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
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.