Indonesia, up to 5 years of Tax Treaty

2 years of teaching/research tax treaty with unlimited exemption; 5 years of grant and similar tax treaty with unlimited exemption; 5 years of training tax treaty with 2000 $ exemption

Tax treaty for Professors, Teachers, and Researchers

An individual is exempt from U.S. tax on income for teaching or research for a maximum of 2 years from the date of arrival in the United States if he or she:

  • Is a resident of Indonesia immediately before visiting the United States, and
  • Is in the United States at the invitation of a university, school, or other recognized educational institution to teach or engage in research, or both, at that educational institution.

A resident of Indonesia is entitled to this exemption only once. But this exemption does not apply to income from research carried on mainly for the private benefit of any person.

Tax treaty for Training, education, studying and recipients of grants, fellowships, scholarships and awards

An individual who is a resident of Indonesia immediately before visiting the United States and who is temporarily in the United States is exempt from U.S. income tax on certain amounts for a period of up to 5 years. To be entitled to the exemption, the individual must be temporarily in the United States for full-time study at a U.S. university, school, or other recognized educational institution, or for full-time study, research, or training as a recipient of a grant, allowance, or award from either the U.S. or Indonesian Government, a scientific, educational, religious, or charitable organization, or under a technical assistance program entered into by either the U.S. or Indonesian Government. If the individual meets any of these requirements, the following amounts are exempt from tax.

  • All payments from abroad for maintenance, education, study, research, or training.
  • The grant, allowance, or award.
  • Income from personal services performed in the United States of up to $2,000 each tax year.

An individual who is a resident of Indonesia immediately before visiting the United States and is temporarily in the United States only as a business or technical apprentice is exempt from U.S. income tax for a period of 12 consecutive months on up to $7,500 received for personal services.

(Reported from Internal Revenue Service (IRS), US government Publication 901)