Registered with Family Office, Foreigners Excluded as Tax Residents

JAKARTA, DDTCNews – Through Law (UU) 6/2026, the government has officially introduced a number of tax facilities to support the establishment of the Indonesia International Financial Centre (IIFC).

One such facility takes the form of an exemption from classification as tax residents (subjek pajak dalam negeri/SPDN in Indonesian). Pursuant to Law 6/2026, the exclusion from tax resident status is granted to foreign nationals (warga negara asing/WNA in Indonesian) who fulfil certain conditions and qualifications.

"The income tax facilities...shall only apply to: a. income derived from the IIFC; and b. entrepreneurs, professionals and non-tax residents...who fulfil certain qualifications," reads Article 48 paragraph (4) of Law 6/2026, as cited on Thursday (5/11/2026).

In greater detail, Article 53 of Law 6/2026 sets out 3 conditions that must be satisfied for a foreign national to be exempt from classification as a tax resident. First, registered with a family office at the IIFC.

Second, obtaining a golden visa facility at the IIFC. Third, not receiving or accruing income derived from active business activities or working for entrepreneurs, at the IIFC or outside the IIFC, in the territory of Indonesia.

All 3 conditions are cumulative and must therefore all be satisfied. If these conditions are fulfilled, the foreign national will not be classified as a tax resident. However, this special treatment applies only for so long as the relevant foreign national's golden visa remains valid.

The golden visa is one of the facilities offered by the government at the IIFC. This facility is intended to attract investment to the IIFC and to make Indonesia a second home for Ultra High Net Worth Individuals (UHNWIs) from abroad.

The granting of a golden visa is based on certain qualifications, including the size of the investment value, specific expertise and foreign nationals registered with a family office in the IIFC. Detailed provisions regarding the golden visa will be regulated by an IIFC council regulation.

For information, a foreign national may be classified as a tax resident if they fulfil certain criteria set out in the Income Tax Law, MoF Reg. 18/2021 and PER-23/PJ/2025. Under these 3 regulations, a foreign national may be classified as a tax resident if they meet any one of the following 3 criteria:

1. Residing in Indonesia. A foreign national is deemed to reside in Indonesia if that individual:
   • resides at a place in Indonesia that is: controlled or available for use at any time; owned, rented or available for use; and not used as a place of transit by that individual;
   • has a center of vital interests in Indonesia, used by the individual as the centre of personal, social, economic and/or financial activities or affairs in Indonesia; or
   • carries out habitual or daily activities in Indonesia, including activities that constitute hobbies or pastimes;
2. Being present in Indonesia for more than 183 days within a 12-month period. The 183-day period is determined by calculating the length of time the individual tax subject has been present in Indonesia within a 12-month period;
3. Being present in Indonesia within a tax year and intending to reside in Indonesia. An individual is deemed to intend to reside in Indonesia if evidenced by documents in the form of:
   • a permanent stay permit card (Kartu Izin Tinggal Tetap/KITAP in Indonesian);
   • a limited stay visa (Visa Tinggal Terbatas/VITAS in Indonesian) with a validity period of more than 183 days;
   • a limited stay permit (Izin Tinggal Terbatas/ITAS in Indonesian) with a validity period of more than 183 days;
   • a contract or agreement to perform work, business or activities carried out in Indonesia for more than 183 days; or
   • other documents capable of demonstrating an intention to reside in Indonesia, such as a residential lease contract for more than 183 days or documents evidencing the relocation of family members.

If any one of these 3 criteria is satisfied, the individual will be classified as a tax resident even if they are a foreign national. The existence of the exemption facility means that foreign nationals registered with a family office, holding a golden visa and not receiving income from active business activities or employment in Indonesia, will not be classified as tax residents. (rig)