Indonesia’s tax claim is based on either or both the residence of the tax subject and source of the income being taxed. The adoption of the same taxation basis by the other country creates exposure to double taxation. When an Indonesian tax resident earns income from a foreign source, Indonesia’s claim to tax that income… Read More
Tax rates and tax base
The VAT rate is typically 10%. This may be increased or decreased to 15% or 5% according to a government regulation. However, VAT on the export of taxable tangible and intangible goods as well as export of services is fixed at 0%. Certain limitations for the zero-rated VAT apply to export of services. VAT is… Read More
Corporate Income Tax Rates
Tax rates Generally, a flat rate of 25% applies. Public companies that satisfy a minimum listing requirement of 40% and other conditions are entitled to a tax cut of 5% off the standard rate, giving them an effective tax rate of 20% (refer to page 69). Small enterprises, i.e. corporate taxpayers with an annual turnover… Read More
