I am a loan officer and I need to verify income. I have a client who works in Indonesia. He says that he gets paid cash and that the country doesn't have an income tax system or W2s like the US does. Any experience with this?
Other - Taxes - 2 Answers
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1 :
They sure do, and pretty heavy ones at that. Here's a link that might give you some insight: http://www.expat.or.id/info/individualincometaxes.html The exchange rate is about US$ 1 = IDR 9,300.00 or about UK£ 1 = IDR 17,300 There are also Social Security taxes of around 10% and VAT at 10%.
2 :
I live in Indonesia and as I know we have tax system but the government doesn't cut the tax automatically from peoples salary. people need to report they income and get NPWP (ticket to pay tax). Our government do aggressive sosialization about this on the television.
