Sometime ago ever sticking case of income tax for Indonesian workers who work abroad (Singapore), while concerned has family in Indonesia and every month once home to Indonesia for 3 (three) days. He is also making money from Indonesia in the form of deposit interest, income on rent house and rent vehicles.

The debate that arises are:

1.	Are workers will be domestic taxpayers or foreign taxpayers?
2.	Is obliged to register themselves to have a NPWP in Indonesia?
3.	If not required to have NPWP in Indonesia, how the imposition of tax on income derived from Indonesia in the form of rent house, car rental and deposit interest? Is subject to Income Tax Article 23 or Article 26 or the Final Income Tax?
4.	If they have NPWP, whether the income is taxed abroad will be taxed again in Indonesia?

To answer this debate, the fact the Director General of Taxation has issued a regulation Number: PER-2/PJ./2009 date of January 12, 2009 towards Income Tax Treatment For Indonesian Workers Abroad. But it is still a lot of people, especially the Indonesian workers working abroad are not yet known. So to understand more comprehensively, so this paper needs to be made.

In this article will be described first of several ground rules / laws and Avoidance of Double Taxation Agreement (Tax Treaty) between Indonesia and Singapore that could be known how the tax aspects of income tax especially for those foreign workers.

1.	According to Article 1 of Act No. 6 of 1983 as amended by Law No. 36 Year 2008 on General Provisions and Tax Procedures, Taxpayer is an individual or entity, including taxpayers, tax cutters, and tax collectors, who have the rights and obligations in accordance with the provisions of tax legislation on taxes.
2.	All taxpayers who have met the requirements of subjective and objective in accordance with the provisions of legislation on taxes based on self-assessment system, must register with the office of the Directorate General of Taxes to be recorded as well as taxpayers to obtain Tax Registration Number.
3.	Subjective requirements are requirements consistent with the provisions of the Act subject to tax in the Income Tax Act 1984 and its amendments. That is the subject of tax is:
	a.	an individual;
	b.	undivided inheritance as a single unit to replace the right;
	c.	a legal entity;
	d.	a permanent establishment.
		Differentiated tax subject is the subject of domestic taxes and foreign tax subjects.
4.	Objective requirements are the requirements for the tax subject or income received or required to perform cutting / collection in accordance with the stipulations of the Income Tax Act 1984 and its amendments.
5.	Taxes Subjects under Article 2 of Law of Income Tax is :
	5.1.	Subject to tax in the domestic country are : an individual residing in Indonesia, an individual residing in Indonesia for more than 183 (one hundred and eighty three) days within a period of 12 (twelve) months, or a private person in a fiscal year in Indonesia and have the intention to reside in Indonesia;
	5.2.	The tax subject of foreign is :
		a.	individuals not residing in Indonesia, an individual residing in Indonesia are not more than 183 (one hundred and eighty three) days within a period of 12 (twelve) months, and entities that are not established and not domiciled in Indonesia, which runs business or conduct activities through a permanent establishment in Indonesia; and
		b.	individuals not residing in Indonesia, an individual residing in Indonesia are not more than 183 (one hundred and eighty three) days within a period of 12 (twelve) months, and entities that are not established and not domiciled in Indonesia, which can receive or obtain income from Indonesia not from doing business or conduct activities through a permanent establishment in Indonesia.
6.	Article 4 Tax Treaty Indonesia-Singapore explained about fiscal domicile, namely:
	a.	For the purposes of this Agreement, the term "a resident of a Contracting State" means any person who is resident in a Contracting State for tax purposes of that Contracting State. This term shall not include a permanent establishment of a foreign enterprise which is treated as a resident for tax purposes.
	b.	Where by reason of the provisions of paragraph 1 an Individual is a resident of both Contracting States, then his status shall be determined in accordance with the following rules:
		1)	he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closest (center of vital interests);
		2)	if the Contracting State in which he has his center of vital interests can not be determined, or if he has not a permanent home available to him in either Contracting State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode;
		3)	if he has an habitual abode in both Contracting States or in neither of them, the competent authorities of the Contracting States shall settle this question by mutual agreement.
	c.	Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall settle the question by mutual agreement.
