Showing posts with label TIN. Show all posts
Showing posts with label TIN. Show all posts

Thursday, October 28, 2010

Starting in 2011, does not have any tax ID Free Fiscal !!!

Jakarta - Starting next year, all citizens of Indonesia (WNI) both have a Taxpayer Identification Number (TIN) or who do not have a TIN will be tax-free overseas trip.

This was submitted by the Director of Public Relations Directorate General of Taxation Iqbal P2 Alamsjah to detikFinance, Monday (10/25/2010).

"This was contained in the Income Tax Act (Income Tax) of paragraph 8A of 2010," he explained.

Earlier this year, the Income Tax Act, new citizens who choose a TIN that is free to pay the tax to foreign countries amounted to USD 1 million. The purpose of this rule is to stimulate people to have tax ID.

In this year, with the release of tax payments for Indonesians who have a TIN, Directorate General of Taxation has the potential loss of revenue amounting to Rp 39.5 billion. To cover this potential, the Directorate General of Taxation will boost the program extensification and intensification.

"I'll try for the intensification and extensification. We appealed pay taxes properly," he said.

Source : Detik.com, October 25, 2010

Is Indonesian Workers (TKI) must have a Tax Identification Number TIN?

Maybe there are still many workers who asked about the tax treatment in Indonesia, especially for Indonesian Workers (TKI) working in Foreign Affairs. Because of this during the tax treatment in Indonesia suggests that tax cuts could lead to tax cuts twice (once on Foreign Affairs and once again in the Interior).

But the Director General of Taxation finally issued a Regulation of the Director General of Taxation Number PER - 2/PJ/2009 About the Income Tax Treatment of Indonesian Workers Abroad which asserts that citizens who work abroad for more than 183 days are treated Foreign Taxpayers

And what about the TIN? Should a worker making TIN?
In Article 2 paragraph 1 of Law No. 28 Year 2007 on the Third Amendment Act No. 6 of 1983 concerning General Provisions and Tax Procedures states that each taxpayer who has met the requirements of the subjective and objective in accordance with the provisions of the tax legislation must register themselves at the office of Directorate General of Taxes whose jurisdiction covers the place of residence or domicile taxpayers and given the Taxpayer Identification Number.

In addition, as mentioned above that the workers are treated as foreign taxpayers when living abroad for more than 183 days, so they are not subject to income tax in Indonesia.

So with 2 rules mentioned can be concluded that workers who work abroad do not need to create a TIN. But many are making TIN for the purpose of fiscal free facility.