Taxable Person

CONSOLIDATION OF LAW OF THE REPUBLIC OF INDONESIA NUMBER 7 OF 1983 CONCERNING INCOME TAX AS LASTLY AMENDED BY LAW NUMBER 17 OF 2000 CHAPTER II TAXABLE PERSON

Article 2

(1) Taxable person consists of:
a. 1) an individual; 2) an undivided inheritance as a unit in lieu of the beneficiaries;
b. an entity;
c. a permanent establishment.

(2) Taxable person comprises of resident and non-resident Taxpayer.

(3) The term “resident Taxpayer” means:
a. an individual who resides in Indonesia or is present in Indonesia for more than 183 (one hundred and eighty-three) days within any 12 (twelve) month period, or an individual who in particular taxable year is present and intends to reside in Indonesia;
b. an entity established or domiciled in Indonesia;
c. an undivided inheritance as a unit in lieu of the beneficiaries.

(4) The term “non-resident tax payer” means:
a. an individual who does not reside in Indonesia or is present in Indonesia for not more than 183 (one hundred and eighty-three) days within any 12 (twelve) month period, and an entity which is not established or domiciled in Indonesia conducting business or carrying out activities through a permanent establishment;
b. an individual who does not reside in Indonesia or is present in Indonesia for not more than 183 (one hundred and eighty-three) days within any 12 (twelve) month period, and an entity which is not established or domiciled in Indonesia deriving income from Indonesia other than from conducting business or carrying out activities through a permanent establishment.

(5) A permanent establishment shall be an establishment used by an individual who does not reside or is present in Indonesia for not more than 183 (one hundred and eighty-three) days within any 12 (twelve) month period, or by an entity which is not established or domiciled in Indonesia in the form of, among others:
a. a place of management;
b. a branch;
c. a representative office;
d. an office;
e. a factory;
f. a workshop;
g. a mining and extraction of natural resources, drilling used for mining exploration;
h. a fishery, animal husbandry, farm, plantation or forestry;
i. a construction, installation or assembly project;
j. the furnishing of services through employees or other personnel, if conducted for more than 60 (sixty) days within 12 (twelve) month period;
k. an individual or an entity acting as a dependent agent;
l. an agent or employee of an insurance company that is not established or domiciled in Indonesia if it collects premiums or insures risk in Indonesia.

(6) The residence of an individual or the domicile of an entity shall be determined by the Director General of Taxes according to the real situation.