Indonesian Pocket Tax Book 2024

Tax Services

Indonesian

Pocket Tax Book

2024

Corporate Income Tax 1

Tax rates; Tax residence; Tax payments; Business prots; Taxation

on certain offshore income; Controlled foreign companies; Capital

allowances; Disallowed deductions; Debt to Equity Ratio; Losses;

Prot distributions; Deemed prot margins; Special industries and

activities; Transfer Pricing; Income Tax on e-commerce and Electronic

Transaction Tax

Individual Income Tax 17

Normal tax rates; Concessional tax rates; Main Personal Relief; Tax

residence; Registration and ling; Tax payments; Benets-in-kind (BIKs);

Social security system

Withholding Taxes 26

General; Articles 21, 22, 4(2), 23 and 26 income taxes

International Tax Agreements 36

Double Taxation Agreements; Tax Information Exchange Agreements;

Mutual Administrative Assistance in Tax Matters; Multilateral Instrument;

US FATCA

Value Added Tax 48

General; Non-taxable goods and services; Tax rates and tax base; VAT

reporting; VAT facilities on certain goods/services; VAT on e-commerce

Luxury-goods Sales Tax 64

Carbon Tax 66

Customs and Excise 68

Import Duty; Export Duty; Excise

Tax Concessions 73

Income tax concessions; LST concession; Concessions on special projects

and special zones

Regional Tax 88

Regional Tax/Duty rates and “Opsen”; Land and Building Tax; Tax on land

and building transfer; Duty on the acquisition of land and building rights

Stamp Duty 95

Tax Payments and Tax Return Filing 96

Monthly tax obligations, Annual tax obligations, Early tax refunds

Accounting for Tax 102

Tax Audits and Tax Assessments 104

Tax Collection Using Distress Warrant 110

Tax Dispute and Resolution 112

Objections; Appeals; Other avenues for tax dispute resolution;

Judicial Review Requests to the Supreme Court

Contacts 116

Contents

PwC Indonesia Indonesian Pocket Tax Book 2024 1

Corporate Income Tax

Tax rates

Generally a at rate of 22% applies. Public companies that

satisfy a minimum listing requirement of 40% and other

conditions are entitled to a tax cut of 3% off the standard

rate, giving them an effective tax rate of 19% (refer to pages

75-76). Small enterprises, i.e. corporate taxpayers with an

annual turnover of not more than IDR 50 billion, are entitled

to a 50% discount of the standard tax rate which is imposed

proportionally on taxable income of the part of gross turnover

up to IDR 4.8 billion. Certain enterprises with gross turnover of

not more than IDR 4.8 billion are subject to Final Tax at 0.5%

of turnover.

Tax residence

A company is treated as a resident of Indonesia for

tax purposes by virtue of having its incorporation or its

domicile is in Indonesia. A foreign company carrying out

business activities through a Permanent Establishment (PE)

in Indonesia will generally have to assume the same tax

obligations as a resident taxpayer.

2 Indonesian Pocket Tax Book 2024 PwC Indonesia

Corporate Income Tax

Tax payments

Resident taxpayers and Indonesian PEs of foreign

companies have to settle their tax liabilities either by direct

payments, third party withholdings, or a combination of

both. Foreign companies without a PE in Indonesia have to

settle their tax liabilities for their Indonesian-sourced income

through withholding of the tax by the Indonesian party

paying the income.

Monthly tax instalments (Article 25 income tax) constitute the

rst part of tax payments to be made by resident taxpayers

and Indonesian PEs as a prepayment of their current year

Corporate Income Tax (CIT) liability. A monthly tax instalment

is generally calculated using the most recent CIT Return

(CITR). Special instalment calculations apply for new

taxpayers, nance lease companies, banks, state-owned

companies, listed companies and other taxpayers with

periodical reporting requirements.

The tax withheld by third parties on certain income (Article 23

income tax) or tax to be paid in advance on certain

transactions (e.g., Article 22 income tax on imports) also

constitute prepayments for the current year CIT liability of the

income recipient or the party conducting the import (refer to

pages 33-34 for income items subject to Article 23 income

tax and pages 26-31 for transactions subject to Article 22

income tax).

PwC Indonesia Indonesian Pocket Tax Book 2024 3

Corporate Income Tax

If the total amount of tax paid in advance through the year

(Articles 22, 23, and 25 income taxes) and the tax paid

abroad (Article 24 income tax) is less than the total CIT due,

the taxpayer has to settle the shortfall before ling its CITR.

Such a payment is referred to as Article 29 income tax.

