Taxation of individuals

Residents

A resident tax subject is defined as any individual present in Indonesia for more than 183 days in any twelve month period, or any individual present in Indonesia and intending to reside in Indonesia. Resident individuals are taxed at the normal rates on taxable income,being world-wide gross income less allowable deductions and non-taxable income.Individual income taxes in Indonesia are levied only at the national level. Personal tax rates are:

Income (IDR) Percentage (%) Up to
Rp 50,000,000 5%
From Rp 50,000,001 to Rp 250,000,000 15%
From Rp 250,000,001 to Rp 500,000,000 25%
Above Rp 500,000,000 35%

Non-residents

A non-resident individual, being an individual present in Indonesia for less than 183 days with no intention to reside, is deemed to be a non-resident tax subject under the law if he or she receive or accrues any income from Indonesia. Payments to nonresident individuals in the form of dividends, interest, royalties, rents for property, prizes or awards, and payment for technical, management and other services wherever performed are subject to a 20% withholding tax, subject to any reduced rates under an applicable tax treaty.

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