On the basis of several provisions above, then the following answer to the debate concluded associated income tax for foreign workers (in this case in Singapore), namely:
1.	If you work in Singapore for more than 183 days, it is based on Singapore tax provisions, the respective eligible residents in the country. If in addition to a resident in Singapore also have a place to stay in Indonesia, there will be a double residence (dual residence).
2.	Resolution of dual residence is set in Indonesia Singapore Tax Treaty in Article 4 paragraph (2). If a person is a resident in both countries that signed the Tax Treaty, the status shall be determined according to the provisions as follows:
	a.	He will be considered a resident of the Contracting State in which he has a permanent home available to him. If he has a permanent home available in both States, he shall be deemed a resident of the State where there are personal relationships and a tighter economy (center of vital interests);
	b.	If the Contracting State in which the center's interests can not be determined, or if he has not a permanent home available to him in one country, then he will be regarded as residents of the country where it usually dwells;
	c.	If he has not a habit of living in both Contracting States or not at all have it in one Contracting State are the officials in charge of the Contracting States will solve the problem based on mutual consent.
3.	How does the imposition of income tax on income from house rent, car rental and deposit rates in Indonesia? Of the provisions of Tax Treaty Indonesia Singapore on solving the dual residence (referred to as the tie breaker rule), then:
	a.	if it is assumed only has a permanent home (domicile) in Singapore (working in Singapore exceed 183 days or by the time test by Singapore tax provisions), then in this set is resident in Singapore. Status in Indonesia is a non-resident. With Indonesia's status as a non-resident, the worker must pay taxes only in Indonesia, if he has a source of income in Indonesia (Income Tax Article 26). Income from rent a house and deposit interest imposed income tax final. And income from rental of vehicles subject to Income Tax Article 26.
	b.	But if instead it is assumed that workers assigned to residents in Indonesia because it only has a permanent home in Indonesia or if having a residence in both countries but in Indonesia have personal relationships and a tighter economy (center of vital interests), then to required to enroll for a NPWP in the country. So in Indonesia Income Tax imposed on all income sourced both in Indonesia and from abroad. Income tax already deducted abroad can be a tax credit in Indonesia by observing the provisions of Article 24 of the Income Tax Act.
4.	But in the Regulation of the Director General of Taxation Tax PER-2/PJ./2009 dated January 12, 2009 of the Income Tax Treatment For Indonesian Workers Overseas has explicitly stated as follows:
	a.	Indonesian workers abroad is an individual Indonesian citizens who work abroad for more than 183 days within a period of 12 months;
	b.	Indonesian workers abroad is subject to foreign taxes;
	c.	On income received or accrued by Indonesian workers abroad in connection with his work abroad and have been taxed abroad, will not be subject to income tax again in Indonesia;
	d.	In the case of Indonesian workers overseas receive or obtain income from Indonesia then the income is taxable income according to the applicable provisions.
From the above it was obvious how the tax treatment of income tax especially for Indonesian workers who work abroad. For the State other than Singapore of course, we look back at how his Tax Treaty. Although strict accordance PER-2/PJ./2009 been mentioned throughout the more than 183 days in the 12 months they will work is subject to tax overseas, but still not ruled out if these workers want to be a taxpayer in the country (perhaps because in some cases the tax calculation can be smaller) to obtain NPWP should meet the requirements as stated in his Tax Treaty. Comparison Income Tax between Singapore Resident (Doesn't have NPWP) and Indonesian Resident (have NPWP): Account Sum Doesn't Have NPWP Have NPWP Salary on Singapore 240,000,000 240,000,000 Income from House Rent 25,000,000 Income from Deposit Interest 15,000,000 Income from Vehicle Rent 35,000,000 35,000,000 Personal Income Tax: Total Income 275,000,000 PTKP K/2 19,800,000 Taxable Income 255,200,000 Personal Income Tax 33,800,000 Tax Credit Article 24 (12,960,000) Tax Credit Article 23 (Income Vehicle rent) (5,250,000) Fiscal Tax (2,5 jt @ 12) 30,000,000 Final Income Tax (house rent & deposit interes): Final Income Tax on house rent (10%) 2,500,000 2,500,000 On Deposit Interest (20%) 3,000,000 3,000,000 Withholding Income Tax at Indonesia: Income Tax Article 26 (Vehicle Rent) 3,500,000 Income Tax Article 23 (Vehicle Rent) 5,250,000 Withholding Income Tax at Singapore : Income Tax on Salary at Singapura 12,960,000 12,960,000 Total Income Tax 51,960,000 39,300,000 Source : Mr. Dwitomo, Soehendro, Ak., M.Si Exposure procced/translated and added by Mr. Peaceman