Indonesians traveling abroad from Jan. 1, 2011 will no longer be required to pay the fiscal exit tax, a senior tax official said.

“We will abolish the exit tax, which must be paid by Indonesians and residents who travel abroad,” Directorate General of Taxation spokesman Iqbal Alamsyah told The Jakarta Post on Thursday.

Under the new policy, all taxpayers will be exempt from the exit tax, he said.

According to the 2008 Income Tax Law, the  exit tax would be valid until Dec. 31, 2010.
On Jan. 1, 2009, the government abolished the payment for taxpayers who could provide their tax ID number (NPWP).

The decision was made to encourage the people to get an NPWP, since many Indonesians do not have one, and do not pay tax.

“Starting Jan. 1, 2011, the policy will be extended to all people traveling abroad assuming that
more taxpayers would have obtained their tax ID numbers by then,” he said.

Currently, those without NPWPs have to pay Rp 2.5 million (US$280) when traveling abroad by air and
Rp 1 million by sea.

Travelers with NPWPs need only show copies of their NPWP cards, passport, boarding pass and family card for spouses and for children under the age of 21.

Children older than 21 can continue to use their parents’ NPWP as long as they remain listed on the family cards.

Iqbal said the decision to abolish the exit tax would not discourage the people from registering as taxpayers, because the NPWP would be still needed for other business purposes.

Currently there are several groups exempted from paying the exit tax, including foreigners who stay in Indonesia for less than 183 days in a 12-month period, diplomatic officials, representatives of international organizations, pilgrims and Indonesian migrant workers.  (ebf)

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