Tax in Indonesia: Things You Probably Don’t Know

Tax in Indonesia: Things You Probably Don’t Know

Taxation is different in each country. It is also true with tax in Indonesia. There are various things that individuals, companies, or investors need to be aware of.  Learn about the types of taxes in Indonesia and top tax consultants to manage them effectively. Expand your knowledge with us!

People Also Read: All About Buying Property In Bali As Foreigners

Tax in Indonesia

We will look at types of Indonesian taxes and continue with the amount of tax any company, investor, and individual needs to comply with.  

Types of Tax in Indonesia


Photo by Indonesia Expat

A wide variety of taxes in Indonesia are, among others, as follows.

  • Corporate income tax
  • Individual income tax
  • Carbon tax
  • Withholding tax
  • Value-added tax 
  • Luxury-goods sales tax
  • Land and building tax
  • Customs and excise
  • Etc.

How Much Is Tax in Indonesia

The following are some tax rates for some of the above-mentioned tax types.

Corporate income tax (CIT)

  • a basic rate of 22% (2022 fiscal year), a reduction of the normal rate of 25%
  • A public company with over 40% of its shares traded on the IDX receives 20%
  • Companies with gross turnovers below IDR4.8 billion are eligible for a 1% rate
  • Companies with a gross turnover below IDR50 billion are eligible for a 12.5% rate

 VAT rate

  • 10%, may increase to 15% or decrease to 5% under government regulation
  • 0 (zero) for export of intangible and taxable tangible goods
  • 0 (zer0) for export of services
  • 11% for most importers, manufacturers, wholesalers, and retailers (from April 2022) and 12% by 2022

Withholding tax

For payment to residents

  • 15% for interests, dividends, and royalties
  • 10% for land & building rental
  • 2% for services

For payment to non-residents

  • 20% for the normal rate 

Luxury-goods sales tax (LGST)

The rates range from 10% to 25%, in which the law allows a maximum rate for LGST up to 200%.

Customs and Excise

The allowable import duties range from 1 to 150%, yet the current highest rate is set at 40% (of the customs value of the imported goods).

As for individual or personal income tax, we will outline further in the section below.

How much is Income Tax in Indonesia?


Photo by vOffice

Indonesia has adopted an international income taxation system. It means that any individual measured as an Indonesian tax resident must pay tax to the government on their income. The income may come domestically or overseas, except a double tax agreement applies. 

Here is the list of individual progressive income tax rates (charged to taxable annual income).

  • 5% for up to IDR50 million
  • 15% for over IDR50 million – IDR250 million
  • 25% for over IDR250 million – IDR500 million
  • 30% for over IDR500 million
  • 35% for over IDR5 billion

This tax also applies to non-resident individuals – a 20% withholding tax on income earned in Indonesia.

Tax Consultant in Indonesia – Top 10

The following are the top 10 tax consultant offices as ranked by Providing professional services in the field of taxation and finance, you may find them mostly in some big cities of this country.

#1 – Deloitte

Deloitte has been one of the oldest consulting firms worldwide since 1985. This London-based consultant has two offices in Indonesia, Jakarta and Surabaya. 


With over 17 years of experience, STC provides various services for tax, legal, and accounting cases simultaneously. 


Founded by leading Tax lawyers and Tax Consultants, TAXFORD's main office is in Jakarta. 

#4 – Ernst & Young (EY)

EY is one of the leading tax consulting firms in Jakarta.

#5 – Tax Prime 

Established in 2010, you can look for three services from this professional – tax disputes, tax refunds, and transfer pricing. 

#6 – Pro Excella Prima (PEP) Consult

One of Jakarta's well-known tax consultant offices, helping clients with tax affairs, ranging from filling out Annual Tax Returns to dispute appeals.

#7 – Hadiputranto, Hadinoto & Partners

One of the best tax consulting firms In Indonesia, according to World Tax, it provides services like financing, taxation, real estate, etc. 

#8 – HIS Consulting

Not only taxation, this firm also helps clients with investment and business outsourcing. 

#9 – KPMG

This tax consulting firm provides taxation, auditing, and other relevant business consulting services. 

#10 – PB Taxand

You can find this premier tax and finance advisory services in two offices in Jakarta and Surabaya.

People Also Read: Plan To Apply For A Work Visa In Indonesia? Here's The Guide!

The above list concludes some facts about tax in Indonesia and how it works. Looking for an easier way to pay your income tax? Try Flip Globe. Expatriates’ favorite, this app's features allow you to transfer money to any bank in Indonesia and internationally, fast and safely.



6 Tips Memilih Investasi buat Anak Muda
6 Tips Memilih Investasi buat Anak Muda
6 Cara Investasi Reksadana untuk Pemula
6 Cara Investasi Reksadana untuk Pemula
Catat, 8 Universitas di New Zealand Ini Tawarkan Beasiswa!
Catat, 8 Universitas di New Zealand Ini Tawarkan Beasiswa!
Mau Jadi Supplier Baju Import? Cek Dulu Serba-serbinya di Sini
Mau Jadi Supplier Baju Import? Cek Dulu Serba-serbinya di Sini
Cara Melihat Tagihan BPJS Kesehatan, Bisa Pakai Aplikasi Flip!
Cara Melihat Tagihan BPJS Kesehatan, Bisa Pakai Aplikasi Flip!


Mulai transaksi bareng Flip



App Store

App Store
flip logo

Tentang Flip

BlogPromoBerita & MediaCek Kode SwiftKonversi Mata UangKomunitasBantuanKebijakan PrivasiSyarat & KetentuanLaporkan Kerentanan

Hubungi Flip

Layanan Pengaduan Konsumen Flip

+62 21 - 30002424


[email protected]


Jl. Pesona Khayangan Blok CK No. 50, Mekar Jaya, Kec. Sukmajaya, Kota Depok, Jawa Barat 16411

Bisnis & Kerja Sama

[email protected]

Direktorat Jenderal Perlindungan Konsumen dan Tertib Niaga Kementerian Perdagangan RI

Whatsapp 0853 1111 1010

Flip adalah perusahaan transfer dana yang telah terlisensi oleh Bank Indonesia.
© 2024 PT Fliptech Lentera Inspirasi Pertiwi