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Immigration recently deported a Dutch woman (58) with the initials of DMDG from Bali because she used her retirement KITAS for starting and operating an internet business.
Her company offered website development services which the local authorities considered as working which is illegal when staying in the country with a retirement KITAS.
Find out what you can and cannot do with a retirement KITAS.
What foreigners can do with a Retirement KITAS
A retirement KITAS is a temporary stay permit limited for retired elders aged 55 and above. A retirement KITAS allows you to live in Indonesia, lease property, and enter or exit the country as often as you want while the KITAS is valid.
You can apply for the KITAS with one-year validity and extend it for a further of four times for a total of five years. After that, you can apply for a retirement KITAP (permanent stay permit) valid for five years without the need to extend each year.
Besides the age limit, other requirements to apply for a Retirement KITAS are:
- Life and health insurance (valid for at least one year)
- Lease agreement (valid for at least one year)
- Hiring a maid or domestic helper in Indonesia
- A monthly pension of at least USD 1,500 or a bank account account statement showing available funds over USD 18,000.
What you cannot do with retirement KITAS which will get you deported from Bali
You cannot work in Indonesia using a retirement KITAS
The Dutch woman misused her retirement KITAS by working in Indonesia. Instead of warning letters and fines, she was immediately deported from Bali.
To stay and work legally in Bali, you cannot use a retirement KITAS. You will need to have a KITAS sponsored by an entity registered in Indonesia.
Only director, commissioner, manager, or advisory roles qualify for a working KITAS. The work permit defines the details of your job title and location.
With a work KITAS, the stay duration depends on your job title. Directors and commissioners can stay for 12 months. You can renew it annually for five times. You will then need to cancel your KITAS and apply again.
The duration depends on the immigration officials’ decisions for advisors and managers. You may get an extendable 12-month or a non-extendable 6-month KITAS. Overstaying without extension can also cause immigration to deport you from Bali and affect your chances of re-entering Indonesia.
You cannot create and conduct a business in Indonesia using a retirement KITAS
The Dutch woman in question did what many foreigners in Bali do formally or informally – she ran an internet business without considering whether the activity is allowed with her KITAS or not.
In order to start a business and earn revenue in Indonesia you must set up a foreign-owned company (PT PMA).
You become an Indonesian tax resident while on a retirement KITAS
Any foreign nationals who stay in Indonesia for more than 183 days during 12 months must report their taxes.
Having a retirement KITAS with one-year validity makes you a tax resident in Indonesia. You will need to report your global personal income and pay taxes in Indonesia.
Fill in the form below to register for a retirement KITAS or know more on how you can avoid deportation from Bali using such KITAS.
