Indonesia

Individual - Taxes on personal income

Last reviewed - 20 December 2019

A tax resident is taxed on worldwide income. However, this may be mitigated by the application of double taxation agreements (DTAs).

Non-resident individuals are subject to withholding tax (WHT) at 20% in respect of their Indonesian-sourced income. Concessions are, however, available where a DTA is in force.

The rates applied to taxable income are shown below.

Individual tax rates

Taxable income (IDR*) Tax rate (%) Tax (IDR)
Up to IDR 50 million 5 2.5 million
Above IDR 50 million to IDR 250 million 15 30 million
Above IDR 250 million to IDR 500 million 25 62.5 million
Above IDR 500 million 30 30% of the relevant amount

* Indonesian rupiah

Tax on severance payments

Severance payments are taxed separately at the following rates*:

Taxable income (IDR) Tax rate (%) Tax (IDR)
Up to IDR 50 million 0 0
Above IDR 50 million to IDR 100 million 5 2.5 million
Above IDR 100 million to IDR 500 million 15 60 million
Above IDR 500 million 25 25% of the relevant amount

* The rates are final and applied only if the payment is made at once, or in two years at the maximum if the payment is made in sequence. For payments for year three onwards, the ordinary individual tax rates apply.

Tax on lump-sum pension payments

The final tax rates for lump-sum pension payments from a government-approved pension fund and old-age security saving payments from Badan Penyelenggara Jaminan Sosial Ketenagakerjaan (BPJS Ketenagakerjaan) (see Social security contributions in the Other taxes section) are as follows*:

Taxable income (IDR) Tax rate (%) Tax (IDR)
Up to IDR 50 million 0 0
Above IDR 50 million 5 5% of the relevant amount

* The rates are final and applied only if the payment is made at once, or in two years at the maximum if the payment is made in sequence. For payments for year three onwards, the ordinary individual tax rates apply.

Local income taxes

There are no local taxes on individual income in Indonesia.