What is NPWP?
Many questions running on my mind and I can't find Indonesia government website that explain about it?
I wish that Indonesia government will have more informative website like Singapore such as: IRAS or ICA or MOM
I think NPWP (Nomor Pokok Wajib Pajak) is a Tax ID.
I heard a friend telling me that if we don't have NPWP, we need to pay fiscal when we want to go overseas.
What I read from a local newspaper (kompas) it stated that those who has NPWP doesn't need to pay fiscal anymore.
But for quite long time those who hold permanent residence in other country (as example Singapore PR) doesn't required to pay fiscal if the person is going to enter Singapore.
My question is, do we, Indonesian who holds Singapore PR now need to register NPWP in order to enjoy free fiscal?
What if some city in Indonesia that is fiscal free if the residence want to go to Singapore such as Batam?
Do we need to pay tax again for our income to Indo Government if we already paid tax to IRAS?
This is called double tax.
Actually we can avoid double tax which Singapore and Indo government has agreement before.
How to avoid DTA?
Submit the Certificate of Residence (COR) to the foreign tax authority to prove that you are a Singapore tax resident.
If we are Indonesia tax resident that has concluded a tax treaty with Singapore, you may be protected from being taxed twice on the same income in Singapore.
If we are Singapore tax resident.
When you earn foreign income from a treaty country, you may be subject to tax in that foreign country. However, you may wish to claim the DTA benefits that entitle a Singapore tax resident to enjoy a reduced tax rate or a tax exemption in that foreign country.
I'm still confused.
There is an article in the IRAS website that I found...
There is an agreement between Singapore government and Indonesia Government about Double Taxation Agreement.
(http://www.iras.gov.sg/irasHome/uploadedFiles/Quick_Links/singaporeindonesiadta.pdf)
The DTA also provides for tax reduction or exemption on certain types of income.
More info here!
To apply:
Download the form and submit to IRAS.
This form will prove you that you are subjected to tax in Singapore.
So that the Indo government will exempt you from double tax.
And you can enjoy free fiscal still.
Regarding NPWP is needed in order to renew passport, I'm not so sure.
Once I find out I'll share here :)
I think if NPWP is compulsory in order to renew passport, a lot of Singapore PR from Indonesia will convert to Singapore citizen.
0 comments:
Post a Comment