Southeast Asia
Indonesia: tax at a glance
Residents are taxed on worldwide income up to 35%. VAT rose toward 12% in 2025, with an 11% effective rate on most goods.
Worldwide (residence-based)
Last verified
Ways to relocate to Indonesia
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 35%Progressive, with a 35% bracket above IDR 5bn, added by the 2022 HPP Law.
- Corporate income
- 22%
- Capital gains
- Taxed as ordinary income. Listed shares are taxed at 0.1% of proceeds, land and buildings at a final 2.5%.
- VAT / VAT (PPN)
- 12%, with an 11% effective rate on most goods.
- Dividends (WHT)
- 20% for non-residents. Resident-individual dividends are exempt if reinvested.
- Interest (WHT)
- 20% for non-residents.
- Royalties (WHT)
- 20% for non-residents.
- Social security (employee)
- Around 3-4%, covering BPJS old-age, pension and health contributions.
- Social security (employer)
- Around 10-11%, covering BPJS employment and health contributions.
- Wealth tax
- None
- Inheritance / estate
- None
- Property tax
- Land and Building Tax (PBB), up to 0.5% of assessed value.
- Other
- Luxury goods sales tax (PPnBM) of 10-200%.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- Yes
- CRS
- Participating
A special regime for new arrivals
A limited four-year territorial regime exists for certain newly-arrived foreign nationals with specific expertise. It taxes only Indonesian-source income. The conditions are narrow, and it does not apply to passive investors generally.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.