Non-resident Taxpayer

The term “non-resident tax payer” according to income tax law in Indonesia defines as an individual who does not reside in lndonesia, has been present in lndonesia for not more than 183 (one hundred and eighty-three) days within any 12 (twelve) months period, and an entity which is not established and is not domiciled in lndonesia conducting business or carrying out activities through a permanent establishment in lndonesia.

Non-resident Tax payer also means any individual who does not reside in lndonesia, has been present in lndonesia for not more than 183 (one hundred and eighty-three) days within any 12 (twelve) months period, and any entity which is not established and is not domiciled in lndonesia, which may receive or accrue income from lndonesia other than from conducting business or carrying out activities through permanent establishment.

A non-resident taxpayer is an individual or entity residing or domiciled outside lndonesia, who derives income from lndonesia, through or not through a permanent establishment. An individual not residing in lndonesia, but staying in lndonesia for less th an 183 (one hundred and eighty-three) days within a period of 12 (twelve) months, is a Nonresident Taxpayer.

If the income is derived through a permanent establishment, the individual or entity is taxed through the permanent establishment. The said Individual or entity shall maintain the status of Nonresident Taxpayer.

Therefore, the permanent establishment substitutes the individual or entity as non-resident Taxpayer in fulfilling the taxation obligation in lndonesia. In the case that the income is not derived through a permanent establishment, the tax is imposed directly to the non-resident taxpayer.

sources: idtaxes.wordpress.com