having a place of residence and not being temporary or permanent.
2. Having a domicile in Indonesia, especially people who were born in Indonesia and still reside in Indonesia.
3. In the tax year, he is present in Indonesia and intends to reside in Indonesia, including showing a definite intention to reside in Indonesia, taking steps indicating that he will reside in Indonesia, or fulfilling the requirements to reside in Indonesia.

In addition, individuals who have the status of Indonesian citizens can become Foreign Taxpayers (SPLN) if the person concerned works abroad for more than 183 days in a period of 12 months with the following explanation:

1. Indonesian citizens (WNI) who work abroad for more than 183 days in a 12-month period will be subject to foreign tax from the time they leave Indonesia.
2. Domestic Taxpayers who leave Indonesia permanently must submit an Annual Income Tax Return no later than the time of departure from Indonesia.
3. Income received or earned by a person through work outside Indonesia and income earned from outside Indonesia is not subject to income tax in Indonesia.
4. If the person receives or obtains income originating from Indonesia, then the income will be subject to income tax in accordance with the provisions of applicable tax laws and regulations.
5. The individual is still subject to national tax if he does not have or cannot show one of the official identification documents that are still valid as a resident abroad, for example: green card, identity card, student card, foreign address confirmation document on the passport issued by the Representative Office of the Republic of Indonesia abroad.

These people are still required to report the Annual Income Tax Notification Letter (SPT). The report is to account for the amount of tax owed on their income.

Thus, taxes have a significant economic impact, both as government revenue and as a regulator of economic behavior. For individuals and businesses, managing and understanding taxes is essential to ensure proper compliance and optimize their financial structure.

Therefore, understanding who the taxpayers are, the types of taxes that apply, and how to comply with tax obligations is key to building a healthy and sustainable financial foundation at both the personal and corporate levels. (Z-3)