Thinking of moving

5 posts  |  Started 3 years ago by Robdog  |   Latest reply from Robdog  |  

1. Robdog
   Member

   Hi there everyone,I am thinking of moving to Bali permantly and would like to know how my income from my business in Australia is taxed ?
   An accountant has told me I may be taxed as high as 70% for living
   in Bali andrecieving an income from Australia?.
   Does anyone here recive income from Australia? and how is it taxed.
   I know very boring topic , sorry.
   Oh and yeah should I buy a villa or rent ?
   By the way I have only been coming to Bali for 2 years and am already married to a local and this will be my 14th trip.

   Posted 3 years ago #

2. bele
   Member

   An'accountant' told you that? From which country? I don't think it is correct.
   If you are considering making Bali your home you should consider whether you will claim non-resident status in Australia. You should talk to a tax accountant in Australia about the pro;s and con's
   Be aware that in later years, you will not be eligible for the pension or social security if you live permanently in Bali.
   I can't see how you would even be registered as a tax payer in Indonesia if you are not working there or earning any income in Indonesia. I do recall reading that Indonesia and Australia have reciprocal tax agreements, again check with a professional, but that would mean that because you have already paid tax in Australia, you don't pay again in Indonesia.
   On the rent/buy question, RENT FIRST. You have not lived in Bali I assume, and living there is very different from visiting. Renting will allow you to work out which area you want to live, and is less of a committment if you find you don't like living there.

   Posted 3 years ago #

3. Roger
   Member

   I have been notified by a private Bali business which specializes in retirement visa applications that all persons who have a bank account in Bali must pay 2% of the balance in the account as a tax, this includes Indonesians. If one applies for a HSBC bank account out of the country you will be issued a HSBC credit card which (ostensibly) entitles the card holder to withdraw sums of money from a ATF machine not incurring any taxes. Further if one wishes to purchase higher ticket items such as lease on property HSBC can issue a TT or wire draft or check in the name of the beneficiary not in the name of the account holder, thus avoiding any deposit into a savings account and the 2%.

   Posted 2 years ago #

4. Barrie
   Moderator

   Hi Roger,

   I agree with Bele on this one and rent first. Seriously, it's all nice having your own place but you have all the related costs if anything goes wrong. Candika and I will be looking for a long-term lease and being married to an Indonesian and travelling to Indonesia on a constant basis I was fortunate enough to obtain a bank account with the BCA. I have two other Indonesian B/a's but they were opened during the Soeharto era.

   Posted 2 years ago #

5. Robdog
   Member

   Just wanted to thank Bele , Roger and Barrie very helpful I just got back to Perth on Saturday. Evertime I go it just reinforces my resolve to move.
   I will have to have a long hard think and as advised talk to a tax professional to sort out my Australian business onceagain thank you.

   Posted 2 years ago #

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