Indonesia Tax Rates
Indonesia operates a progressive income tax system with rates from 5% to 35%, administered by the Directorate General of Taxation (DJP). The standard corporate tax rate is 22%, and Indonesia levies an 11% VAT (increasing to 12% in 2025). As Southeast Asia's largest economy, Indonesia has been modernizing its tax system through the Harmonized Tax Law (HPP) of 2021, which introduced a new top income tax bracket and carbon tax provisions.
Top Income Tax Rate
35%
Corporate Tax Rate
22%
VAT / Sales Tax
12%
Capital Gains Tax
22%
Detailed Tax Information
Income Tax Brackets
Indonesia's personal income tax has five progressive brackets from 5% to 35%. The 35% bracket for income exceeding IDR 5 billion was introduced by the HPP Law in 2022. Residents are taxed on worldwide income while non-residents are taxed at a flat 20% on Indonesian-sourced income. A non-taxable income threshold of IDR 54 million per year applies for single individuals (IDR 4.5 million per month), with additional allowances for married taxpayers and dependents.
| Income Range | Tax Rate |
|---|---|
| Rp 0 – Rp 60.0M | 5% |
| Rp 60.0M – Rp 250.0M | 15% |
| Rp 250.0M – Rp 500.0M | 25% |
| Rp 500.0M – Rp 5000.0M | 30% |
| Rp 5000.0M+ | 35% |
Corporate Tax
Indonesia's standard corporate income tax rate is 22%. Publicly listed companies with at least 40% of shares traded on the Indonesia Stock Exchange and meeting certain shareholder diversification requirements qualify for a 3-percentage-point reduction (effective 19%). SMEs with annual gross turnover up to IDR 4.8 billion can opt for a 0.5% final tax on gross turnover (valid for 3-4 years). Small enterprises with turnover up to IDR 50 billion receive a 50% discount on the tax rate applied to the portion of income corresponding to IDR 4.8 billion of turnover.
Standard Rate
22%
Small Business Rate
11%
Capital Gains Tax
Capital gains are generally included in taxable income and taxed at the standard corporate (22%) or progressive individual rates (5-35%). However, gains from the sale of shares on the Indonesia Stock Exchange are subject to a 0.1% final tax on gross transaction value. Land and building transfers are subject to a final tax of 2.5% of gross transfer value. Non-resident capital gains on shares are subject to 20% withholding tax, reducible under tax treaties.
Rate
22%
VAT / Sales Tax
Indonesia's VAT rate increased to 12% effective January 2025, initially applied to luxury goods, with the standard rate for most goods and services following. The rate was previously 11% (increased from 10% in April 2022). Exempt supplies include basic necessities, healthcare, education, social services, and financial services. The government implemented a simplified 1-2% final VAT scheme for qualifying small businesses. Indonesia has extended VAT to digital services provided by foreign companies since 2020.
Standard Rate
12%
Cryptocurrency Tax
Indonesia imposes a 0.1% income tax (final) on crypto asset transaction values, plus 0.11% VAT on crypto trades conducted through registered exchanges. For transactions on unregistered exchanges, the rates double to 0.2% income tax and 0.22% VAT. These final taxes apply to the transaction value regardless of profit or loss.
Tax Treaties
Indonesia has approximately 71 double taxation agreements in force. These treaties provide reduced withholding rates and relief from double taxation. Indonesia typically negotiates treaties following the UN Model Convention. The country has signed the Multilateral Convention on Mutual Administrative Assistance and participates in the OECD BEPS Inclusive Framework.
Treaty Network
71
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Indonesia
See how much you could save by moving here from your current country.
+$15K
Tax in United States
$24K
24.4% effective
Tax in Indonesia
$9K
9% effective
You Save
63.1%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
