Corporate Tax for PT PMA in Indonesia
Complete guide to corporate income tax for foreign-owned companies in Indonesia. Learn about tax rates, monthly obligations, filing requirements, and available incentives.
Get Tax AssistanceQuick Facts
Corporate Tax Rates 2025
Different tax rates applicable to Indonesian companies
Standard Rate
General corporate income tax rate
All companiesSME Rate
50% discount on first IDR 4.8B turnover
Turnover ≤ IDR 50BListed Company
3% discount for public companies
40%+ shares tradedPioneer Industry
Tax holiday for 5-20 years
Priority sectorsMonthly Tax Obligations
Regular filing and payment obligations for PT PMA
| Tax Type | Description | Rate | Deadline |
|---|---|---|---|
| PPh 21 | Withholding tax on employee salaries | Progressive 5-35% | 10th of following month |
| PPh 23 | Withholding tax on services, royalties, dividends | 2% - 15% | 10th of following month |
| PPh 25 | Monthly installment of annual income tax | 1/12 of previous year | 15th of following month |
| PPh 4(2) | Final tax on construction, rent, etc. | 2.65% - 10% | 10th of following month |
| VAT (PPN) | Value Added Tax on sales | 11% | 20th of following month |
Annual Filing Requirements
Year-end tax compliance obligations
Corporate Tax Return (SPT Badan)
Usually April 30th
Transfer Pricing Documentation
For related-party transactions
Annual Financial Statements
Audited if required
Withholding Tax Reconciliation
PPh 21, 23, 4(2)
Tax Incentives for Investors
Available tax incentives for foreign investment in Indonesia
Tax Holiday
100% reduction for 5-20 years
Pioneer industry, IDR 500B+ investment
Tax Allowance
30% of investment deduction
Priority sectors, employment creation
Super Deduction
200-300% R&D expense deduction
Research & development activities
SEZ Benefits
Various tax reductions
Operations in Special Economic Zones
Late Filing Penalties
Late monthly tax returns incur penalties of IDR 100,000 - 1,000,000 per return. Late annual returns face a penalty of IDR 1,000,000 plus 2% monthly interest on unpaid taxes. Ensure all deadlines are met to avoid penalties.
Frequently Asked Questions
Common questions about corporate tax in Indonesia
What is the corporate tax rate in Indonesia?
The standard corporate income tax rate in Indonesia is 22%. Small and medium enterprises with annual turnover up to IDR 50 billion receive a 50% discount on the first IDR 4.8 billion of taxable income, resulting in an effective rate of 11%.
When is the corporate tax return due?
Corporate tax returns (SPT Tahunan PPh Badan) must be filed within 4 months after the end of the fiscal year. For companies with calendar year fiscal period, this means April 30th.
What monthly tax obligations does a PT PMA have?
PT PMA companies must file monthly returns for PPh 21 (employee withholding), PPh 23 (service withholding), PPh 25 (installment), PPh 4(2) (final taxes), and VAT (if registered). Late filing incurs penalties.
Are there tax incentives for foreign investment?
Yes, Indonesia offers various incentives including Tax Holiday (100% reduction for 5-20 years), Tax Allowance (30% investment deduction), Super Deduction for R&D, and special rates in Special Economic Zones.
Is transfer pricing documentation required?
Yes, companies with related-party transactions must maintain transfer pricing documentation. The threshold for master file and local file is IDR 50 billion in gross revenue or IDR 20 billion in related-party transactions.
Need Help with Corporate Tax?
Our tax experts can handle monthly filings, annual returns, and ensure your PT PMA stays fully compliant with Indonesian tax regulations.
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