Certain types of income earned by resident taxpayers

or Indonesian PEs are subject to nal income tax. In this

respect, the tax withheld by third parties (referred to as

Article 4(2) income tax) constitutes the nal settlement of the

income tax for that particular income (refer to pages 32-33

for income items subject to nal income tax under Article

4(2) income tax).

For foreign companies without a PE in Indonesia, the

tax withheld from their Indonesia-sourced income by the

Indonesian party paying the income (Article 26 income

tax) constitutes a nal settlement of their income tax due

(refer to pages 34-35 for income items subject to Article 26

income tax).

Business prots

Taxable business prots are calculated on the basis of

normal accounting principles as modied by certain

tax adjustments. Generally, a deduction is allowed for

all expenditure incurred to obtain, collect and maintain

taxable business prots. A timing difference may arise if an

expenditure recorded as an expense for accounting cannot

be immediately claimed as a deduction for tax.

4 Indonesian Pocket Tax Book 2024 PwC Indonesia

Corporate Income Tax

Taxation on certain offshore income

Indonesian tax residents are generally taxed on a worldwide

income basis. However, the following offshore income may

be exempted from income tax if it is reinvested or used for

business activities in Indonesia within a certain period:

• Income received by an Indonesian taxpayer from a PE

abroad;

• Dividends paid by companies abroad; and

• Active business income received by an Indonesian

taxpayer from abroad (not from a PE or foreign

subsidiary).

For after-tax income from the PE and dividends paid from

the non-listed subsidiary, the minimum reinvestment amount

is 30% of the prot after tax. Otherwise, the difference

between the 30% threshold and the reinvested portion will

be subject to income tax.

Controlled Foreign Companies

Certain income of a Controlled Foreign Companies (CFCs)

are subject to deemed dividend rules in Indonesia. This

income includes dividends, interest, rentals, royalties,

and gains from sales or transfer of assets, with certain

limitations. A CFC is a foreign entity that is at least

50% owned by an Indonesian taxpayer or at least 50%

collectively owned by Indonesian taxpayers. The scope

of CFC income also covers income from indirectly owned

CFC with a minimum of 50% ownership by another CFC, or

collective ownership by an Indonesian taxpayer’s CFCs, or

PwC Indonesia Indonesian Pocket Tax Book 2024 5

Corporate Income Tax

collective ownership by a number of CFCs (including under

the same or different Indonesian taxpayers).

The ownership threshold that is used to determine the

CFC status is the ownership percentage at the end of the

Indonesian taxpayer’s scal year, which is based on either

the percentage of paid-up capital or the percentage paid-up

capital with voting rights. The only situation in which the

rules do not apply is when the CFC’s shares are listed on a

stock exchange.

Capital allowances

Depreciation

Expenditure incurred in relation to assets with a benecial

life of more than one year are categorised and depreciated

from the month of acquisition by the consistent use of either

the straight-line or the declining-balance method.

Tangible

Assets

Categories

Useful Life

Depreciation rate

Straight line

method

Declining

balance

method

II. Building

Permanent 20 years* 5%*

Non-permanent 10 years 10%

Notes:

* Taxpayers are allowed to use the actual useful life based on taxpayer’s

bookkeeping if the useful life is more than 20 years.

The comprehensive lists of the assets included in each category

are set out in certain Minister of Finance (MoF) regulations.

Special rules apply to assets used for certain industries (i.e. oil

and gas, forestry, plantation and cattle breeding).

Amortisation

Intangible property or costs, including the cost of extending

building use rights, rights for business use, rights for use

and goodwill with a useful life of more than one year, should

be amortised on the following bases, as appropriate:

a. Using the straight line or the declining balance method

at the rates specied in categories 1, 2, 3, and 4 under

Depreciation (above) based on the useful life of the

property that is applicable for:

• general intangible assets;

PwC Indonesia Indonesian Pocket Tax Book 2024 7

Corporate Income Tax

• the costs of incorporation and expansion of the

capital of an enterprise; and

• the capitalised costs incurred before the

commencement of commercial operations,

with a useful life of longer than one year. Classication

into the appropriate category is determined on the

basis of the nearest useful life. If an intangible asset

has a useful life of more than 20 years, the amortisation

can be carried out using a 20-year period or the actual

useful life based on taxpayer’s bookkeeping.

b. Using the production unit method on costs incurred

in the acquisition of the right to oil and natural gas

concessions, mining rights, forest concessions, and

other rights to exploit natural resources and natural

products with a benecial life of longer than one year.

