2.50° S · 118.00° E
Indonesia Tax Guide
AsiaLast verified September 2026Worldwide system
- Top income tax
- 35%
- Capital gains
- Varies (final taxes)
- Corporate
- 22%
- VAT / GST
- 12%
- Residency test
- 183 days
Progressive 5% / 15% / 25% / 30% / 35%; 35% applies above IDR 5 billion
In short
- Bali offers a large digital-nomad community, low costs and a tropical lifestyle, with a 4-year foreign-income exemption for qualifying experts.
- 4-year territorial election: Only Indonesian-source income taxed; foreign income exempt (4 years).
- Watch out: Home broadband is slow, traffic and overdevelopment are worsening, serious medical cases often go to Singapore, and 183 days still triggers tax residency.
Verified September 2026 · 4 sources
Recent changes
No changes logged since the last full verification.
Full change logBest for
- Special regime available
4-year territorial election — Foreign nationals with qualifying expertise can be taxed on Indonesian-source income only for 4 tax …
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimes+
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimesTax Residency
Income Tax Rates
Foreign Income Treatment
Investment Income
Gains generally taxed as ordinary income, but common assets carry final taxes: 0.1% of gross proceeds on listed shares; 2.5% of gross value on land and building transfers.
Wealth & Inheritance
Special Regimes
Practical Notes
Single Identity Number (NIK) now doubles as the tax ID. Annual return due 31 March. Bali digital-nomad presence still triggers residency at 183 days regardless of visa type. Effective compliance is paperwork-heavy; a local tax agent is standard.
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treaties+
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treatiesCorporate Income Tax
Withholding Taxes
VAT / GST
Compliance & Substance
Notable Regimes
- KEK / Free Trade Zone tax holidays
- 4-year territorial election for expatriates
- 0.5% turnover tax for small business
Beyond tax
Living in Indonesia
Bali offers a large digital-nomad community, low costs and a tropical lifestyle, with a 4-year foreign-income exemption for qualifying experts.
- Expat hub
- Bali (Canggu / Denpasar)
- Monthly budget
- ~$1,800
- Climate
- Tropical, 27°C
- Time zone
- UTC+8
- Tax42 → 72
- Cost of living$$
- Safety65
- Healthcare58
- English65
- Internet30 Mbps
- Warm climate100
- Residency access55
- Scores 0-100, higher is better. Editorial composite ratings; see method.
Newcomer tax regime
4-year territorial election: 0%
Only Indonesian-source income taxed; foreign income exempt. 4 years. Who qualifies: Foreign nationals with qualifying expertise who become resident.
Ways to get residency
- Remote Worker visa (E33G)US$60,000/year income from a foreign employer, 1 year
- Second Home visaProof of substantial funds (about IDR 2 billion) or property, 5 or 10 years
Watch out: Home broadband is slow, traffic and overdevelopment are worsening, serious medical cases often go to Singapore, and 183 days still triggers tax residency.
See how Indonesia ranks for remote workers, retirees and familiesData Sources
Last verified: September 2026. Always check official sources before making a decision.
FAQ
What is the personal income tax rate in Indonesia?
+
Indonesia has a top personal income tax rate of 35%. The tax structure is: Progressive 5% / 15% / 25% / 30% / 35%; 35% applies above IDR 5 billion. See the detailed breakdown above and verify with official sources.
Do I need to pay tax on foreign income in Indonesia?
+
Indonesia uses a worldwide system for foreign income. Worldwide by default. Under the 2021 HPP Law, qualifying foreign nationals with specified expertise may elect territorial treatment (Indonesian-source income only) for their first 4 years of residency.
What are the residency requirements for Indonesia?
+
Tax residency in Indonesia generally requires 183 days of physical presence. Resident if present >183 days in any 12-month period, or present with intent to reside. Departure with no intent to return ends residency.. Always verify current rules with official sources.
Is there a wealth tax in Indonesia?
+
No, Indonesia does not have a wealth tax. No wealth tax; annual land and building tax (PBB) applies to property
What is the corporate tax rate in Indonesia?
+
The corporate tax rate in Indonesia is 22%. 22% standard. Listed companies with ≥40% public float get a 3-point reduction to 19%. Small enterprises (turnover ≤ IDR 4.8bn) may use 0.5% final tax on gross turnover for a limited period.
Is there capital gains tax in Indonesia?
+
Tax Atlas records a capital gains tax rate of Varies (final taxes) for Indonesia. Gains generally taxed as ordinary income, but common assets carry final taxes: 0.1% of gross proceeds on listed shares; 2.5% of gross value on land and building transfers. Verify your situation with a qualified adviser.
Does Indonesia have an inheritance tax?
+
No, Indonesia does not levy an inheritance or estate tax according to the data. No inheritance or gift tax; inheritances are excluded from taxable income.
What is the VAT or sales tax rate in Indonesia?
+
The standard VAT / GST rate in Indonesia is 12%. 12% headline rate from 1 January 2025; effective 11% on most goods and services via a transitional tax-base adjustment. 12% in full on luxury goods.
US citizen moving to Indonesia? Read this first.
Indonesia's top personal rate of 35% means the Foreign Tax Credit (FTC) usually wins over FEIE for US citizens.
- •FTC (Form 1116) credits Indonesia tax against US tax dollar-for-dollar. Because Indonesia tax exceeds US tax on the same income, you typically owe zero US tax and accumulate carryforward credits (10-year carry).
- •Self-employment tax is owed in full to the US — no totalization agreement with Indonesia.
- •For earned income near the FEIE cap (~$130k), FEIE is sometimes simpler administratively. Above the cap, FTC strategy almost always wins given Indonesia's rates.
- •Indonesia residency days threshold: 183. Treaty tie-breaker rules (where applicable) help with double-tax avoidance.
The Atlas · membership by intake
Is Indonesia right for you? Get a plan built around you.
Answer 12 quick questions and the Atlas builds your personal dossier: whether Indonesia actually fits you, where your company should sit, the regimes you could qualify for and the traps for your situation.
Want Indonesia rate alerts?
Get the 2026 cheat sheet (all jurisdictions, one page) plus an email when Indonesia changes its tax rates or residency rules.
No spam. One email when rates materially change. Unsubscribe in one click.
Related on TaxAtlas
- Is this the right country for you?4-question quiz scores 53 countries against your situation
- 2026 Global Tax Cheat SheetSide-by-side comparison of all 53 jurisdictions
- 2026 international tax changesRecent updates affecting jurisdictions like this one
- Get help with a Indonesia moveRequest a response within 1–2 business days