New Bali Digital Nomad Visa- Tax Considerations

In exciting news for remote workers, The Indonesian Government has announced that it is finalising plans for a new Digital Nomad Visa, which may allow expats to work remotely in Bali for up to 5 years tax-free in Indonesia.

Indonesia’s Minister of Tourism and Creative Economy, Sandiaga Uno, made the announcement during a press briefing , noting that the much-anticipated Indonesian Digital Nomad Visa was entering its final stages of preparation and would soon be open for applications. See more here.

This is clearly great news for Australian expats looking to relocate to Bali on a long-term basis. The proposed 5-year visa is longer than comparable digital nomad visas, for example in Portugal.

Australians considering the utilization of the fresh Bali Digital Nomad Visa must give careful thought to the tax consequences specific to Australia.

Some of the issues to consider will be:

1. Have you ceased tax residency of Australia.
2. What are the Single Touch Payroll obligations for the Australian company.
3. If you’re considering working for an Australian organization, are there PAYG withholding and superannuation responsibilities associated with your employment?
4. How to correctly file and complete your Australian tax return- particularly where employment income performed in Bali is not taxable.
5. How should your employment be structured to ensure it is done in the best manner.

Please get us in touch with us for further information.