Indonesia Advisory

Aiming to encourage middle- to upper-income resident to pay taxes, the Indonesian government announced a new tax policy -the exit tax for those aged 21 years and above departing from airports will be raised from Rp 1 million (US$91) to Rp 2.5 million, and for those traveling by sea from Rp 500,000 to Rp 1 million, effective from Jan. 1, 2009, to Dec. 31, 2010. All of the country's international gateways will feature a line for each of the three types of tax-exempt travelers — registered taxpayers, those below 21 years of age, and those with supporting documents.
.

The tax will apply only to those not in any of the three groups. How about social activists and affected people? Paying around USD 100 additional cost for inviting Indonesian activists and affected people before, was already considered expensive, with this new tax policy of USD 250, it is really horrible. It could be a way to prevent social justice activists and affected people for going abroad for advocacy and campaign purposes.

.

Those exempt from paying exit tax directly: .

1. People below 21 years of age

2. Foreigners staying in Indonesia no more than 183 days within the last 12 months

3. Diplomats and people working for the diplomatic corps

4. International organization officials, including families

5. Indonesian citizens with residency permits from a foreign country

6. Haj pilgrims

7. Indonesian citizens working abroad

8. People departing Indonesia by land

9. NPWP holders and their dependents

.

However, the tax office previously said if the NPWP (registered tax payers) was rejected by port officials, travelers would have to pay the tax. So, be ready with USD 250 in the pocket.

.

Those exempt from paying exit tax, with supporting documents:

1. Foreign students in Indonesia

2. Foreigners involved in research in science and culture, cooperation in technology, religious and humanitarian missions

3. Foreigners working in Batam, Bintan and Karimun and liable to pay income tax as per Article 21 or Article 26.

4. Disabled and ill people seeking medical treatment abroad paid for by social organizations

5. Members of art, culture and sport missions who represent Indonesia abroad

6. Students in a student-exchange program7. Indonesian citizens working abroad with approval from the Manpower and Transmigration Ministry