Non-Taxable Income (applies to corporate and individual taxpayers)
The law specifies a number of categories of income that are exempted from tax. These are:
·     Aid, donations, zakat, religious donations or gifts received, provided there is no business, work, or ownership relationship between the parties concerned;
·     Inheritances;
·     Dividends received by a resident company from another resident company, provided that the dividends are paid out from retained earnings and the recipient owns 25% or more of the investee company;
·     Payments by an insurance company to an individual in connection  with health, accident, life, or education insurance;
·     Assets, including cash, received by an entity in exchange for shares or capital contribution;
·     Profits distributed to a venture-capital company by a small or medium-size enterprise engaging in certain businesses in Indonesia; and
·    The share of profit received by a member of a limited partnership without share capital, partnership, association, or firm, including the participation unit holders of collective investment agreements.