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Individual - Sample personal income tax calculation
Last reviewed - 19 December 2023For book/calendar year 2023
Mr. X is an employee of PT XYZ and earns a monthly salary of IDR 50 million. In March 2023, he received a religious holiday allowance of one month salary. In July 2023, he received a bonus of 1.5 month salary. He is married with two children. His wife does not work, and he does not have any business income. He is enrolled by PT XYZ in the social security program (see Social security contributions in the Other taxes section).
In August 2023, he rented out one of his houses for one year and received an upfront rent payment of IDR 120 million. He maintains a time deposit of IDR 200 million, which generates 5% interest per annum. His gain from redemption of a mutual fund is IDR 10 million.
| IDR | |
| Income: | |
| Annual salary (12 x 50,000,000) | 600,000,000 |
| Religious holiday allowance (one month salary) | 50,000,000 |
| Bonus (1.5 month salary) | 75,000,000 |
| Social security contributions: | |
| Premium of occupational accident protection (paid by employer: 0.24% x 600,000,000) | 1,440,000 |
| Premium of death insurance (paid by employer: 0.3% x 600,000,000) | 1,800,000 |
| Premium of healthcare (paid by employer: 4% x (12 x 12,000,000) | 5,760,000 |
| Annual gross income | 734,000,000 |
| Deductions: | |
| Occupational expenses (5% from gross income or maximum 6,000,000) | (6,000,000) |
| Old age saving contribution (paid by employee: 2% x 600,000,000) | (12,000,000) |
| Personal allowances (54,000,000 + (3 x 4,500,000)) | (67,500,000) |
| Pension contribution: | |
|
Jan-Feb 2023: 2 * 1% * 9,077,600 = 181,552 Mar-Dec 2023: 10 * 1% * 9,559,600 = 955,960 |
(1,137,512) |
| (86,637,512) | |
| Taxable income | 647,362,488 |
| Tax payable (progressive rates) | 138,208,746 |
Notes
- House rentals and interest from time deposits are subject to a final income tax, thus they are no longer included in the above calculation (see Interest income in the Income determination section).
- Gains from redemption of mutual funds are not subject to tax (see Exempt income in the Income determination section).
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