Form 5472 for Indonesia and Bali Residents with a US LLC

An Indonesian resident who owns a US single-member LLC, including a foreigner living in Bali, must file Form 5472 with a pro forma Form 1120 for each year the LLC had a reportable transaction with the owner. The US-Indonesia treaty is in force and Indonesia issues a personal tax number, the NPWP, but neither changes the filing.

Bali produces an unusual concentration of US LLC owners. Agency operators in Canggu, course creators in Ubud and consultants in Seminyak form Wyoming or Delaware LLCs because Stripe, PayPal and US business banking open far more easily behind a US entity, and because US and European clients prefer to pay a US company. Indonesian citizens running export businesses from Jakarta do the same.

Two features of the Indonesian position change the mechanics of the filing compared with a UK or Indian owner. There is a treaty in force, which owners misread as a filing exemption. And whether you hold an NPWP turns on your own tax status in Indonesia, so two neighbours on one Canggu street can correctly make different entries in the same box. Neither feature removes the obligation.

If you would rather have the filing done than explained, we prepare and fax the complete package from $149.

Do Indonesia and Bali residents have to file Form 5472?

Yes, on the same terms as any other non-US owner. Three conditions have to be met:

1. The LLC is a US disregarded entity: a single-member LLC that has not elected corporate treatment.
2. Its sole member is a non-US person: an Indonesian citizen, or a foreign national in Bali, who is not a US citizen, green card holder or US tax resident.
3. There was at least one reportable transaction during the tax year between the LLC and its owner or another foreign related party.

Treasury Regulation § 1.6038A-1 creates the duty. For tax years beginning on or after 1 January 2017, a foreign-owned US disregarded entity is treated as a corporation separate from its owner solely for the § 6038A reporting rules. Nothing in that rule turns on where the owner lives, or on whether a treaty exists.

Reportable transactions are money, property or services moving between you and your own LLC: capital contributions in, distributions out, loans in either direction, and payments for goods or services. Customer revenue is not a reportable transaction. A Stripe payout from a European client does not go on the form; a transfer from that balance into your personal Bank Mandiri or BCA account does. Our guide to customer payments and foreign-source income explains the distinction.

The IRS Instructions for Form 5472 state that a $25,000 penalty may apply for failure to file when due and in the prescribed manner, for a substantially incomplete form, or for failure to maintain required records, and that a substantially incomplete Form 5472 constitutes a failure to file.

Does the US-Indonesia tax treaty change anything?

There is a treaty, it is in force, and it changes nothing at all about Form 5472.

Indonesia appears on the IRS list of United States income tax treaties, which links the 1988 convention and its technical explanation. Indonesia's own tax authority, the Direktorat Jenderal Pajak, records the convention with the United States as signed on 11 July 1988, entering into force on 30 December 1990 and taking effect from 1 January 1991, as amended by the 1996 Protocol, with its status listed as effective.

A treaty allocates taxing rights over income between two countries. Form 5472 is an information return under IRC § 6038A, and the treaty text says nothing about information returns, so it grants no exemption from one.

What goes in the FTIN box if you have an Indonesian NPWP?

Put your NPWP in the FTIN block if you hold one, write "None" if you do not, and enter a self-assigned reference ID number either way.

Indonesia's personal tax number is the Nomor Pokok Wajib Pajak, shortened to NPWP. The Direktorat Jenderal Pajak describes it as the number given to a taxpayer as the means of tax administration, and each taxpayer is given only one.

The format depends on who you are. Under the Minister of Finance regulation published by the DJP on NPWP for individual, corporate and government-agency taxpayers, an individual taxpayer who is a resident (penduduk) — which Minister of Finance Regulation 112/2022 defines as an Indonesian citizen or a foreigner residing in Indonesia — uses their Nomor Induk Kependudukan (NIK) as their NPWP, activated by the Directorate General of Taxes. A non-resident individual taxpayer, along with entities and government agencies, is given a 16-digit NPWP instead.

Three entries to avoid. A KITAS number or passport number is not a tax identification number. A company NPWP issued to an Indonesian PT or PT PMA belongs to that company, not to you. And do not apply for a US ITIN purely to fill this box: the reference ID mechanism exists for owners without a US number. Our FTIN and reference ID guide covers the mechanics.

For the Part II address, use your actual address in Indonesia, not the LLC's US registered agent address.

Does Indonesian tax affect the US filing?

No. Indonesian personal tax and the US information return run on separate tracks.

Indonesian tax residency is settled by Directorate General of Taxes regulation PER-23/PJ/2025 on the determination of resident and non-resident tax subjects, dated 9 December 2025, issued under the Income Tax Law (Law No. 7 of 1983, as most recently amended by Law No. 6 of 2023) and Minister of Finance Regulation No. 18/PMK.03/2021. Article 3 treats an individual as a resident tax subject where the individual resides in Indonesia, or is present in Indonesia for more than 183 days within any 12-month period, or is present during a tax year and intends to reside there.

