In cross-border situations, a conflict may arise when a taxpayer is simultaneously treated as a Resident Taxpayer under Indonesian domestic law (PER-23/PJ/2025) and as a tax resident by a treaty partner country under an applicable Double Tax Treaty (DTT).

To resolve such conflict, the Directorate General of Taxes (DGT) has issued PER-23/PJ/2025, which regulates the procedures for determining Non-Resident Taxpayer (SPLN) status, particularly for Indonesian citizens residing overseas.

This regulation is crucial as it determines whether an individual continues to be treated as an Indonesian Resident Taxpayer (SPDN) or qualifies as a Non-Resident Taxpayer.

Key Requirements for Indonesian Citizens to Qualify as Non-Resident

To be recognized as a Non-Resident Taxpayer (SPLN), an Indonesian citizen must fulfil the following requirements:

  • Recognized as a Tax Resident in Another Country
    The individual must be treated as a domestic tax subject in another jurisdiction.

    Required Supporting Document:
    A Certificate of Domicile (CoD) or equivalent document issued by the foreign tax authority.

    Formal Requirements of the CoD:
    • Must be written in English
    • Must state the taxpayer’s name
    • Must include the issuance date
    • Must specify the validity period
    • Must be signed by an authorized official

  • Formal Recognition by the DGT
    The individual must obtain a Certificate Confirming Eligibility as a Non-Resident Taxpayer, issued by the Director General of Taxes.

    Prerequisite:
    All outstanding Indonesian tax obligations during the period as a Resident Taxpayer must have been fully settled.

    Important Administrative Deadline
    An application for Non-Resident status must be submitted no later than 6 months after the validity period of the Certificate of Domicile expires.

    Examples:
    Case 1 – CoD with Validity Period
    If the CoD is valid until 31 December 2024, the application must be submitted no later than 30 June 2025.

    Case 2 – CoD Without Validity Period
    If the CoD is issued on 22 May 2025 without specifying a validity period, the issuance date is deemed as the end of the validity period.
    Therefore, the application must be submitted no later than 22 November 2025.

    Special Case: Dual Residency Conflict

    In situations where an individual is considered a Resident Taxpayer under Indonesian domestic law (PER-23/PJ/2025) and is also treated as a domestic tax resident by a treaty partner country, a dual residency situation may arise.

    In such cases, the final tax residency status will be determined based on the Tie-Breaker Rule under the applicable Tax Treaty between Indonesia and the relevant Treaty Partner.

    PER-23/PJ/2025 provides clearer procedural guidance but requires strict administrative compliance, particularly regarding:
    • Properly issued and valid Certificate of Domicile
    • Settlement of domestic tax obligations
    • Timely submission of application
    • Potential dual residency considerations

Have you determined your current Indonesian tax residency status?

Read more :
PER. 23-PJ-2025 - ENG
PER. 23-PJ-2025 - IND

Attachments :
PER. 23-PJ-2025 - Penentuan SPDN & SPLN