Tax on property income in Indonesia
Effective Tax Rate on Rental Income |
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Monthly Income | US$1,500 | US$6,000 | US$12,000 |
Tax Rate | 20.00% | 20.00% | 20.00% |
Click here to see a worked example | |||
Source:
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INDIVIDUAL TAXATION
Nonresidents are liable to pay tax on Indonesian-sourced income. Married couples are generally taxed jointly but may opt for separate taxation if there is a pre-nuptial agreement between husband and wife.
Income Tax

Nonresidents are taxed at a flat rate of 20%. Double-taxation agreements between Indonesia and other countries may reduce this to 10%.
Rental Income
The rental income of non-residents is taxed at a final withholding rate of 20% of gross income, unless DTT (Double taxation treaty) states otherwise.Capital Gains Tax
Capital gains are usually assessable at ordinary tax rates together with other income of the individual. In case of a non-resident, the Capital Gains tax is fixed at 20%PROPERTY TAX
Property Tax (Pajak Bumi dan Bangunan, PBB)
Property tax is levied at progressive rates on the assessed value of the property.
PROPERTY TAX |
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TAX BASE, IDR (US$) | TAX RATE |
Up to 200 million (US$13,761) | 0.01% |
200 million – 2 billion (US$137,611) | 0.10% |
2 billion – 10 billion (US$688,054) | 0.20% |
Over 10 billion (US$688,054) | 0.30% |
Source: Global Property Guide |
CORPORATE TAXATION
INCOME TAX
Income and capital gains earned by companies are taxed at a flat rate of 25%. Income-generating expenses and operating expenses are deductible when computing for the taxable income.