How do I know my obligation to pay tax as an expatriate working in Indonesia?

Foreigners in Indonesia can be categorized as residents or non-residents depending on the length of stay and their activities. When an individual becomes a resident in Indonesia, for tax purposes, he/she is obliged to register at the appropriate tax office as clearly stated by Law Number 17/2000 on income tax provisions. After a taxpayer is registered and has a tax ID Number (TIN/NPWP), he/she has obligations and rights as regulated by the prevailing tax provisions, for example, the obligation to pay and report monthly return (SPT Masa) and annual returns (SPT Tahunan).

How do I get a Taxpayer Identification Number (TIN)?

According to the decree of Director General of Taxes, foreign investment corporation in field of chemical industries, non steel manufacturing industries, and other manufacturing industries that is categorized in the business groups of 35000, and 36000, and 39000 should generally register in KPP PMA Satu.

The requirements of registration are:

• Certification from Board of Investment (BKPM)
• Notary deed for establishment of the corporation
• Power of attorney if the application is signed by person who is not the authorized person in the company

KPP PMA Satu will then issue a Taxpayer Identification Number. The number is valid for all taxes transaction including income tax and value added tax.