Indonesia

Corporate - Branch income

Last reviewed - 29 December 2020

Branch profits are subject to the ordinary CIT rate of 25%. For fiscal year 2020-2021, a flat CIT rate of 22% applies to net taxable income. For fiscal year 2022 onwards, a flat CIT rate of 20% applies to net taxable income.

The after-tax profits are subject to a withholding tax (WHT) (i.e. branch profits tax or BPT) at 20%, regardless of whether the profits are remitted to the home country. However, a concessional WHT rate may be applicable where a tax treaty is in force (see the Withholding taxes section for more information). The BPT may be exempt if the profits are entirely reinvested in Indonesia (see the Tax credits and incentives section for more information).