Monthly Tax Obligation

  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

Withholding Tax Rates

The withholding tax rates applicable under tax treaties are summarised below:   Notes        Portfolio        Substantial holdings Interest Royalties Tax     1.  Algeria 15% 15%    15/0%      15%    10%     2.  Australia 15% 15%    10/0% 15/10%    15%     3.  Austria 15% 10%    10/0%      10%    12%     4.  Bangladesh… Read More

Article 23

Article 23 income tax (PPh 23) Certain types of income paid or payable to resident taxpayers are subject to Article 23 income tax at a rate of either 15% or 2% of the gross amounts: a.    Article 23 income tax is due at a rate of 15% of the gross amounts on the following: 1.  … Read More

Article 22

Article 22 income tax is typically applicable to the following: Event            Tax rate            Tax base 1.     The import of goods (except goods         2.5%        Import value, i.e., CIF value plus mentioned in number 2 below) using                 duties payable an Importer Identifcation Number (Angka Pengenal… Read More

Article 21

Article 21 income tax (PPh 21) Employers are required to withhold Article 21 income tax from the salaries payable to their employees and pay the tax to the State Treasury on their behalf. The same withholding tax is applicable to other payments to non- employee individuals (e.g., fees payable to individual consultants or service providers). … Read More

Article 4 (2)

Article 4 (2) – final income tax (PPh Final) Resident companies, Permanent Establishments (PEs), representatives of foreign companies, organizations, and appointed individuals are required to withhold final tax from the following gross payments to resident taxpayers and PEs: 1.  Rental of land and/or buildings                                                                                                                            10% 2.  Proceeds from transfers of land and building rights                                                                                       5%… Read More

Introduction of Withholding Tax

Indonesian income tax is collected mainly through a system of withholding taxes. Where a particular income item is subject to withholding tax, the payer is generally held responsible for withholding or collecting the tax. These withholding taxes are commonly referred to using the relevant article of the Income Tax (Pajak Penghasilan/PPh  ) Law, as follows:… Read More