1. Basis of Taxation
Income is taxed on a current year basis and taxpayers are required to submit tax returns on a self assessment basis. Residents are taxed on their worldwide income whereas non residents are only taxed on their Indonesian sourced income.
2. Corporate Tax
For fiscal year 2009 the tax rate is 28% and will be reduced to 25% from fiscal year 2010. Public companies which shares of at least 40% of total paid up capital are traded at the Indonesian stock exchange and comply with certain requirements can get 5% reduction. SMEs with gross turnover of maximum Rp 50 billion get 50% reduction from this rate levied on taxable income generated by gross turnover of up to Rp 4.8 billion.
3. Withholding tax rate (non-treaty)
|
Resident |
Non-resident Individual/Corporation |
Dividends |
(1) |
20% |
Interest |
15% |
20% |
Royalties/know-how |
15% |
20% |
Rents (for moveable property) |
2% |
20% |
Management fees |
2% |
20% |
Technical fees |
2% |
20% |
Directors’ fees |
(2) |
20% |
(1) No withholding tax if paid out of retained earnings to companies with ownership of at least 25%. Rate is 10% if paid to individuals.
(2) Progressive rate, see item 4 below.
4. Residential individual tax rates
Taxable Income |
Tax Rate |
1 - 50.000.000 |
5% |
50.000.001 - 250.000.000 |
15% |
250.000.001 - 500.000.000 |
25% |
In excess of 5000.000.000 |
30% |
5. Non-residential individual tax rates
20%
6. Goods and Services tax
Divided into Value Added Tax and Sales Tax on Luxury Goods.
VAT rate 10% of sales price/import value and 0% on export of taxable goods.
Sales Tax on Luxury Goods rate is between 10% and 75% depending on types of goods.
7. Estate duty
Transfer of land and building rights is subject to tax to the party receiving/obtaining the rights.
Rate is (5% x taxable acquisition value*) x 50%
*Taxable acquisition value = tax object acquisition value - allowable non-taxable threshold.
8. Stamp duty
Types of Transactions |
Stamp Duty |
Agreements/documents to document facts, actions of civil nature |
Rp 6,000 |
Deeds prepared by notary public |
Rp 6,000 |
Documents bearing a sum of money which state receipt of money etc. |
* |
Financial instruments such as cheques, bank drafts, securities |
* |
Documents to be used as evidences before a court |
Rp 6,000 |
* Except for cheques, duty is Rp 6,000 if value stated in document is above Rp 1 million and Rp 3,000 if between Rp 250,000 and Rp 1 million. No duty for values below Rp 250,000.
For cheques the duty is Rp 3,000 for all values.
9. Property tax
0.5% x taxable sale value*
*Taxable sale value = (tax object sale value - amount exempt) x assessment value.
Assessment value is 20% for tax object sale value of up to Rp 1 billion and 40% for value above Rp 1 billion.
10. Income tax filing deadlines
Types of Form |
Entity |
Deadlines* |
Formulir 1770 |
Residential individual |
March 31 the following year |
Filing not required |
Non-residential individual |
|
Formulir 1771 |
Companies (incl. Partnerships) |
4 months after fiscal year-end |
Formulir 1721 |
Personnel |
March 31 the following year |
11. Double Tax Agreements.
Certain payments by resident in Indonesia to non-residents are subject to domestic withholding tax rates. The rates of taxes may be reduced under the terms of a double tax agreements with a treaty country as those listed below.
Country |
Dividend
% |
Interest
% |
Royalties
% |
Algeria
Australia
Austria
Bangladesh
Belgium
Brunei Darussalam
Bulgaria
Canada
Czech
China
Denmark
Egypt
Finland
France
Germany
Hungary
India
Italy
Japan
Jordan
Korea, Republic of
Korea, Democrat People’s
Republic of
Kuwait
Luxemburg
Malaysia
Mexico
Mongolia
Netherlands
New Zealand
Norway
Pakistan
Philippines
Poland
Romania
Russia
Seychelles
Singapore
Slovak
South Africa
Spain
Sri Lanka
Sudan
Sweden
Switzerland
Syria
Taiwan
Thailand
Tunisia
Turkey
United Arab Emirates
Ukraine
United Kingdom
United States of America
Uzbekistan
Venezuela
Vietnam |
15%
15%
10%
10%
10%
10%
15%
15%
10%
10%
10%
15%
10%
10%
10%
15%
10%
10%
10%
10%
10%
10%
10%
15%
15%
10%
10%
10%
15%
15%
10%
15%
10%
12.5%
15%
10%
10%
10%
10%
10%
15%
12%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
15% |
15%
10%
10%
10%
10%
10%
10%
10%
12.5%
10%
10%
10%
15%
10%
10%
15%
10%
10%
10%
10%
10%
10%
5%
10%
15%
10%
10%
10%
10%
10%
15%
15%
10%
12.5%
15%
10%
10%
10%
10%
10%
15%
15%
10%
10%
10%
10%
10%/15%
12%
10%
5%
10%
10%
10%
10%
10%
15% |
15%
10%/15%
10%
10%
10%
10%
10%
10%
12.5%
10%
15%
15%
10%/15%
10%
10%/15%
15%
15%
10%/15%
10%
10%
15%
10%
20%
12.5%
15%
10%
10%
10%
15%
10%/15%
15%
15%/25%
15%
12.5%/15%
15%
10%
15%
10%/15%
10%
10%
15%
10%
10%/15%
12.5%
15%/20%
10%
15%
15%
10%
5%
10%
10%/15%
10%
10%
20%
15% |
This publication has been prepared for the purpose of quick information dissemination to our counterparts in other Countries. Its contents should not be used as a basis for advice or formulating decisions under any circumstances. |
