Type of Tax Tax Payment Deadline Tax Return Filing Deadline Article 21/26 Income Tax The 10th of the following month The 20th of the following month Article 23/26 Income Tax The 10th of the following month The 20th of the following month Article 25 Income Tax The 15th of the following month The… Read More
Deemed Salaries
Expatriate employees working for oil and gas drilling companies are deemed compensated at specifed amounts, which vary by position, resulting in the following deemed taxable income: US$ per month (gross before tax) General managers 11,275 Managers 9,350 Supervisors and tool pushers 5,830 Assistant tool pushers 4,510 … Read More
Main Personal Relief
Annual non-taxable income (Penghasilan Tidak Kena Pajak/ PTKP) for resident individuals are as follows: Rp. Taxpayer 15,840,000 Spouse 1,320,000 Each dependant (max. of 3) 1,320,000 Occupational expenses (5% of gross income, max. Rp. 500,000/month) 6,000,000 Employee contribution to Jamsostek for old age security savings (2% of gross income) Full… Read More
Social Security (Jamasostek)
Indonesia does not have a comprehensive social security system; however, there is a worker’s social security program (Jamsostek) which provides compensation in the event of working accidents, deaths, and old age (55 years) as well as sickness or hospitalization. The program is maintained by a designated state-owned company, PT Jamsostek, and calls for premium contributions… Read More
Concessional Tax Rates
The final tax rates for severance payments (if paid within 2 years) are as follows: Taxable Income Rate Tax Rp. On the frst Rp. 50,000,000 Nil Nil On the second Rp. 50,000,000 5% 2,500,000 Rate Tax Rp. On the next Rp. 400,000,000 15% 60,000,000 On the… Read More
Benefits In Kind
BIKs, for example cars, housing, education, home leave and reimbursement of an employee’s Indonesian tax liability provided by the employer, are typically not assessable in the hands of the employee. This also applies to BIKs which are required for the execution of a job, for example protective clothing, uniforms, transportation costs to and from the… Read More
Tax Rate – Individual
Most income earned by individual tax residents is subject to income tax at the following normal tax rates: Taxable Income Rate Tax Rp. On the first Rp. 50,000,000 … Read More
Registration
Registration and fling Resident individual taxpayers who receive or earn annual income exceeding the PTKP threshold must register with the ITO and file annual income tax returns (Form 1770). The tax return should state all the individual’s income, including compensation from employment, investment income, capital gains, overseas income and other income, as well as providing… Read More
Tax Payments – Individual
A substantial part of individual income is collected through withholding by third parties. Employers are required to withhold Article 21/26 income tax on a monthly basis from the salaries and other compensation payable to their employees. If an employee is a resident taxpayer, the amount of tax withheld should be based on the normal tax… Read More
Tax Residence- Individual
An individual is regarded as a tax resident if he/she fulfills any of the following conditions: He/she resides in Indonesia; He/she is present in Indonesia for more than 183 days in any 12-month period; He/she is present in Indonesia during a fiscal year and intends to reside in Indonesia. Note: The provisions of tax treaties… Read More
INDONESIAN TAX 