Let's discuss taxation, retirement, and social rights for long-term immigrants in Indonesia and Palau.
Sounds… challenging. I'll focus on the complexities.
It's crucial if you're considering relocation. Imagine retiring only to face significant tax liabilities.
Precisely! Indonesia, with its volcanoes and Komodo dragons, also has intricate tax laws. What's the situation for long-term immigrants?
As a "resident taxpayer" (staying over 183 days annually), you're taxed on your worldwide income.
They tax everything? My stand-up earnings, podcasts… even my coffee fund?
Essentially, yes. Indonesia employs a progressive tax system; higher earnings mean higher rates, up to 35%.
That's steep. Retirement? Can I relax in Bali without selling coconuts?
Indonesia offers BPJS Ketenagakerjaan, a social security system with employer and employee contributions. Benefits exist but aren't substantial.
Saving is key then. Healthcare? Is coverage provided if I consume questionable street food?
BPJS Kesehatan, a universal healthcare program, generally requires enrollment for long-term residents. Affordability varies, particularly outside major cities.
Understood. Now, Palau – a seemingly idyllic island nation. Are the tax laws equally relaxed?
While visually tranquil, Palau still has taxes.
Enlighten me. Are they lenient or harsh?
Unlike Indonesia, Palau only taxes income earned within the country.
So, offshore income is safe? What are the rates for income earned in Palau?
Palau uses a progressive system, but rates are generally lower than Indonesia's, topping out around 12%.
Much better! Retirement prospects in this paradise?
Palau lacks a comprehensive social security system. A government employee pension fund exists, but it doesn't cover everyone.
Self-reliance is crucial for retirement. Healthcare? If I injure myself spear fishing?
Healthcare is limited. Koror's hospital exists, but serious issues may require evacuation to Guam or the Philippines.
Important considerations. Palau offers stunning beauty and lower taxes but limited retirement and healthcare support.
Exactly. We've provided an overview. Remember, we're not providing financial advice.
We're comedians discussing taxes. Consult a tax professional for personalized guidance.
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