Tax Residency After Moving to Indonesia

Moving to Bali, obtaining KITAS, or living in Indonesia for an extended period may affect your tax residency.

However, your visa, citizenship, or the number of days spent in Indonesia is not enough to determine where you must report income and pay taxes.

You need to check the rules of at least two countries:

• Indonesia — because you live or receive income here;
• the country you moved from — because tax obligations may still remain there.

Sunrise Visa and Sunrise Business do not determine an individual’s tax residency, do not advise on the tax laws of Russia, Kazakhstan, Belarus, Ukraine, or other countries, and do not resolve double taxation issues.

You must check your own obligations with qualified specialists.

First, contact a tax lawyer or tax consultant in your country of citizenship, former residence, or income source. If necessary, separately obtain advice from a specialist in Indonesia.
The taxpayer remains responsible for correctly determining tax residency, filing tax returns, and paying taxes.

In Indonesia, a person may become a tax resident if they:

• spend more than 183 days in the country within a 12-month period;
• or stay in Indonesia during a tax year and have a documented intention to live here long term.

The intention to live in Indonesia may be supported by:

• KITAS;
• KITAP;
• long-term visa;
• employment contract;
• lease agreement;
• other relevant documents.

However, Indonesian tax residency does not mean that obligations in another country automatically stop.

The country of citizenship or former residence may consider:

• number of days;
• permanent home;
• place where the family lives;
• work and business;
• real estate and other assets;
• income source;
• center of vital and economic interests;
• other criteria under local law.

For this reason, it is not enough to count days in Bali or show KITAS.
You need to separately check the rules of your own country with a local tax lawyer or consultant.

Sunrise Visa and Sunrise Business do not perform this review.

Tax residency is not determined by one universal rule for the entire world.
Each country sets its own criteria.
In some countries, the number of days is the main factor. In others, authorities may also consider housing, family, work, business, and other connections with the country.

Because of this, after moving, a situation may arise where:

• Indonesia already considers you its tax resident;
• the country of former residence still considers you its tax resident;
• reporting obligations arise in both countries;
• the same income must be correctly allocated between two tax systems.

You should not rely on the assumption:
“I live in Bali, so now I pay taxes only in Indonesia.”
This assumption may be wrong.
First, check whether you still have obligations in the country of citizenship, former residence, or income source.

Indonesia considers actual residence, length of stay, and intention to live in the country.

One document alone does not always determine tax residency.

Usually, the entire situation should be assessed, including:

• entry and exit dates;
• type and validity period of the stay permit;
• place of actual residence;
• work and income sources;
• family;
• business;
• real estate and other assets;
• obligations to other countries.

Sunrise Visa may help with immigration documents within the scope of its services, but it does not determine the tax consequences of those documents for a specific person.

For individual Indonesian tax residents, a progressive tax scale applies.

This does not mean that all income is taxed at the highest rate reached.
The taxable amount is divided into brackets, and each part is taxed at the rate for that bracket.

The basic non-taxable threshold for a single taxpayer is IDR 54 million per year.

Depending on family status and other circumstances, the calculation may differ.
This table shows only the general scale.
It does not replace a tax calculation and does not account for:

• the specific type of income;
• allowable deductions;
• taxes already withheld;
• possible application of an international agreement.

Imagine that a person lives in Bali, has KITAS, and spends most of the year in Indonesia.

At the same time, in another country, they still have:

• spouse or children;
• apartment or house;
• permanent registration;
• work or company;
• bank and investment accounts;
• real estate that is rented out;
• main clients or employer;
• other economic interests.

Indonesia may consider the person’s stay and intention to live in the country.
The other country may apply its own criteria and conclude that the tax connection with that country still remains.

This is how dual tax residency may arise.

You cannot simply choose the more convenient country and stop reporting in the other one.
First, you need to establish what the law of each country requires.

Then you need to check whether a double taxation agreement exists between them and how it applies to your situation.

This should be done first.
Contact a tax lawyer or consultant who works specifically with the law of your country.
Do not rely only on advice from chats, blogs, or social media comments.

Ask the specialist:

• how the country determines tax residency;
• which period is used to count days;
• whether family, housing, work, business, and other connections are considered;
• whether tax filing obligations remain after moving;
• whether the tax authority must be notified about a change of status;
• how salary, dividends, rental income, investments, and business income are taxed;
• whether tax paid in Indonesia can be credited;
• which documents confirm the new status;
• how the agreement with Indonesia applies, if one exists;
• which deadlines and penalties apply.

Rules differ between countries and may change.

For this reason, a general article cannot replace a review based on your citizenship, income, and personal circumstances.

An agreement between countries may help determine:

• which country is treated as primary for tax residency if there is a conflict;
• where a specific type of income is taxed;
• whether tax already paid in another country can be credited;
• whether a reduced rate can be applied;
• which documents must be provided.

However, the existence of an agreement does not automatically exempt you from tax and does not automatically cancel reporting obligations.

Usually, you need to confirm:

• tax residency;
• type and source of income;
• amount of tax already paid;
• right to apply a specific provision of the agreement;
• required certificate and other documents.

How the agreement applies to you should be checked by specialists in the laws of both countries.

Which document you need and whether another country will accept it should be clarified with a local tax specialist.

The existence of a certificate also does not answer all questions about filing and tax payment.

Collect:

• travel dates;
• stay permit documents;
• information about all income sources;
• real estate data;
• business information;
• family information.

Without the full picture, even a specialist will not be able to give an accurate answer.

Two people may live in Bali for the same number of days and still have different tax consequences.

• One works for a foreign company.
• Another receives business income.
• A third rents out real estate.
• A fourth has a company in Indonesia.

The tax position will be different.