Other than for oil and natural gas concessions, the

amortisation may not exceed 20% per annum.

Assets arising from Tax Amnesty and Voluntary Disclosure

programmes

Newly declared assets under 2016-2017 Tax Amnesty

and 2022 Voluntary Disclosure programmes cannot be

depreciated or amortised for tax purposes. The acquisition

costs of these assets are based on the value declared in the

Asset Declaration Letter.

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Corporate Income Tax

Asset transfers

Sales of a company’s assets (other than land and building)

may result in capital gains or losses, calculated as the

difference between the sales proceeds and the tax

writtendown value of the assets concerned. Capital gains

are assessable whilst a capital loss is tax-deductible only if

the asset concerned is used in the running of the business,

i.e., for obtaining, collecting, and securing assessable

income.

Revaluation of xed assets

Subject to the Director General of Taxes (DGT) approval,

corporate taxpayers and PEs who maintain Rupiah (IDR)

accounting may undertake a revaluation of their noncurrent

tangible assets for tax purposes. This may be carried out

once every ve years. Each revaluation must include all

business-related assets which are owned by the company

and located in Indonesia, except for land (this may be

omitted). Before requesting the DGT’s approval, the

company concerned must determine that it has settled all of

its outstanding tax liabilities.

The revaluation must be conducted on a market or fair

value basis. The market values must be determined by

a Government-approved appraiser. These are subject to

DGT adjustments if the values, in the DGT’s view, do not

represent the fair or market values of the assets.

PwC Indonesia Indonesian Pocket Tax Book 2024 9

Corporate Income Tax

Once approved, the depreciation applied to depreciable

assets must be based on the new tax book values

(approved values) on the basis of a full useful life (in other

words, as if the assets were new).

The excess of the fair market value over the old tax book

value of the revalued assets is subject to nal income tax

at a rate of 10%. Subject to the DGT approval, taxpayers

facing nancial difculties may pay this tax in instalments

over 12 months.

Fixed assets falling under categories 1 and 2 must be

retained at least to the end of their useful life. Land,

buildings, and assets falling under categories 3 and 4 must

be retained for at least 10 years after the revaluation date.

Additional nal income tax at a rate of 10% is imposed on

the original revaluation gains if the revalued assets are sold

or transferred before the end of this minimum retention

period. This does not apply to:

a. Transfer of assets because of force majeure or based

on a Government decision/policy or a court decision;

b. Transferred in the course of a tax-neutral business

merger, consolidation, or business split;

c. Withdrawal of xed assets of a company because of

irreparable damage.

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Corporate Income Tax

Disallowed deductions

These include among others:

a. Non-business related expenses;

b. Non-business gifts and aid, except certain religious

contributions/alms and certain donations;

c. Provisions, except for: provision for doubtful accounts

for banking and certain nancial institutions, provision

for insurance companies, deposit security provision for

the Deposit Insurance Corporation (Lembaga Penjamin

Simpanan/LPS), reclamation provision for mining

companies, forestation provision for forestry

companies, and area closure and maintenance

provision for industrial waste processing businesses;

d. Income tax payments;

e. Tax penalties;

f. Prot distributions;

g. Expenses relating to income which is taxed at a nal

rate, e.g., interest on loans relating to time deposits;

h. Expenses relating to income which is exempted from

tax, e.g., interest on loans used to buy shares where

dividends to be received are not subject to income tax;

i. Salaries or compensation received by partnership or

rmas members where their participation is not divided

into shares.

PwC Indonesia Indonesian Pocket Tax Book 2024 11

Corporate Income Tax

Limitation on interest deduction

The acceptable methods to limit the interest deduction are

those commonly used internationally, such as Percentage of

EBITDA (Earning Before Interest, Taxes, Depreciation, and

Amortisation), Debt-to-Equity Ratio, or other methods.

Losses

Losses may be carried forward for a maximum of ve years.

However, for a limited category of businesses in certain

regions or businesses subject to certain concessions, the

period can be extended for up to 10 years. The carrying

back of losses is not allowed. Tax consolidation and group

relief is not available.

Prot distributions

Tax is liable to be withheld from dividends as follows:

a. Resident recipients

Dividend received from an Indonesian company is non-

tax object if it is received or earned by:

• Resident individual taxpayers who reinvest it in

Indonesia within certain period; and/or

• Resident corporate taxpayers.

Dividends received by resident individual taxpayers who

did not meet the reinvestment requirement, are subject

to nal income tax at a maximum rate of 10%.