Two details matter to remote workers. The regulation lists documents that can evidence an intention to reside in Indonesia, and a limited stay visa (VITAS) or limited stay permit (ITAS) valid for more than 183 days is among them, so a one-year permit such as the E33G remote-worker KITAS is not neutral evidence. And a resident tax subject's obligation is framed by reference to income received or obtained from Indonesia as well as from outside Indonesia, above the non-taxable threshold. Indonesia taxes its resident individuals on a worldwide basis.

Indonesian tax may therefore reach the profit of a US LLC, and the US information return is still due on top. We cannot tell you your Indonesian position: take that to the Direktorat Jenderal Pajak's own guidance or an Indonesian tax consultant.

Which movements does a Bali agency owner report?

Assume a designer runs a branding agency from Canggu through a Wyoming single-member LLC, with a US business bank account, clients paying by card, and monthly transfers out to a personal Indonesian account. Conversions use the US Treasury Bureau of the Fiscal Service Treasury Reporting Rates of Exchange, which published 1 USD = IDR 16,649.99 for the quarter ended 31 December 2025.

USD 88,000 moved through the LLC without being reportable, because revenue from customers and payments to unrelated suppliers are transactions with the outside world. USD 34,200 is reportable, because each of those three movements crossed the boundary between the owner and the owner's own LLC. An owner who reports the revenue and omits the drawings has the form backwards. Our currency conversion guide covers rate selection; state your basis in the Part V statement and apply it consistently.

How does an Indonesia-based owner actually file?

The filing cannot be e-filed.

1. Prepare the pro forma Form 1120. Write "Foreign-owned U.S. DE" across the top of page 1. Only the LLC's name and address and items B and E are required, and the form is signed.
2. Prepare Form 5472. Part I identifies the LLC, Part II identifies you with your Indonesian address and your NPWP or "None" plus a reference ID, Part III covers the related party, Part IV covers listed monetary transactions including loans, and Part V carries an attached statement itemising contributions and distributions.
3. Convert every rupiah figure to US dollars at a reasonable rate for the transaction date, applied consistently, and record the basis used.
4. Fax to 855-887-7737, or mail to Internal Revenue Service, 1973 Rulon White Blvd, M/S 6112, Attn: PIN Unit, Ogden, UT 84201.
5. Keep the timestamped transmission receipt. The IRS sends no acknowledgement, and the receipt is transmission evidence, not IRS acceptance of the return.

The regular due date for a calendar-year entity is generally 15 April, and Form 7004 extends it using the special instructions for a foreign-owned DE. Dates are in our deadline guide.

Getting it filed from Bali

We prepare the complete package — Form 5472 with the FTIN and reference ID handled correctly, the pro forma Form 1120, and the Part V supporting statement — have it reviewed by a qualified tax accountant, and fax it to the IRS Ogden PIN Unit, returning the timestamped confirmation receipt. Late years include a reasonable cause cover letter.

$149 standard, ready in 5-7 business days. $199 express, ready within 3 business days. +$99 per additional past tax year. IRS fax delivery included.

We are not a CPA firm, and we do not give tax advice on US or Indonesian tax. We prepare and submit the US information return accurately.

Start your filing — about 15 minutes.

Frequently asked questions

Do I file Form 5472 if my LLC's income is already taxed in Indonesia?

Yes. Form 5472 is an information return, not a tax return, and paying Indonesian tax on the same profit does not satisfy it. If money moved between you and your US LLC, the filing is due.

Is there a US-Indonesia tax treaty, and does it exempt me?

There is a treaty, in force since 30 December 1990 and effective from 1 January 1991, as amended in 1996. It allocates taxing rights over income and says nothing about information returns, so it grants no exemption.

What do I put in the FTIN box as a foreigner living in Bali?

Your NPWP, if Indonesia has issued you one. If not, write "None" rather than leaving the field blank, and enter a self-assigned reference ID number on line 4b(2). Never enter a KITAS or passport number.

Does the remote-worker KITAS (E33G) affect my Form 5472?

No. Indonesian immigration's page for visa index E33G, the Visa Rumah Kedua Pekerja Jarak Jauh, describes a one-year, extendable stay for people working for a company abroad, with proof of at least US$60,000 in annual income. Immigration status is not a Form 5472 trigger.

Do my client payments into the LLC go on the form?

No. Revenue from customers is not a reportable transaction, whoever the customer is. What is reportable is what moves between you and your own LLC: contributions, distributions, loans, and payments for goods or services.

Will a 12-month KITAS make me an Indonesian tax resident?

Possibly, and that is an Indonesian question. Regulation PER-23/PJ/2025 lists a limited stay permit valid for more than 183 days among the documents that can evidence an intention to reside in Indonesia. Ask an Indonesian tax consultant.

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Living in Bali changes the currency and the tax number, not the US information return. If money moved between you and your LLC, Form 5472 is due for that year.

File from Indonesia in about 15 minutes, or read first about why customer payments are not reportable.

Splitting the year across several countries? The Form 5472 guide for digital nomads covers filing when you have no single tax residence.

Educational content only; not tax or legal advice.