Individuals as Tax Subjects can reside or be in Indonesia or outside Indonesia. Inheritance that has not been divided as a single unit is a substitute tax subject, replacing those who are entitled, namely the heirs. The designation of an undivided inheritance as a substitute Tax Subject is intended so that taxation on income derived from the inheritance can still be implemented.
Undivided inheritance left by individual domestic Tax Subjects is considered as domestic Tax Subjects within the meaning of this Law following the status of the heir. As for fulfilling tax obligations, the inheritance replaces the obligations of the rightful heirs. If the inheritance has been divided, the tax obligations pass to the heirs.
Undivided inheritance left by an individual as a foreign Tax Subject who does not carry out business or carry out activities through a permanent establishment in Indonesia, is not considered a substitute Tax Subject because the taxation on income received or accrued by the individual in question is attached to the object.
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