Indonesia Corporate Income Tax
Detailed corporate income tax rates and rules for Indonesia in 2026.
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%
Additional Notes
Indonesia offers tax holidays of 5-20 years (100% CIT reduction) for pioneer industries with investment above IDR 100 billion. Tax allowances (additional 30% deduction over 6 years) are available for qualifying investments. Special Economic Zones offer additional incentives. Transfer pricing rules follow OECD guidelines, and Indonesia has aggressive audit practices on cross-border transactions.
How Indonesia Corporate Tax compares
Indonesia’s corporate tax rate of 22% is the 114th highest of 203 countries TaxAtlas tracks, below the global average of 22.2% and Asia’s regional average of 19.7%.
