Aditya Suharmoko, The Jakarta Post, Jakarta | Fri, 12/26/2008 9:20 AM
An bilboard on a Jakarta street encourages Indonesians to register with the tax office. Under the so-called “Sunset Policy” program, which ends on Dec. 31, the tax office said over 10 million people have so far registered for a tax file number (NPWP). (JP/Ricky Yudhistira)
The tax office has officially announced an increase in the much-decried fiskal, or exit tax for travelers going overseas, in part to put to rest widespread speculation over the amount of the increase.
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 Jan. 1, 2009, to Dec. 31, 2010.
However, registered taxpayers will not have to pay a single cent; and starting from 2011, the exit tax will be scrapped altogether, according to the Finance Ministry’s directorate general of taxation.
Director general Darmin Nasution said the increase in exit tax was part of an effort to get more potential taxpayers to register for a tax number (NPWP).
It is proving a smart ruse, with many middle-to-high-income residents flocking to nearby tax offices to get an NPWP to comply with the office’s Sunset Policy program that ends on Dec. 31.
The program, under which applicants’ tax obligations in previous years are written off, has seen people rushing to register themselves.
This month alone, the number of people registering for an NPWP was between 50,000 and 100,000 per day, up from about 7,000 people daily in previous months.
The exit tax will from now on become an up-front payment for income tax.
For instance, an employee whose income tax is Rp 20 million per year and who has traveled abroad twice this year — paying Rp 1 million in exit tax each time — will only have to pay Rp 18 million in income tax when filing their tax returns in March 2009.
For those not yet registered, the new exit tax of Rp 2.5 million could prove very daunting.
Satria Ramadhan, who will go to Bangkok for holidays in early January, said he was glad to have registered for an NPWP.
“Otherwise, I would have to pay Rp 2.5 million. I would have definitely canceled my trip if I had to pay such a huge amount.”
Another traveler, Frederick Tobing, praised the move by the directorate general of taxation.
“It’s a smart move. Most people, including myself, will rush to register at the tax office, just to avoid paying the exit tax.”
The directorate general of taxation estimates up to 10 million new taxpayers have registered this year, Darmin said.
“I didn’t expect the number to be this huge. No one expected to tap 10 million new taxpayers,” he said.
To get exemption from paying the exit tax, registered taxpayers must submit a copy of their NPWP, passport and boarding pass to tax officials at airports or ports.
If the NPWP is declared valid, the officials will put a “free exit tax” sticker on the boarding pass. If it is not valid, travelers will have to pay the exit tax.
- Exit tax from airports for people aged 21 years and above raised from Rp 1 million to Rp 2.5 million.
- Exit tax from ports for people aged 21 years and above raised from Rp 500,000 to Rp 1 million.
- Those automatically exempt from paying the exit tax include: People aged less than 21 years; foreigners staying in Indonesia no more than 183 days within the last 12 months; diplomats; employees of international organizations; Indonesian citizens with official documents from other countries, including students; Haj pilgrims and Indonesian migrant laborers.
- Those exempt from paying the exit tax but required to provide documentary proof: Foreign students with letters of recommendation from their universities; foreign researchers; foreign workers in Batam, Bintan and Karimun; disabled or ill people seeking medical treatment abroad paid for by social organizations; people traveling for art, culture, sport and religious missions, and students in a student-exchange program.
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