Corporate Income Tax

• 25 percent on all income (normal rate)
• a 5 percent lower than normal rate is applied to a Limited Company of which at least 40 percent of its shares are traded on the stock exchange market (IDX)
• a 50 percent deduction from the normal rate is applied to companies with a gross turnover up to IDR 50 billion

VAT (Value Added Tax)

• Input and Output mechanism
• The current rate is 10 percent

Withholding tax

for payments to residents 

• Withholding taxes are considered corporate tax prepayments
• 15 percent for interest, dividends and royalties
• 2 percent for services
• 10 percent for land and building rental (final tax)
• Withholding tax calculated on sales/revenue is considered a final tax

Withholding tax

for payments to non-residents     

20 percent according to the domestic law, but can be reduced by using tax treaty provisions, or exempt for services that qualify as business profits

Individual Tax

the following progressive rates are charged to taxable annual income

• Up to IDR 50 million, tax rate applied is 5 percent
• Over IDR 50 million to IDR 250 million, tax rate applied is 15 percent
• Over IDR 250 million to IDR 500 million, tax rate applied is 25 percent
• Over IDR 500 million, tax rate applied is 30 percent

Tax Losses

Can be carried forward for 5 years