12 Indonesian Pocket Tax Book 2024 PwC Indonesia

Corporate Income Tax

b. Non-resident recipients:

20% (lower for treaty countries) nal withholding tax is

due on dividends paid to a non-resident recipient.

Deemed prot margins

The following businesses have deemed prot margins for

tax purposes:

Deemed

Prot in

Gross

Revenue

Effective

Income Tax

Rate

Domestic shipping operations 4% 1.20%

Domestic airline operations 6% 1.80%

Foreign shipping and airline

operations

6% 2.64%

Foreign oil and gas drilling operations 15% 3.3%

Certain Ministry of Trade

representative ofces

1% of export

value

0.22%

Notes:

The effective income tax rate (eitr) is calculated using the old tax rate

of 30% because the MoF has not revised the decrees which regulate the

deemed prot margins.

The eitr is calculated using the current tax rate of 22%, excluding Branch

Prot Tax (BPT) portion. BPT rate varies according to availability of a

reduced rate based on tax treaties.

PwC Indonesia Indonesian Pocket Tax Book 2024 13

Corporate Income Tax

Special industries and activities

Certain contractually based concessions are available in

Indonesia. These include Production Sharing Contracts

(PSCs), Contract of Works (CoWs) and Mining Business

Licences (Izin Usaha Pertambangan/IUP).

Companies engaged in upstream oil and gas typically have

to calculate CIT in accordance with their PSCs. The PSCs

can be “conventional” with CIT effectively based on cost

recovery principles or “gross split” which more closely

follow the general CIT rules.

Certain companies engaged in metal, mineral and coal

mining are governed by CoWs for the CIT calculation.

Different provisions may apply including in respect of CIT

rates, deductible expenses and how taxable income is

calculated. CoW arrangements are however no longer

available under the 2009 Mining Law and recent mining

will generally follow an IUP concession. The Mining Law

stipulates that general prevailing tax laws/regulations apply

to these mining projects. Specic tax regulations however

also exist for mining IUPs.

Transfer Pricing

The Income Tax Law denes related parties as:

a. Taxpayer has capital participation directly or indirectly

at least 25% upon another taxpayers; the relationship

between Taxpayers through ownership at least 25%

14 Indonesian Pocket Tax Book 2024 PwC Indonesia

Corporate Income Tax

upon two or more taxpayers; or relationship between

two or more taxpayers mentioned later;

b. Taxpayer controls the other taxpayer or two or more

taxpayers are under the same control, either directly or

indirectly; or

c. There are family relationship either blood relationship or

by marriage in vertical and/or horizontal lineage of one

degree.

Transactions between related parties must be consistent

with the arm’s length principle. If the arm’s length principle

is not followed, the DGT is authorised to recalculate the

taxable income or deductible costs arising from such

transactions applying the arm’s length principle.

Under the General Tax Provisions and Procedures

(Ketentuan Umum dan Tata Cara Perpajakan/KUP)

Law, the Government requires specic transfer pricing

documentation to prove the arm’s length nature of related-

party transactions.

Taxpayers under certain criteria are required to prepare

transfer pricing documentation, namely: Master le, Local

le, and Country by-Country Report (CbCR). The Master le

and Local le must be available if requested by the DGT,

whilst the summary must be attached to the CITR of the tax

year concerned. The Notication of the CbCR obligation and

PwC Indonesia Indonesian Pocket Tax Book 2024 15

Corporate Income Tax

the CbCR itself (if required) must be submitted to the tax

ofce within 12 months after the end of a tax year.

Detailed transfer pricing disclosures are required in the

CITR. These include:

• The nature and value of transactions with related parties;

• The transfer pricing methods applied to those

transactions and the rationale for selecting the

methods; and

• Whether the company has prepared transfer pricing

documentation.

Indonesian Tax Ofce (ITO) provides specic technical

guidelines to carry out transfer pricing audits.

Transfer pricing disputes may be resolved through the

domestic dispute resolution process or, where the dispute

involves a transaction with a related party in a country

that is one of Indonesia’s tax treaty partners, the parties

may request double tax relief under the Mutual Agreement

Procedures (MAP) article of the relevant tax treaty. MAP may

be applied concurrently with a domestic dispute resolution

process. If the MAP process has not reached agreement

until the announcement of Tax Court or Judicial Review

Decision on a MAP-related content, the DGT may use the

Decision result as a position in the MAP negotiation or

propose a cessation of negotiation.

16 Indonesian Pocket Tax Book 2024 PwC Indonesia

Corporate Income Tax

The tax law authorises the DGT to enter into Advance

Pricing Agreements (APAs) with taxpayers and/or another

country’s tax authority on the future application of the arm’s

length principle to transactions between related parties.

