{"id":6316,"date":"2023-03-21T19:45:02","date_gmt":"2023-03-21T12:45:02","guid":{"rendered":"https:\/\/doortoid.com\/?p=6316"},"modified":"2023-03-21T19:45:02","modified_gmt":"2023-03-21T12:45:02","slug":"personal-income-tax","status":"publish","type":"post","link":"https:\/\/doortoid.com\/dtistaging\/?p=6316","title":{"rendered":"What You Should Know About Indonesia’s Personal Income Tax"},"content":{"rendered":"

Living and working in Indonesia automatically makes an expat a resident tax subject. Among all the taxes, one that is closely related to the occupation of these foreign workers is personal income tax. The requirement to pay this tax is an obligation that cannot be avoided.<\/span><\/p>\n

As an expat, you need to make sure that you have all the necessary documents to prove your employment legitimacy. To further solidify your status as a resident who actively gains income on Indonesian soil, you need to have a tax identification number (NPWP) and pay taxes like the citizens of the country.<\/span><\/p>\n

Then, how does the personal income tax procedure go? Before getting to the main focus of this topic, let\u2019s learn about what it is and the types of taxes that you must pay for your residency status in Indonesia.<\/span><\/p>\n

What is Personal Income Tax?<\/span><\/h2>\n

\"what<\/p>\n

Just as the name indicates, personal income tax refers to the tax that has to be paid by an individual, not an institution. It means that the taxpayer has to be registered with the tax office in order to comply with the tax regulations.<\/span><\/p>\n

As an employee of an Indonesian company, you need to get Form 1721-A1 from your employer and include it in your personal annual income tax return. Other than that, you need to calculate the personal tax based on the salaries classified as gross and net.<\/span><\/p>\n

To be registered as a legal taxpayer, you will need a tax identification number (NPWP). The way to get it is to provide the following documents at the local tax office or online:<\/span><\/p>\n