Visit your accountant to determine current and future tax liabilities and plan your tax position while you are working in Indonesia
Hidupid – Obtain necessary information related to your tax obligations while living overseas before taking on an overseas work assignment. Your accountant will help you with your tax position for income earned in Indonesia and any country while you are resident in Indonesia including savings and fixed deposit interest, rental income and dividends from stocks and shares.
- Find out about Indonesian individual income taxes to learn more about the situation of local tax and make sure that your contract has a clause that outlines the paying and processing of local taxes.
- Ask your accountant about tax liabilities if you obtain rental income from your principal residence while you are residing in Indonesia.
- Check if the returns are taxable in your home country if you intend to invest funds while you are abroad. Find out if there are any restrictions in repatriating funds back to your home country after your stay in Indonesia.
If any of your dependents that reside with you is receiving a government pension, make arrangements for their temporary stay abroad.
Organize your banking and insurance matters
If any of your country’s banks are operating in Indonesia, find what services can be offered during your time abroad.
If you are using credit cards during your stay, a credit card from your home country may not be practical to use. There will be a loss in exchange rate conversions from your home currency to Indonesian currency. There are also high credit card fraud incidents in Indonesia that you have to protect yourself against. There will be a need to maintain a current credit record in your home country during your stay abroad.
Some companies in Indonesia allow foreign employees to cash cheques from home then transfer funds as needed. This means you may choose to keep your principal bank account in your home country and on a regular basis transfer a set amount of money to a bank in Indonesia.
You also need to review your family’s insurance policies. For every item that you have sold in preparation for your move, its insurance policies must be canceled. Ensure that property remaining in your home country is adequately insured. Formally inform your insurance company everything about your move, especially your departure, the storage conditions of your property and your expected period of absence and adjust the policies accordingly.
Your employer can provide you with information about health and medical insurance benefits during your stay in Indonesia. It is unlikely that health and medical insurance policies taken in your home country will offer coverage in Indonesia. Find out about temporarily suspending your policy and your rights in continuing with your health insurance on return home for short visits and holidays as well as upon your permanent return. You may wish to obtain medical, dental, optical and pharmaceutical benefits you are entitled to before suspending your health insurance.
Inquire about the effects your overseas posting may have on your life, endowment or annuity policies, with your life insurance provider. Ask about the options for premium payments while you are in Indonesia. Assess the possibilities of making annual payments in lieu of any periodic payment you may currently make. If your life insurance company has a branch in Indonesia, you can keep dealing with them.