APA’s conclusions may potentially be rolled back to open

years, albeit on a limited basis. In all cases, the APA period

can be up to maximum of ve years.

Sovereign Wealth Fund

Sovereign Wealth Fund (Lembaga Pengelola Investasi/LPI)

is an institution that is authorised to manage the sovereign

wealth fund investments of the central Government.

For Indonesian tax purposes, LPI is considered as a

domestic corporate taxpayer that is subject to general

Income Tax treatment, but with several special tax

treatments in relation to the deductibility of provision

expense and Duty on the acquisition of land and/or building

rights (Bea Perolehan Hak atas Tanah dan Bangunan/

BPHTB), as well as withholding tax exemption on certain

loan interest income.

Third parties cooperating with LPI may also receive special

tax treatment in relation to their dividend income, which will

depend on the fullment of certain requirements and the

type of the dividend recipient.

PwC Indonesia Indonesian Pocket Tax Book 2024 17

Individual Income Tax

Normal tax rates

Most income earned by individual tax residents is subject to

income tax at the following normal tax rates:

Taxable Income Rate

Up to IDR 60,000,000 5%

Above IDR 60,000,000 up to IDR 250,000,000 15%

Above IDR 250,000,000 up to IDR 500,000,000 25%

Above IDR 500,000,000 up to IDR 5,000,000,000 30%

Above IDR 5,000,000,000 35%

Concessional tax rates

The nal tax rates for severance payments (if paid within two

years) are as follows:

Gross Income Rate

Up to IDR 50,000,000 Nil

Above IDR 50,000,000 up to IDR 100,000,000 5%

18 Indonesian Pocket Tax Book 2024 PwC Indonesia

Individual Income Tax

Gross Income Rate

Above IDR 100,000,000 up to IDR 500,000,000 15%

Above IDR 500,000,000 25%

The nal tax rates for lump-sum pension payments from a

Government-approved pension fund, old-age security

saving payments from Badan Penyelenggara Jaminan

Sosial (BPJS) Ketenagakerjaan (workers’ social security

programme) if paid within two years are as follows:

Gross Income Rate

Up to IDR 50,000,000 Nil

Above IDR 50,000,000 5%

Payments for year 3 onwards, the usual normal tax rates

(please refer to page 17) will be applied.

PwC Indonesia Indonesian Pocket Tax Book 2024 19

Individual Income Tax

Main Personal Relief

Annual non-taxable income (Penghasilan Tidak Kena Pajak/

PTKP) for resident individuals is as follows:

IDR

Taxpayer 54,000,000

Spouse 4,500,000

Each dependant (max. of 3) 4,500,000

Occupational expenses (5% of gross income, max.

IDR 500,000/month)

6,000,000

Employee contribution to BPJS Ketenagakerjaan for

old age security savings (2% of gross income)

Full amount

Pension maintenance expenses (5% of gross income,

max. IDR 200,000/month)

2,400,000

Non-taxable turnover threshold of IDR 500 million per Fiscal

Year is also applicable for individual taxpayer on certain

income with annual gross turnover of not more than IDR 4.8

billion that is subject to Final Tax (see no. 10 in table in page

33).

20 Indonesian Pocket Tax Book 2024 PwC Indonesia

Individual Income Tax

Tax residence

An individual is regarded as a tax resident if he/she fulls

any of the following conditions:

• He/she resides in Indonesia;

• He/she is present in Indonesia for more than 183 days

in any 12-month period;

• He/she is present in Indonesia during a scal year and

intends to reside in Indonesia.

Note: The provisions of tax treaties may override these rules.

Indonesian tax residents are generally taxed on a

worldwide income basis. However, foreign citizens may be

taxed only on their Indonesian-sourced income for the rst

four years if they full certain requirements. In addition,

there are certain overseas income that are not subject

to tax in Indonesia (see page 4 on Taxation on certain

offshore income).

An Indonesian citizen who is present in Indonesia for less

than 183 days in any 12-month period may be considered

as a non-resident if they full additional requirements, for

example having a permanent home, centre of vital interest,

habitual abode, the status of tax subject, or other criteria

outside Indonesia.

Non-resident individuals are subject to withholding tax at

a rate of 20% (Article 26 income tax, subject to a relevant

tax treaty provisions) on Indonesia-sourced income (as

specied on pages 34-35).

