Our current topic ' Taxation, Retirement and Social Rights for Long'Term Immigrants' what a mouthful, Leo! Hehe! Are we talking tax havens or social safety nets today?
Hahaha! Mira, you always know how to make taxes sound like a party! Well, think of it as figuring out where you can retire and still afford to have that morning coffee... or afternoon beer. Ahhh!
Ooh! Both sound equally essential! Let's start with Indonesia how does the land of a thousand islands treat our longterm stayers when it comes to the taxman?
Hmm! In Indonesia, if you're a foreigner with a KITAS or KITAPthose are limited stay or permanent stay permitsyou're generally taxed on income sourced in Indonesia. Wow! So, if you're earning Rupiah, the taxman cometh!
Rupiahs and regulations it sounds like a fun combo! What about the rates? Are we talking "takeallyourcoconutmoney" high, or something more beachbum friendly? Hehe!
Well, Indonesia uses a progressive tax system, so the more you earn, the higher the percentage. Hmm! It can range from 5% to 35%, depending on your income bracket. Whoa! Don't forget to factor in any tax treaties your home country might have.
Tax treaties, the superheroes of international finance! So, if you’re planning to sip Bintangs on Bali and earn a living, best check those fine prints! Ooh! What about retirement perks in Indonesia for expats?
Retirement in Indonesia as an expat? It's more about lifestyle than governmentsponsored benefits. Ahhh! Many retirees enjoy lower living costs, but you'll need private health insurance and a solid savings plan.
So, picture this: sunset yoga, affordable villas, but DIY healthcare! Not bad if you're into managing your own Zen zone, but what about social security? Does Indonesia offer any social safety nets? Hahaha!
Social security in Indonesia, or BPJS, is primarily for Indonesian citizens and longterm residents with a work history. Hmm! As an expat, it's less accessible unless you’ve been a formal employee.
So, it’s more like, make your own safety net out of beach towels and good vibes! Ahhh! Got it. Now, let's hop over to the Philippines land of smiles and jeepneys what's the tax scene there for longterm expats?
Ah, the Philippines! Well, if you're a resident alien meaning you've been living there for more than 180 days a year you're taxed on income earned within the Philippines. Ooh!
So, if you’re teaching English, running a beachside bar, or just enjoying the island life, Uncle Sam… I mean, Uncle Philippines wants his share! Hehe! What kind of tax rates are we looking at?
The Philippines also has a progressive tax system with rates ranging from 0% to 35%. Hmm! Like Indonesia, it depends on your income level. Wow! Make sure you keep good records; bureaucracy can be a bit like navigating a Manila traffic jam!
Manila traffic and tax forms sounds like an adventurer's nightmare, or a comedian's dream! What about retirement in the Philippines? Is it more about coconut savings or government benefits? Hahaha!
Retirement in the Philippines can be quite attractive due to the lower cost of living and the warm climate. Ahhh! However, expats generally rely on personal savings and investments, as social security isn’t easily accessible.
So, it’s back to the personal responsibility card! Plan ahead, save those pesos, and maybe invest in a mango farm for extra income! What about social security in the Philippines, any perks there? Ooh!
The Social Security System or SSS is primarily for Filipino citizens and legal residents who have contributed. Hmm! As an expat, it's unlikely you'll be eligible unless you've been formally employed and contributing.
So, again, build your own safety net! Maybe a network of friendly locals who can offer you adobo and advice! Hahaha! What would you say is the biggest difference between the two for longterm expats?
Probably the ease of access to social security benefits. Ahhh! Both rely heavily on your personal planning but Spain's EU framework offers some standardization that Turkey lacks. Ahhh!
Standardized systems versus createyourownadventure I'm sensing a theme here! If our listeners are thinking of relocating to either, what's the one big thing they need to keep in mind about taxes and social rights? Aha!
I’d say, consult a local tax professional in both countries. Ahhh! Laws change, interpretations vary, and you don't want to end up paying more than you have to… or worse, getting into trouble. Ouch!
Wise words, Leo! So, whether it’s Bali Bintangs or Manila mangos, make sure your financial ducks are in a row! Hahaha!
Indeed! Nothing ruins a paradise vacation like a tax audit. Hehe!
Unless you can turn that tax audit into standup material, Leo. Hahaha! This podcast is supported by jetoff.ai by the way, folks!
Ahhh! That's right! Check out jetoff.ai for more details on all these destinations and more! Wow!
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Don't forget to leave a comment too, to let us know which countries you'd like to see compared next! Ooh!