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Indonesian government is trying to increase the national income on the budget from tax. To attract more people registering for tax payer registration number (NPWP), a sunset policy has been launched and will end by the end of 2008. For citizen with NPWP, the income tax rate will be lower than those without NPWP.

The non-chargeable income, the new ruling as per table below :


The newly pass Tax Act also alter the prevailing income tax band and income tax rate.  For Indonesian with NPWP, starting from January 2009 the income tax rate is as follows

Tax Rate for Citizen With NPWP

Tax Rate for Citizen With NPWP

And the income tax rate for Indonesian without NPWP is as follows (usually directly deducted from your salary) :

Income Tax Rate for Non-NPWP

Income Tax Rate for Non-NPWP

Also there is another incentive for people with NPWP, they are exempted from paying fiscal or exit tax whenever they are traveling out of country at the airports or ferry terminals, the rule apply from 1 January 2009 onwards until end of 2010, whereas starting from 1 January 2011, fiscal or exit tax will be dismissed. However, rumor has it, that fiscal fee or exit tax will be increased by 200% for people without NPWP if they are going abroad.

As usual, most of Indonesian rules and regulations may have multiple interpretations that can lead to different understanding, even for the people at the internal revenue office. For instance if a family has a double income, i.e, husband and wife working. The new Tax bill said, the wife is not required to have NPWP, but if you ask the officer at internal revenue, it is required. Just to be save, better to have both. Aside from that, for Indonesian that currently work and have their earnings inland shouldn’t be any problems with their income tax reporting or assessment.

Meanwhile, I and thousands of Indonesian who works and lived overseas have our own problems. The main problem is, whether we, Indonesian overseas, will have to pay our income tax to Indonesian government for the income earned overseas? To be more specific, Indonesian in Singapore.

To address such problem and supposed to eliminate such confusion among Indonesian in Singapore, the Embassy of Republic of Indonesia in Singapore held a tax seminar on Friday. Instead of giving a clear picture, the seminar leads to more confusion. Because there were two speakers from the Internal Revenue General Directorate of Indonesia which have different opinion on the most crucial question, whether, we, Indonesian in Singapore obliged to pay the income tax for the income we earn here in Singapore?

If the answer is yes, then it is not concur with my logic. We live here, use Singapore facility, earn from Singapore, basically we do not owe anything to Indonesian government, why should we pay our tax?

Apparently the answer is NO, we don’t have to pay income tax for Indonesian government because Singapore and Indonesia ratify the Double Taxation Avoidance agreement. We only have to provide a solid proof that we are Singapore tax residence by providing Certificate of Residence.

Ok, now I want to shout it… goodbye 25%, hello 3%…



  1. Hehehehe di singaporenya tax incomenya cuma 3%. Interesting, disana yang mahal tax propertinya ya katanya? Boleh dong share-share bagaimana sistem tax disana selain tax income yang diandalin pendapatan negaranya dari mana?

    Terus waktu gua ditawarin kerja disana, katanya mesti bayar cpf 20%. Lo ngga kena ini?

    Kemarin mestinya selain nanya bayar tax itu tanya mesti bikin npwp ngga? Sebab kata gua biar ngga mesti bayar tax income, bikin npwpnya perlu biar tahu aja, cuma pas return fillingnya baru dikosongin tulis udah bayar tax disingapore.

    • Sebenernya sistemnya sama kayak indonesia, progressive, jadi semakin tinggi penghasilan, semakin gede taxnya. Cuma rate dan income layernya yang beda. Paling tinggi cuma 19% dan itu udah buat yang penghasilannya diatas S$ 200000 pertahun. Kalo gue gak kena CPF (semacam dana pensiun, yang bisa di jadiin jaminan buat kredit), CPF berlaku buat Permanent Resident dan Citizen doang, dan yang 20% itu nanti ada kontribusi dari perusahaan juga gitu. Buat lebih lengkapnya buka aja

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