PwC Indonesia Indonesian Pocket Tax Book 2024 21

Individual Income Tax

Registration and ling

Resident individual taxpayers who receive or earn annual

income exceeding the PTKP threshold must register with

the ITO and le Annual Income Tax Return (AITR) (Form

1770). The tax return should disclose all the individual’s

income, including compensation from employment,

investment income, capital gains, overseas income and

other income, as well as providing a summary of the

individual’s assets and liabilities. An Indonesian shareholder

in a CFC is deemed to receive a dividend with respect to the

CFC income. Please refer to pages 4-5 regarding CFCs.

A family is generally regarded as a single tax reporting unit

with a single tax identity number (Nomor Pokok Wajib Pajak/

NPWP) in the name of the head of the family (typically the

husband). His wife and his dependant children’s income

must be reported on the same tax return in his name;

they may or may not be taxed together with his income

depending on whether their income is subject to Article 21

income tax. To support the implementation of single

identity number, the Indonesian resident number (Nomor

Induk Kependudukan) is used as the NPWP for individual

Indonesian residents.

Tax payments

A substantial part of individual income tax is collected

through withholding by third parties. Employers are required

to withhold Article 21/26 income tax on a monthly basis

from the salaries and other compensation payable to their

22 Indonesian Pocket Tax Book 2024 PwC Indonesia

Individual Income Tax

employees. If an employee is a resident taxpayer, the

amount of tax withheld should be based on the normal tax

rates (as set out above). If he/she is a non-resident taxpayer,

the withholding tax is 20% of the gross amount (and may be

set at a lower rate under a tax treaty).

Various other payments to individuals also call for

withholding tax obligations from the payers. These include,

among others:

• Pension payments made by Government-approved

pension funds;

• Severance payments;

• Old-age security saving payments from BPJS

Ketenagakerjaan;

• Fees for services;

• Prizes/awards.

Interest earned on severance payments transferred to a

manpower severance pay management board is subject

to a nal tax of 20% if the board is a bank, or to a 15%

withholding tax under Article 23 income tax in other cases.

Benets-in-kind (BIKs)

BIKs are generally taxable in the hands of the employee. An

exception applies to BIKs that are required for the execution

of a job, the cost of providing BIKs in certain areas, food

and drink provided to all employees, BIKs nanced from

the Government’s budget, and certain types of BIKs with a

certain threshold.

PwC Indonesia Indonesian Pocket Tax Book 2024 23

Individual Income Tax

Social security system

Employers are responsible for ensuring that their employees

are covered by a social security programme. Employees’

contributions are collected by the employers through

payroll deductions. These must be paid together with the

employer’s contributions.

From 1 January 2014, a comprehensive social security

programme covers all Indonesian citizens is in place. The

social security system is administered by:

1. Social Security Agency for health insurance (BPJS

Kesehatan) - covering health insurance

2. Social Security Agency for worker’s social security

(BJPS Ketenagakerjaan) - covering accidents insurance,

old age savings, death insurance, unemployment

insurance, and pensions

The current premium contributions are as follows:

Areas covered

As a percentage of regular

salaries/wages

Borne by

employers

Borne by

employees

Working accident protection 0.24-1.74% -

Death insurance 0.3% -

24 Indonesian Pocket Tax Book 2024 PwC Indonesia

Individual Income Tax

Areas covered

As a percentage of regular

salaries/wages

Borne by

employers

Borne by

employees

Unemployment insurance

(Jaminan Kehilangan Pekerjaan) –

for workers affected by lay-off

Reallocated from

Death insurance

& Working

accident

protection

Old age savings 3.7% 2%

Health care* 4% 1%

Pension** 2% 1%

*) Maximum calculation base is IDR 12,000,000/month

**) Maximum calculation base is updated annually based on BPJS regulation

The compulsory requirement to join the new social

security scheme applies to all employees, including

expatriates who have been working in Indonesia for more

than six months.

Saving Management of People’s Housing

Saving management of people’s housing (Tabungan

Perumahan Rakyat/Tapera) is a mechanism to collect

and provide a long-term, sustainable low-cost funds for

house nancing in order to meet the needs of decent and

affordable housing for the participants. The implementation

of the Tapera Programme is intended for all segments of

workers on the principle of mutual cooperation.

PwC Indonesia Indonesian Pocket Tax Book 2024 25

Individual Income Tax

Deposits contributions are paid by employees and

employers based on a certain percentage of wages i.e.

0.5% for employer and 2.5% for employee or 3% of income

for freelancers.

The Government provides an opportunity for private sector

employers to register their workers no later than 19 May

2027.

