Ending your tax residency in Indonesia can be a meticulous process, but with the right steps, you can ensure a smooth transition. Follow this guide for a comprehensive understanding of each necessary step.
Step 1: Notify the Tax Office
Submit a written notification to the local tax office (Kantor Pelayanan Pajak or KPP) where you are registered. Ensure the notification includes your intention to cease tax residency and the effective date. Attach supporting documents such as your passport, visa, and any other relevant documentation.
Step 2: Settle Outstanding Tax Obligations
Ensure all your tax liabilities are settled. This includes paying any outstanding taxes, filing all pending tax returns, and fulfilling any other obligations. Obtain a Tax Clearance Certificate (Surat Keterangan Fiskal) from the tax office to confirm that you have no outstanding liabilities.
Step 3: Deregister from the Taxpayer Registry
Submit an application for deregistration from the Taxpayer Registry (NPWP) to the tax office. This application should be accompanied by the Tax Clearance Certificate and any other required documents. The tax office will process your application and, upon approval, remove your name from the registry.
Step 4: Inform Financial Institutions
Notify your banks and other financial institutions in Indonesia about your change in tax residency status. Provide them with the necessary documentation to update your records and ensure compliance with both local and international tax regulations.
Step 5: Update Your Personal Records
Update your personal records with relevant authorities, such as immigration and local government offices, to reflect your new tax residency status. Ensure all your records are consistent to avoid any legal discrepancies.
Legal References
- Law Number 7 of 1983 concerning Income Tax (as amended)
- Minister of Finance Regulation Number 147/PMK.03/2017 concerning Procedures for Registration and Deregistration of Taxpayers and Taxable Entrepreneurs
- Director General of Taxes Regulation Number PER-02/PJ/2019 concerning Procedures for the Issuance and Revocation of Taxpayer Identification Numbers (NPWP) and/or Business Entity Taxable Entrepreneur Numbers (NPPKP)
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