Indonesia

Overview

Last reviewed - 29 June 2020

Indonesia, located between the Indian Ocean and the Pacific Ocean along the equator between Asia and Australia, is divided into 34 provinces, with Jakarta as its capital. The official language of Indonesia is Indonesian, and the currency is the rupiah (IDR).

Indonesia, which consists of 17,508 islands and approximately 250 million people, is the world's fourth-most-populous country. It is also the world's third-largest democracy, and the world's largest archipelagic state.

With its vast natural resources and stable political climate, Indonesia has seen positive economic growth even in the face of the recent worldwide economic slowdown. Indonesia had a growth rate of 5.02% through the end of 2019.

Indonesia continues its serious efforts to promote foreign investment as well as domestic investment, capital accumulation, and the export of goods other than energy and mineral resources to expedite economic development and to become internationally competitive. A broad range of deregulatory measures have been implemented, and additional measures and tax facilities can be expected to further enhance the investment climate.

As one of the leading tax practices in Indonesia, PwC Indonesia includes more than 300 professionals consisting of accountants, lawyers, and finance specialists. Our practice strives to understand your business, working together with you and contributing our expertise as tax specialists for the best outcome for your business. We not only listen to your questions and address your immediate concerns, but we also dig further to identify any other issues and needs you may have. We then work together with you to arrive at the best possible solutions.

PwC Indonesia offers services in the following areas:

  • Tax advisory services.
  • Tax compliance services.
  • Tax dispute resolutions.
  • Transfer pricing.
  • Indirect tax and world trade management services.
  • Mergers and acquisitions (M&A).
  • International assignment services (IAS).
  • Inward investment services.
  • Payroll services.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

Up to fiscal year 2019: 25

Fiscal year 2020-2021: 22

Fiscal year 2022 onwards: 20

Corporate income tax (CIT) due dates
CIT return due date

The end of the fourth month after the book year end.

CIT final payment due date

Anytime prior to the submission of the CIT return.

CIT estimated payment due dates

Monthly, by the 15th day of following month.

Personal income tax (PIT) rates
Headline PIT rate (%)

30

Personal income tax (PIT) due dates
PIT return due date

The end of the third month after the calendar year end.

PIT final payment due date

The end of the third month after the calendar year end before filing the tax return.

PIT estimated payment due dates

15th day of the month following the month when the income was received.

Value-added tax (VAT) rates
Standard VAT rate (%)

10

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident: 15 / 15 / 15;

Non-resident: 20 / 20 / 20.

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

Capital gains are subject to the normal CIT rate, except for sale of land and buildings and exchange-traded shares (see Indonesia's corporate tax summary for more information).

Individual capital gains tax rate (%)

Capital gains are subject to the normal PIT rate, except for sale of land and buildings and exchange-traded shares (see Indonesia's individual tax summary for more information).

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Inheritance tax rate (%)

NA

Gift tax rate (%)

NA

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.