26 Indonesian Pocket Tax Book 2024 PwC Indonesia

Withholding Taxes

General

Indonesian income tax is collected mainly through a system

of withholding taxes. Where a particular item of income

is subject to withholding tax, the payer is generally held

responsible for withholding or collection of the tax. These

withholding taxes are commonly referred to using the

relevant article of the Income Tax (Pajak Penghasilan/PPh)

Law, as follows:

(i) Article 21 income tax (PPh 21)

Employers are required to withhold PPh 21 from

the salaries payable to their employees and pay the

tax to the State Treasury on their behalf. The same

withholding tax is applicable to other payments to non-

employee individuals (e.g., fees payable to individual

consultants or service providers). Resident individual

taxpayers without an NPWP are subject to a surcharge

of 20% in addition to the standard withholding tax.

(ii) Article 22 income tax (PPh 22)

PPh 22 is typically applicable to the payments of the

following events:

PwC Indonesia Indonesian Pocket Tax Book 2024 27

Withholding Taxes

No Event

Tax

rate

(%)

Tax base Notes

The import of:

a. Certain end customer goods

b. End consumer goods other

than (a)

c. Goods other than (a) and (b)

using an Importer Identication

Number (Angka Pengenal

Impor/API):

i) Soybeans, wheat and our

wheat

ii) Other than (i)

d. Goods other than (a) and (b)

without an API

7.5

0.5

2.5

7.5

Import

value (i.e.,

CIF value

plus duties

payable)

2 The auctioned imported goods 7.5

Auction

prices

The purchase of goods by the

Government requiring payment

from the State Treasury and Proxy

of Budget User (Kuasa Pengguna

Anggaran/KPA)

1.5 Selling prices 1

The purchase of goods by State

Owned Enterprises (Badan Usaha

Milik Negara/BUMN) and some

of their

subsidiaries

1.5 Selling prices 1,3

The purchase of oil fuel by

gas stations from Pertamina

and its subsidiaries

0.25 Selling prices 2

28 Indonesian Pocket Tax Book 2024 PwC Indonesia

Withholding Taxes

No Event

Tax

rate

(%)

Tax base Notes

The purchase of oil fuel by

gas stations from parties

other than Pertamina and its

subsidiaries

0.3 Selling prices 2

The purchase of oil fuel

by parties other than gas

stations

0.3 Selling prices 2

8 The purchase of gas fuel 0.3 Selling prices 2

9 The purchase of lubricants 0.3 Selling prices

The purchase of cement by local

distributors

0.25 Selling prices

The purchase of paper products

by local distributors

0.1 Selling prices

The purchase of steel products by

local distributors

0.3 Selling prices

The purchase of automotive

products by local distributors

0.45 Selling prices

The purchase of pharmaceutical

products by local distributors

0.3 Selling prices

The purchase of motor vehicles

from Sole Agents (Agen Tunggal

Pemegang Merek/ATPM), Agents

(Agen Pemegang Merek/APM) and

general importers

0.45 Selling prices 4

PwC Indonesia Indonesian Pocket Tax Book 2024 29

Withholding Taxes

No Event

Tax

rate

(%)

Tax base Notes

The purchase of forestry,

plantation, agriculture,

cattle breeding, and shery

products by manufacturers

or exporters

0.25 Selling prices 1

The export of coal, metal

and non-metal minerals

by exporters other than

those engaged in a Mining

Cooperation Agreement or

a Contract of Work with the

Government

1.5 Export value

The purchase of coal, metal

and non-metal minerals from

companies or individuals

holding an IUP

1.5 Selling prices 1

Sale of gold jewellery, gold bars,

or other jewellery by gold jewellery

entrepreneurs

0.25 Selling prices 5

The purchase of very luxurious

goods

5 Selling prices

The sale of prepaid phone credit

and SIM card starter packs

conducted by second-tier

distribution operators who are

also PPh 22 Collectors

0.5

Selling price

or invoiced

value

30 Indonesian Pocket Tax Book 2024 PwC Indonesia

Withholding Taxes

No Event

Tax

rate

(%)

Tax base Notes

a. Delivery of goods;

b. Delivery of certain services;

c. Rental or other income on the

use of assets,

collected by Other Party on the

procurement of goods or services

to Government Institutions

through the Government

Procurement Information

System (Sistem Informasi

Pengadaan Pemerintah) where

the transactions between Vendors

and Government Institutions will

be facilitated by Other Party and

the payments is processed using

petty cash or credit card of the

relevant Government Institution

0.5

Total

payment

value

Income received or earned by

Crypto Asset Sellers, e-commerce

VAT Collectors, or Crypto Asset

Miners:

a. If e-commerce VAT Collector is a

Crypto Asset Physical Trader

b. If e-commerce VAT Collector

is not a Crypto Asset Physical

Trader

0.1

0.2

Transaction

value (not

including

VAT)

