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

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

Non Taxable Goods and Profit

By law, all goods and services, unless otherwise stated, constitute taxable goods or taxable services. The legal negative list sets out which goods and services are categorized as non- taxable, as follows: Non-taxable Goods mining or drilling products extracted directly from their sources, for example crude oil, natural gas, geothermal energy, sand and gravel, coal… Read More

The introduction of Indonesian Value Added Tax

General VAT is typically due on events involving the transfer of taxable goods or the provision of taxable services in the Indonesian Customs Area. The taxable events are:  Deliveries of taxable goods in the Customs Area by an enterprise;  Import of taxable goods;  Deliveries of taxable services in the Customs Area by an enterprise;  Use… Read More