G'day
xxxdavexxx welcome to the forum.
SE Asian countries are currently madly scrambling to grab tax off of whoever they can claim to be a resident by way of them living there for over the magic 180+ days by claiming they are residents. Well in my book if I'm a resident who must pay tax, that should give me the same entitlements as locals and expats working there. Health Benefits and Social Security just for starters!!
I'm not so sure you have to pay tax in Indonesia, mainly because your DSP is tax free in Australia and they have a Double Tax Agreement (DTA) with Australia which should eliminate any tax commitments to them.
A similar situation is currently happening in Thailand. Aged & Disability pensions are thought to be exempt because of the DTA and Self Funded Retirees who "EARN" their pension or annuity are not because, tax is due on the money they earn in Australia from their Superannuation and they must return every year for a certain period or pay a substantially higher rate of tax while staying overseas permanently.
At least that's how Australian social security pensioners are currently assessing things here in Thailand and since my pension goes directly into my Thai bank account from the RBA, until the Thai Revenue Department furnish me with a Tax Identification Number (TIN) I'm sticking by the exemption ruling. These countries also use words so that they can try to construe something out of nothing because of different meanings in different cultural settings.
My advice is; "Don't jump in and put yourself into the Indonesian Taxation System unless you're 100 % sure that this does indeed include you; as it may not be that easy to extricate yourself from it.
Who to speak to to find out for sure..... I don't know unfortunately; but it certainly wouldn't be an accountancy firm in a country whose vested interests lay in you allegedly having to pay tax to their governments.
Personally I think there'll need to be a restructure of things or risk having long term retirees staying 122 days in three different countries. Cheers 🐻
P.S. Just in case you're not confused enough by now
xxxdavexxx, have a read of this malarkey.
www.expattaxes.com.au/taxes-for-australians-living-in-bali/Did You KnowDouble Tax Avoidance Agreements (DTA) treaties effectively eliminate double taxation in specific cases by identifying exemptions or reducing the amount of taxes payable.
It is therefore important for foreign investors, or expatriates working in Indonesia, to be aware of any DTAs that may exist between Indonesia and the native countries that apply to them, and to understand how these agreements are applied in practice between their native or resident countries and Indonesia.
See more:- www.aseanbriefing.com/doing-business-guide/indonesia/why-indonesia/indonesia-s-double-tax-avoidance-agreements#:~:text=Indonesia%20has%20signed%2071%20DTAAs,tax%20exemptions%20on%20services%20fees.
Below are links to a .pdf downloads that goes into it in more detail:-
"It contains provisions for the avoidance of double taxation and the prevention of tax evasion. The Agreement allocates taxing rights in respect of various categories of income flowing between Australia and Indonesia. Certain classes of income are to be taxed only in the country of residence of the recipient.
MAJOR AGREEMENTS BETWEEN AUSTRALIA AND INDONESIA ..."
"ASEAN Briefing
Double Taxation Avoidance Agreement between Indonesia and Australia
A person is not a resident of one of the Contracting states for the purposes of this Agreement if the person is liable to tax in that State in respect only of ...
18 pages·205 KB"
