I'd like to be reassured that the Internet infrastructure is fit for purpose, and also that the Government don't intend to keep switching off the Internet when there's an election, exam season etc.
“Tax free” is deceptive, if it’s only referred to foreign sourced income. Income from any work is considered sourced where the work is performed, so this would only apply to foreign passive income (e.g. dividends or capital gains). And I’m not familiar with CFC-like rules in Indonesia but I guess they also apply some kind of economic substance requirement for a tax resident to own a company incorporated somewhere else and whose only purpose isn’t tax optimization.
And it only refers to taxes paid to Indonesia. US citizens still have to pay federal tax to the US (every country is different, but the US is unusually harsh in this regard).
US citizens can take comfort that they are in the company of Eritrea, the only other country that has citizenship-based taxation. And theirs is only 2%, but they enforce it by jailing your relatives if you don’t pay.
Maybe I read the article incorrectly, but it specifically states that income derived from foreign businesses is tax-free. So this should include any freelance work or employment with a foreign entity as well as business profits derived abroad. I don't think the "butt in seat" rule applies here.
It is a good idea to bring this up in any case, because there could be other tax implications, especially for Americans unaware that they will be paying tax on income above $108,700.
It doesn't matter where the employer/client is located. Income is taxed _where the work is performed_. If you work in Indonesia that's where your income will be taxed.
"Business profits" are different, since they are generally regarded as dividends distributed to shareholders who (in theory) don't "do work" for the company.
next front in the 'war for talent', countries which have suffered tourism collapse will replace it with digital nomad economy. This move by Indonesia most aggressive so far, expect others to follow
> next front in the 'war for talent', countries which have suffered tourism collapse will replace it with digital nomad economy.
This has been in the works for some time, actually; the need to offset an aging or out of work/underemployed populace has been a thing for some time--COVID just exposed and expedited it's deployment. Personally speaking as a digital nomad, and an obvious bias, it's been a long time coming.
> This move by Indonesia most aggressive so far, expect others to follow
It is the longest lasting one by duration, as Portugal offers 3 year DN visa via D7 and then a 2 year extension, but Portugal has a path to PT (and therefore EU) citizenship after 5 years.
So in terms of interrogation it's hardly the most aggressive where they need a way to offset their debt to GDP ratio (over 100% since 2008 which is coupled with 20+ years of brain drain).
Bali has it's benefits, it's a Low cost of living and an amazing culture and cuisine to explore, but Bali has a reputation much like Boulder: and for those of use who have already spent time there we'd rather 'wait and see' how this plays out. I'm a big fan of Bali, but it's the people who go there that I have an issue with, especially in the age of the enlightened influencer jetting off to Ubud for morning yoga sessions sponsored by Lululemon.
It's pretty gross, and that bastardization has changed the landscape significantly over the years but things like Green School are an example of where things can go right when the funds are re-directed: their curriculum has enviormental entrepreneurialism at it's core. It was always a goal of mine to spend some time there, even if it's just cooking for the kids.
Either way, this is cool, but I'd like to see some more incentives before I decide to pull the trigger as I'm already a DN in the EU.
