Tax Issues for Americans Living in Indonesia

Here are some articles dealing with taxation issues, both US and Indonesian -- something all of us have to deal with in one way or another.  This section deals with both US income tax as well as Indonesian taxes that might affect us. Our affiliate, Taxes for Expats, has provided this information for your benefit.  If you know of other good articles on such, please send them to us via our contact form. -- Dave

 

US Income Tax Information for US Expats

In the current state of the US economy, more and more individuals are seeking opportunities in other countries which simply are not available in the United States.  International commerce has spawned great development in a wide variety of foreign countries in which numerous jobs are available and real estate is still considered a good investment.  If you’re among the populace of US Citizens and Green Card holders who are considering a new life overseas, it’s imperative that you educate yourself on your US tax obligations that will follow you overseas.

Keep in mind that this article is not intended to scare you; rather, increase your awareness on your responsibilities as a US Citizen or Green Card holder living and working in a foreign country.  Most US expats have no reason to be nervous about having to file US income taxes – except for the confusion of filing itself. The reality is that the majority of US expats wind up having no tax liability what-so-ever in the United States after taking advantage of the tax breaks available to them. Those who do wind up owing the IRS generally owe very little – that is, if they have remained compliant each year with US expat tax filing requirements. In cases with multiple years of unfiled returns, balances tend to increase drastically after interest and penalties have been applied.

If you have been living overseas for a number of years and were unaware of your requirement to file US expat taxes or have decided not to file for whatever reason, ... click for more

Indonesian Tax Information for American Expats

This article covers Indonesian income tax -- both personal and corportate -- and VAT tax issues for Americans expats here.

Individual income tax (Pajak penghasilan) rates in Indonesia are progressive up to30%, as follows:

Taxable income (Rp) Tax Rate
0 - 50,000,000 0 + 5% on excess
50,000,001 - 250,000,000 2,500,000 + 15% on excess
250,000,001 - 500,000,000 32,500,000 + 25% on excess
Above 500,000,000 95,000,000 + 30% on excess

An additional 20% tax is imposed on the individuals, other than non-tax residents, who do not posses tax identification number (NPWP).

ALLOWABLE TAX DEDUCTIONS

In determining the annual taxable income of an individual, ... click for more

Expat Tax Guides

There's a wealth of other informaton on virtually all aspects of taxes for American expats in guides here -- see some topics below. Also under their links for "Expat Tax Guides" and "Tax Articles" are answers to many more  tax questions.

 

Articles courtesy of Taxes for Expats. All rights reserved.

Taxes for Expats

 

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