Indonesia

Individual - Sample personal income tax calculation

Last reviewed - 29 June 2020

For book/calendar year 2020

Mr. X is an employee of PT XYZ and earns a monthly salary of IDR 50 million. In March 2020, he received a religious holiday allowance of one month salary. In July 2020, 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 2020, 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 2020:

2 * 1% * 8,512,400 = 170,248

Mar-Dec 2020:

10 * 1% * 8,939,700 = 893,970

(1,064,218)
  (86,564,218)
Taxable income 647,435,782
   
Tax payable (progressive rates, maximum 30%) 139,230,735

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).