1. Individuals who are present in Indonesia for not more than 183 (one hundred and eighty three) days within a period of 12 (twelve) months, and entities that are not established and are not domiciled in Indonesia, which run business or carry out activities through a permanent establishment in Indonesia;
2. Individuals who do not reside in Indonesia, individuals who are in Indonesia for not more than 183 (one hundred and eighty three) days within a period of 12 (twelve) months, and entities that are not established and do not have their domicile in Indonesia, which may receive or earn income from Indonesia not from running a business or conducting activities through a permanent establishment in Indonesia.

Amir is an Indonesian citizen. He worked in Japan for more than 183 days in a 12 month period. His only income comes from his work in Japan. From his income in Japan, Amir has also been charged and taxed there.

From this case, Amir is no longer a Domestic Tax Subject, so Amir is no longer subject to income tax in Indonesia and no longer needs to report his annual tax return.

Temon is an Indonesian citizen. He worked in Turkey more than 183 days in a 12 month period. From his income in Turkey, Temon has also been charged and taxed there.

Meanwhile, in Indonesia, Temon also earns income from the shophouses he rents. From this case, Temon is categorized as a Foreign Tax Subject. Temon has no obligation to report the Annual Income Tax Return. However, for the shophouse rental income, the tenant must deduct Article 26 Income Tax by 20% from the rental income.