Acrede Accolade October 2013 Oct. 2013 | Page 12

About Indonesian Payroll As the largest economy in Southeast Asia we take a look at the national specifics of payroll in Indonesia I ndonesia has the largest economy in Southeast Asia and is one of the emerging market economies of the world. The country is also a member of G-20 major economies. Foreign investors are primarily attracted by Indonesia’s wealth of natural resources, its large and cheap labour force and relatively high domestic consumption. Whilst it is understood that there are benefits in Indonesia’s emerging economy, the labour environment is becoming complicated due to the frequent changes to the labour laws and regulations. The following sections of this article present the minimum considerations on understanding the statutory requirements on worker’s compensation. Indonesian tax residents are required to file annual individual tax returns when their total income derived from sources in and out of Indonesia exceed the minimum threshold, which is between IDR24,300,000 for a single individual and IDR32,400,000 for a married individual with three children/dependants effective from 1 January 2013. Non-residents are taxed on income from Indonesia only, at a final flat rate of 20%. Spouses may choose to file ???????????????)Q???????????????????????????Q??)%????????????9????????????????????)???????????????????????????????????)????????????????????????????????????)????????????????????????????????((??()???????)= Q= H?????()Q???????????????????????????????????????)??????????????????????????????????????)??????????????????????????????????????)%???????????????????????????????????????)???????????????????????????????????????????)?????????????????????????????????????????)]?????????????????????????????????????????)???????5?????????????????????????????????)???????????%???????????????????????????)???????????????????????????????????????()M??????M???????]??????)??????)M?????Q??????-???????q)???????t?()Q????????????????????????????????????????)????????????????????????????????)?????????????????????????????????????)????????????????????????????????????????????()????????????????????????????????)??????????????????????????????????)????????????????????????????????????????)???????)???????????????????????????)??????????????????!???????????????()???????????????????????????????????????)??????????????????????????????????)????????????????????????????????????????????)?????????????????%??????????????????????????)????????????????????????????????????????????)??????9A]@??9????A?????]?????A??????()5??????M??????M???????M???????)???????M????)Q??????-???????q)???????t?????????????????????)????????????????????????????????????)??????)??????????????U???????1??????)??????????????????????????????????????)????????)?????????????????????????????????)?????????????????????????????????????()AP?)???????????????????????????????)??????M??????M??????Q???M??????M????????????)??????????????????????????????????)????????????????????????????????????)?????????????????????????????????????)???????????????????????????????????????)??????????????????????????????????)AP?)????????A??????????????????????????????)?????????????????????????????%???????)A??????)-,??)???????-??????????-?????????? ??????(?),??)???????-?????????=??????M??????)!P??)??????)!???Q???????!????? ????)A,??)???????A??????????)-?????????????????????????????????????????((0