Tax is an obligation for all citizens that earn an income in Indonesia. There is no exception for foreign nationals as long as their activity has economic value, it is subject to Indonesian income tax (Pajak Penghasilan-PPh). The government occasionally updates some regulations and employers, as sponsor companies, must be aware if their expatriate employees have paid the correct tax law.
Categories of Tax Subjects in Indonesia
Domestic Tax Subjects
Foreign nationals are categorised as domestic taxpayers and subjected to Article (PPh) 21 if they are:
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