Deductible employment expenses are:
|IDR (per annum)|
|Occupational expenses (5% of gross income, maximum)||6,000,000|
|Employee contribution to BPJS Ketenagakerjaan for old age security savings (2% of gross income)||Full amount|
|Pension contribution (1% of gross income, maximum IDR 89,397/month) *||1,072,764|
* Valid for March 2020 through February 2021.
Non-business expenses are not claimable as tax deductible expenses.
Certain donations, such as for national disaster, research and development, education facility, sport development, and social infrastructure, are deductible if the requirements are met. Some religious contributions/alms (e.g. zakat for Muslim taxpayers and tithe for Christian taxpayers) are also deductible if paid to certain bodies acknowledged by the government.
The annual personal relief available is shown below.
|As of 1 January 2016 (IDR)|
|Dependants (maximum three), each||4,500,000|
Personal relief is deductible against taxable income. Relief is not available to non-resident taxpayers.
Business expenses are generally claimable as tax deductible expenses, in most respects, in the same manner as for corporate taxpayers (see Deductions in the Corporate summary), except for certain individuals (see Business income in the Income determination section).
Losses incurred by individuals that are attributable to their business and are not subject to a final income tax and not opting for a calculation norm tax may be carried forward for a maximum of five years.