Income tax on rent, worked example, in Indonesia

Taxation Researcher | October 19, 2018

Non-resident couple´s rental income1
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
= Taxable Income 18,000 72,000 144,000
Income Tax3
Flat Rate 20% 3,600 14,400 28,800
Annual Income Tax Due 3,600 14,400 28,800
       
Tax Due as % of Gross Income 20.00% 20.00% 20.00%
Source:
Global Property Guide


Notes


1 The residential property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 13,300.00 IDR

3 Nonresident foreigners deriving rental income in Indonesia are subject to a 20% income tax rate levied on the gross income, without any deduction for depreciation expense and other income-generating expenses.