Foreign workers whose expertise is often considered above the average ability of local workers will certainly have an impact on national development. If the aspects of globalization and national development are linked, then in this case foreign workers (expatriates) are also required to carry out their obligations as taxpayers. From a taxation point of view, expatriates have a positive effect on state revenues, because in general the income earned by expatriates is much higher than that of local workers.

Expatriate means a person who lives temporarily or permanently outside the country where he was born and raised, or in other words, a person who is a foreign national who lives in Indonesia, usually because of a state or professional duty.

Broadly speaking, expatriate or expat is a term for workers who work outside the country where they were born. In Indonesia, Foreign Workers are foreign citizens holding visas with the intention of working in Indonesian territory.

Expatriates can have the status as Foreign Tax Subjects (SPLN) or as Domestic Tax Subjects (SPDN). This is determined based on the period of time in Indonesia (time test) which has been determined by the Directorate General of Taxes. Tax rights and obligations related to the determination of this status certainly have differences with domestic taxpayers in general, ranging from the tax rate to be charged, the right to get a reduction in PTKP to the obligation to submit an SPT.

Expatriates are required to have a NPWP if they work in Indonesia for more than 183 days in 12 months so that they are designated as SPDN that have met the subjective and objective requirements in accordance with the provisions of the legislation. Subjective requirements are requirements in accordance with the provisions of Law no. 36/2008, while the objective requirements are requirements for tax subjects who receive or earn income or are required to make deductions or collections in accordance with the income tax law. Taxpayers who do not register to obtain a NPWP may be subject to sanctions in accordance with the provisions of tax regulations, as regulated in Article 39 of Law no. 28/2007, the sanctions given are imprisonment and fines. This shows the seriousness of the state in terms of taking action against violations, especially to expatriate taxpayers, so there is a need for law enforcement in the field of taxation to maintain discipline towards tax obligations in Indonesia.