Thinking of contracting?
From early planning advice to emergency payroll for imminent work, Link Global can help you with your work arrangements.
Get in touch with one of our advisors now using the phone number at the top of the page, or use our online form and email services.
Payroll Services for
Indonesia Contractors
Employment status in Indonesia
Thinking of contracting?
From early planning advice to emergency payroll for imminent work, Link Global Management can help you with your work arrangements.
Get in touch with one of our advisors now using the phone number at the top of the page, or use our online form and email services.
Link Global Management can provide a full range of payroll services in Indonesia. The individual will be engaged on our payroll and income is paid in the form of salary, allowances and expenses, the proportion of each part depending on individual circumstances.
Salary, Tax & Social Security
Link Global Management deducts tax and social security at source on a PAYE basis, and payments are made to the relevant authorities on the employee's behalf. The taxable amount may be reduced by offsetting certain business expenses. There are different tax rates and bands according to earnings level and marital/family status.
Link Global Management will discuss your personal circumstances with you and help you to minimise your tax and social security liabilities, within the boundaries of Indonesian legislation.
Tax Returns
Income is managed tax efficiently, not just in Indonesia but also in any other country where there may be a liability. A tax return is filed each year in Indonesia with advice and assistance from Link Global Management who will also provide help with filing tax returns elsewhere, if required.
Income tax in Indonesia
Indonesian-resident taxpayers are subject to tax on worldwide income. Nonresidents are subject to tax on Indonesian-source income only. Diplomats and representatives of certain international organizations are excluded from Indonesian tax if the countries they represent provide reciprocal exemptions.
Individuals are considered resident for tax purposes if they are present in Indonesia for more than 183 days within a 12 -month period or if, within the calendar tax year, they reside in Indonesia with the intent to stay.
Under a tax regulation, which was issued on 12 January 2009, an Indonesian national who works overseas for more than 183 days within any 12-month period is considered a nonresident.
Non resident taxpayers are subject to tax at a flat rate of 20% on aII Indonesian-source income.
If the resident individuaI does not have a required Tax Identification Number, the tax rates for withholding tax on employment income are increased by 20%. As a result, the rates range from 6% to 36%.
Thinking of contracting in Indonesia?
