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A recent article in the Bali Advertiser announcing that Indonesian Citizens and Foreign residents in Indonesia are now exempted from paying the mandatory Rp. 1 million fiscal fee (approximately US$109.00) each time they departed Indonesia for a neighboring ASEAN country has been quashed by local tax authorities.

In a formal circular announcement (Peng-4/WPJ.17/2007), the Directorate General of Taxation for Bali has repudiated the news carried in the Bali Advertiser, reminding all that there has been no change in the current regulations that require all Indonesians and foreigners resident in Indonesia to pay Rp. 1 million each time they depart internationally from Bali’s airport. The payment, or fiskal, is an advance payment on income tax and can be credited against final tax liability. According to the current tax code, any foreigner spending more than 183 days in the Country in a single year is deemed a resident under the terms of the law requiring the fiskal payment.

Certain special categories of travelers are exempted from paying the fiskal fee, including expatriate Indonesians making a yearly visit home and those traveling on official missions abroad.

Indonesia has been under pressure for a number of years from neighbor ASEAN countries who view the fiscal charge as an artificial barrier to both trade and tourism.

Source: www.balidiscovery.com