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Individual - Deductions
Last reviewed - 19 December 2023Employment expenses
Deductible employment expenses are:
| IDR (per annum) | |
| Occupational expenses (5% of gross income, maximum IDR 500,000/month) | 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 95,596/month) * | 9,559,600 |
* Valid for March 2023 through February 2024.
Personal deductions
Non-business expenses are not claimable as tax deductible expenses.
Charitable contributions
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.
Personal allowances
The annual personal relief available is shown below.
| IDR | |
| Taxpayer | 54,000,000 |
| Wife | 4,500,000 |
| Dependants (maximum three), each | 4,500,000 |
Personal relief is deductible against taxable income. Relief is not available to non-resident taxpayers.
Business deductions
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 tax summary), except for certain individuals (see Business income in the Income determination section).
Losses
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.
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