If you plan to live and work in Indonesia, it’s essential to understand the differences between the Working KITAS and the Investor KITAS. In this article, we will detail both options to help you make an informed decision.
What is KITAS?
KITAS (Kartu Izin Tinggal Terbatas) is a temporary residence visa that allows foreigners to legally work and live in Indonesia. There are several types of KITAS, but the two most popular are the Working KITAS and the Investor KITAS.
Working KITAS
The Working KITAS is suitable for those who wish to work officially in Indonesia. You can hold high positions such as:
- E25: Commissioner or Executive Director
- E25A: Company Commissioner
- E25B: Company Director
- E25C: Deputy Director
- E25D: General Manager
- E25E: Manager
- E25F: Supervisor
Advantages of Working KITAS:
- Official Employment: With this KITAS, you can legally receive a salary.
- Fees: The Working KITAS is issued for a duration of 1 year and requires a fee of $100 for each month of employment. While this may seem costly, it is justified for many, especially if you seek legal income.
For more information about the Working KITAS, read the article on Working KITAS.
Investor KITAS
The Investor KITAS is intended for those who want to invest in a business in Indonesia. This option may be more beneficial for long-term residency.
Advantages of Investor KITAS:
- Longer Duration: The Investor KITAS is issued for 2 years, allowing you to avoid annual renewals.
- No Monthly Fees: You do not need to pay monthly fees, which can lead to significant savings.
For more information about the Investor KITAS, read the article on Investor KITAS.
Tax Benefits
Working under a Working KITAS allows you to legally withdraw income from your company (PT PMA) as salary. This enables you to optimize tax obligations, as the tax on dividends for PT founders in Indonesia is 10%.
- Tax Savings: If your monthly salary exceeds $1,000, tax savings become noticeable. With a salary of $2,000 or more, the Working KITAS can be more advantageous compared to the Investor KITAS.
How to Choose the Right KITAS?
- Define Your Goals: If you plan to work in Indonesia and hold a high position, the Working KITAS may be the better option.
- Consider Investments: If you want to invest in a business and stay long-term, opt for the Investor KITAS.
- Study Tax Implications: Understanding Indonesia’s tax system will help you save money.
Conclusion
Choosing between the Working and Investor KITAS depends on your plans and needs. Both options have their advantages and disadvantages. It’s crucial to evaluate your situation to make an informed choice.
If you have any questions or need assistance with your KITAS application, feel free to contact us. We are here to help you find the best option for your stay in Indonesia!