Resident Taxpayer

The term “resident Taxpayer”  based on the Income Tax Law of Indonesia, means:

1. Individual who resides in lndonesia, is an individual who has been present in lndonesia for more than 183 (one hundred and eighty-three) days within any 12 (twelve) months period, or an individual who has been residing in lndonesia within a particular taxable year and intends to reside in lndonesia.
2. entity established or domiciled in lndonesia, except part of government bodies which fulfills some criterias;
   1. Its establishment is pursuant to the laws;
   2. financed by State Budget or Local Government Budget;
   3. Its revenues are included in State Budget or Local Government Budget; and
   4. Its book keeping is audited by the government auditor; and
3. Any undivided inheritance as a unit in lieu of beneficiaries.

ln principle, an individual who constitutes a resident taxpayer is an individual residing or staying in lndonesia. Included in the term “individuals residing in lndonesia” are those who have the intention to reside in lndonesia, the determination of which shall be considered is based on the facts and circumstances.

To meet the criterion of “present in lndonesia for more than 183 (one hundred and eighty-three) days”, an individual does not have to be consecutively present. It shall be determined by the total number of days the said individual is in lndonesia within a period of 12 (twelve) months since his/her arrival.

An undivided inheritance inherited by an individual as a resident taxpayer shall be assumed as a Resident Taxpayer under this Law. To meet the taxation obligations thereof, the said undivided inheritance substitutes the obligations of the heirs/heiresses who have the right thereof. If the said undivided inheritance has already been distributed, then the taxation obligation thereof shall be transferred to the heir/heiresses.

An undivided inheritance inherited by an individual as a Non¬resident taxpayer not doing business or conducting activities through a permanent establishment in lndonesia is not assumed as a substitute to the taxpayer because the tax imposed on income derived by the said individual shall be inherent to the object.

sources: idtaxes.wordpress.com