Income Tax for Foreigners in Indonesia
Understand Indonesian personal income tax (PPh), tax brackets, residency rules, and filing requirements. Essential guide for expats working in Indonesia.
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Indonesia Income Tax Brackets 2025
Progressive tax rates applicable to annual taxable income
| Income Bracket | Tax Rate | Notes |
|---|---|---|
| Up to IDR 60 million | 5% | Lowest bracket for annual income |
| IDR 60M - 250M | 15% | Middle income range |
| IDR 250M - 500M | 25% | Upper middle income |
| IDR 500M - 5B | 30% | High income |
| Above IDR 5 billion | 35% | Highest bracket |
Types of Income Tax (PPh)
Different income tax types and their application
Withholding tax on employment income
Deadline: 10th of following monthWithholding tax on services, dividends, interest
Deadline: 10th of following monthMonthly installment of annual income tax
Deadline: 15th of following monthAnnual income tax return underpayment
Deadline: End of 3rd month after fiscal yearTax Residency Rules
Factors that determine tax residency status in Indonesia
Present in Indonesia for 183+ days in 12 months
Intent to stay in Indonesia
Family, economic, and social ties
Indonesian employer or work assignment
Tax Deductions & Allowances
Reduce your taxable income with these deductions
Personal Allowance (PTKP)
Annual personal exemption
Spouse Allowance
If spouse has no income
Dependents (max 3)
Children or relatives in household
Job-Related Expenses
Standard deduction for employees
Pension Contributions
BPJS Ketenagakerjaan
Non-Resident Tax Rate
If you are present in Indonesia for less than 183 days, you are considered a non-resident and subject to a flat 20% withholding tax on Indonesian-source income. This may be reduced under applicable tax treaties.
Frequently Asked Questions
Common questions about income tax for foreigners in Indonesia
When is a foreigner considered a tax resident in Indonesia?
A foreigner becomes an Indonesian tax resident when present in Indonesia for more than 183 days within any 12-month period, or when they intend to reside in Indonesia. Tax residents are taxed on worldwide income.
What is PPh 21?
PPh 21 (Pajak Penghasilan Pasal 21) is the withholding tax on employment income. Employers must withhold PPh 21 from employee salaries and remit it to the tax office by the 10th of the following month.
Do non-residents pay different tax rates?
Yes, non-residents (present less than 183 days) are subject to a flat 20% withholding tax on Indonesian-source income, unless reduced by a tax treaty.
When must I file my annual tax return?
Individual taxpayers must file their annual tax return (SPT Tahunan) by March 31st of the following year. Late filing incurs a penalty of IDR 100,000.
Are benefits and allowances taxable?
Most benefits in kind are taxable, including housing, vehicle, and other allowances. Some benefits like meals and transportation may have specific treatment under tax regulations.
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