Today, we're discussing taxation, retirement, and social rights for long-term immigrants in Indonesia and Israel. This is crucial information for anyone considering relocating.
Absolutely. Let's start with Indonesia. I understand obtaining a NPWP, a tax identification number, is essential for working there.
Correct. Long-term residents are subject to Indonesia's progressive income tax system. The specifics depend on residency duration and income level.
And what about social security or pension plans?
Indonesia offers BPJS Ketenagakerjaan, a workers' social security program covering old-age benefits and work accident insurance. However, many long-term expats rely on private pensions or personal savings.
So, it's not a guaranteed retirement income. Now, let's move to Israel. I've heard new immigrants receive significant tax benefits.
That's true. New immigrants, or "Olim," receive substantial tax exemptions for up to ten years on foreign-sourced income and assets. This incentivizes them to bring their skills and capital to the country.
A ten-year tax holiday! What about after that period?
After ten years, the system becomes more conventional. Israel has a progressive income tax system, a VAT (Ma'am), and a comprehensive National Insurance Institute (Bituach Leumi). This provides a broad social safety net, including healthcare, unemployment benefits, maternity leave, and pensions.
Bituach Leumi sounds like a comprehensive system. But contributions are likely significant?
Contributions are mandatory, but in return, you receive universal healthcare and a robust social safety net. This contrasts with Indonesia's model, which emphasizes more individual responsibility with some state support.
One system offers a strong initial incentive, while the other provides a more gradual, built-in safety net. This highlights the differing approaches to social welfare for immigrants. For more in-depth information, visit jetoff.ai.
Indeed. Understanding these differences is vital for long-term planning. It's about knowing where your money goes and what kind of support you can expect.