Question:
I am a tax manager in a company engaged in IT consulting. My company is recorded to employ approximately 15 expatriates from various countries.
My question is, how is the tax residence of the expatriates determined, are they included as residents (SPDN) or non-residents (SPLN)? Are there certain criteria for determining tax residence?
Wilson, Jakarta.
Answer:
Thank you, Mr. Wilson, for your question. Pursuant to Article 2 paragraph (2) of the Income Tax Law, tax subjects are divided into residents and non-residents. Further, residents refer to Article 2 paragraph (3) of the Income Tax Law as follows:
“Resident taxpayers are:
Next, non-residents refer to Article 2 paragraph (4) of the Income Tax Law as follows:
“Non-resident taxpayers are:
Thus, in general, an individual is declared as a resident if residing in Indonesia, is in Indonesia for more than 183 days within any 12-month period or a particular tax year in Indonesia and intends to reside in Indonesia.
To further clarify the determination of residents and non-residents, the Director General of Taxes has issued the Director General of Taxes Regulation No. PER-43/PJ/2011 concerning the Determination of Residents and Non-Residents (PER-43/2011). Article 3 paragraph (1) of PER-43/2011 stipulates that:
“Resident taxpayers are:
Next, Article 7 paragraph (1) of PER-43/2011 stipulates that:
“An individual residing in Indonesia referred to in Article 3 paragraph (1) subparagraph a number 1) is an individual who:
Further, Article 10 of PER-43/2011 stipulates that:
"The period of 183 (one hundred and eighty-three) days referred to in Article 3 paragraph (1) subparagraph a number 2) is determined by calculating the length of time an individual Tax Subject is in Indonesia, whose presence in Indonesia may be continuous or intermittent, and a fraction of the day is calculated as 1 (one) full day.
Next, Article 11 of PER-43/2011 stipulates that:
“An individual Tax Subject is deemed to intend to reside in Indonesia as referred to in Article 3 paragraph (1) subparagraph a number 3) if:
Based on the above provisions, it can be concluded that individuals or in this case, expatriates will be determined to constitute residents if they fulfill one of the provisions under Article 7 paragraph (1), Article 10, or Article 11 of PER-43/2011 (non-cumulative). On the other hand, if an individual does not fully comply with the provisions under Article 7 paragraph (1), Article 10 or Article 11 of PER-43/2011, the individual is a non-resident.
We hope our answer satisfies your inquiries.
(Disclaimer)Cek berita dan artikel yang lain di Google News.
Pastikan anda login dalam platform dan berkomentarlah secara bijaksana dan bertanggung jawab. Komentar sepenuhnya menjadi tanggung jawab komentator seperti diatur dalam UU ITE.