Indonesia reformed its tax system in 2022 with 5 brackets from 5% to 35%. The PTKP (Penghasilan Tidak Kena Pajak) provides Rp 54 million/year (~$3,400) tax-free allowance, plus Rp 4.5 million per dependent. But Indonesia's standout feature is the 0.5% final tax for SMEs with revenue under Rp 4.8 billion/year—extremely attractive for small business owners. BPJS social security runs ~4% employee (JHT 2% + JP 1% + BPJS Kesehatan 1%). A Rp 200 million earner (~$12,700) pays roughly Rp 14 million income tax (~7%). Indonesia taxes worldwide income for residents (183+ days). Non-residents pay 20% withholding on Indonesian-source income. Tax amnesty programs have been popular. Filing deadline is March 31 for individuals. Use our calculator to estimate your Indonesian tax liability.
Note: These are marginal rates — you only pay the higher rate on income within each bracket.
Source: Directorate General of Taxes
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Indonesia has 5 brackets (post-2022 reform): 5% on Rp 0-60 million, 15% on Rp 60-250 million, 25% on Rp 250-500 million, 30% on Rp 500 million-5 billion, and 35% above Rp 5 billion. The PTKP (non-taxable income) of Rp 54 million means effective rates are lower. A Rp 100 million earner with no dependents pays ~Rp 2.3 million (~2.3%).
PTKP (Penghasilan Tidak Kena Pajak) is your tax-free allowance: Rp 54 million/year for individuals, plus Rp 4.5 million for spouse (if not working), and Rp 4.5 million per dependent (up to 3). A married person with 3 children gets Rp 72 million tax-free. PTKP is subtracted from gross income before calculating tax.
Businesses with annual revenue under Rp 4.8 billion can opt for PP 55 final tax at just 0.5% of gross revenue—no expense deductions needed. This applies to sole proprietors and certain entities. Extremely simple and low-cost for small businesses and freelancers. You must elect this regime; default is regular progressive taxation.
BPJS Kesehatan (health) requires 5% contribution (4% employer, 1% employee) capped on Rp 12 million monthly salary. BPJS Ketenagakerjaan (employment) includes: JKK (accident) 0.24-1.74%, JKM (death) 0.3%, JHT (old age) 5.7% (3.7% employer, 2% employee), JP (pension) 3% (2% employer, 1% employee). Total employee burden ~4%.
Residents (183+ days in Indonesia) pay progressive rates on worldwide income. Non-residents pay 20% flat withholding on Indonesian-source income only—no filing required if only withholding income. Indonesia has tax treaties with 70+ countries allowing reduced rates. KITAS/KITAP holders are typically considered residents from day one.
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Last Updated: May 2026