If you are going to stay in Indonesia or staying more than 183 days, you have to pay tax. Even if you are just on visit visa, but stay more than 183 days, you must register your tax number or called NPWP. Otherwise limit your stay in Indonesia not more than 183 days.
The law regarding paying tax in Indonesia I think the same thing when you travel to all country. There is a penalty or imprison if you fail to follow the tax regulation.in Indonesia. It is advised to contact the tax consultant if you plan to stay in Indonesia.
You must provide some document to get the tax number or NPWP i.e copy all page of passport, copy of work permit, copy of domicile if you plan to stay or on resident visa, copy employer's tax number if you are working on company. All document must be submitted with completed registration form, and a authorization letter if you hire a tax consultant to register your tax.
Actually hire a tax consultant is the easy way and less headache, but still you have to learn and understand the regulation. Tax regulation always have consequence, i think all country to do the same, that tax officer will check your data and impose whatever on the regulation. They can track your income and have tax or penalty if you hide the information or untrue to the your financial data.
Even if you plan not staying more than a year, because your job not fixed based, better to prepare in advance to arrange the tax payment. This is because to cancel the tax number little bit difficult, although if you follow the regulation everything will be easy. the important is prepare in advance so this tax matter will not hold you back when you move to other place.
It is better to negotiate with your employer if you are on contract regarding the tax payment. Whether employer the one will pay or arrange your tax, and still you have to follow the data to complete your annual tax report or SPT. Usually on the middle on march is the deadline of the annual tax report.