Income received or earned by

Crypto Asset Miners in relation to

Crypto Asset

0.1

Income

received (not

including

VAT)

PwC Indonesia Indonesian Pocket Tax Book 2024 31

Withholding Taxes

Notes:

1. In events (3), (4), (16), and (18), the PPh 22 collectors must withhold PPh

22 from the amount payable to a particular vendor, except payments for

the purchase/use of:

a) oil fuel, gas fuel, lubricants, postal products;

b) water and electricity;

c) oil, gas (including upstream by products) from a Contractor of

a PSC, the Contractor’s head ofce, or the Contractor’s trading

arms; and

d) geothermal or electricity from a Contractor of a Joint Operation

Contract.

There is also an exemption for the purchase of goods with a value of up

to IDR 2 million, IDR 10 million, and IDR 20 million for events (3), (4), and

(16) respectively. In the other events, the importer or the buyer of the

designated goods must pay PPh 22 in addition to the amounts payable

for the goods imported or purchased.

2. The withheld PPh 22 constitutes a pre-payment of corporate/individual

income tax liabilities, except for the purchase of oil and gas fuel by

distributors/agents, which is categorised as nal tax.

3. Exception applies on the purchase of forestry, plantation, agriculture,

cattle breeding, and shery products since it is already subject to PPh

22 in event (16).

4. Exception applies on the purchase of very luxurious motor vehicles

since it is already subject to PPh 22 in event (20).

5. Exemption applies on the sale to end consumers, taxpayers with certain

gross income, taxpayers who have Article 22 Tax Exemption Letter,

Bank Indonesia, and through the physical market of digital gold.

The tax does not apply, either automatically or with an Exemption Certicate

issued by the DGT, on certain type of events.

Taxpayers without an NPWP will be subject to a surcharge

of 100% in addition to the standard tax rate.

32 Indonesian Pocket Tax Book 2024 PwC Indonesia

Withholding Taxes

(iii) Article 4 (2) – nal income tax (PPh Final)

Resident companies, PEs, representatives of foreign

companies, organisations and appointed individuals are

required to withhold nal tax from the following gross

payments to resident taxpayers and PEs:

Description Tax rate

1. Rental of land and/or buildings 10%

2. Proceeds from transfers of land and building rights 2.5%

3. Construction work 1.75/2.65/4%

4. Construction consulting 3.5/6%

5. Integrated construction work 2.65/4%

6. Interest on time or saving deposits and on Bank

Indonesia Certicates (SBIs) other than that

payable to banks operating in Indonesia and to

Government-approved pension funds

20%

7. Interest on bonds other than that payable to banks

operating in Indonesia and Government-approved

pension funds

10%

8. Proceeds from sale of shares on Indonesia

Stock Exchange (IDX). To use this rate, founder

shareholders must pay tax at 0.5% of the market

price of their shares upon listing, otherwise, gains

on subsequent sales are taxed under normal rules

0.1%

9. Income from lottery prizes 25%

PwC Indonesia Indonesian Pocket Tax Book 2024 33

Withholding Taxes

Description Tax rate

10. Certain income received by individuals and

corporate (except PEs) with gross turnover of not

more than IDR 4.8 billion in one scal year

0.5%

11. Certain dividend received by certain non-resident

under the cooperation with State Wealth Fund

7.5%

Notes:

1. This includes land owner’s income from Build Operate Transfer agreements.

2. Proceed from the transfer of real estate assets to a Real Estate

Investment Fund (Kontrak Investasi Kolektif – Dana Investasi Real Estate/

KIK-DIRE) is subject to 0.5% tax rate.

3. Different rates apply on interest received from time deposits sourced

from export proceeds (Devisa Hasil Ekspor).

4. This regime is optional for eligible taxpayers and only applicable for

certain period of time depending on the type of taxpayer.

(iv) Article 23 income tax (PPh 23)

Certain types of income paid or payable to resident

taxpayers are subject to PPh 23 at a rate of either 15%

or 2% of the gross amounts:

a. PPh 23 is due at a rate of 15% of the gross amounts

on the following:

1. Dividends (but see pages 11-12 concerning prot

distributions);

2. Interest, including premiums, discounts and loan

guarantee fees;

3. Royalties;

4. Prizes and awards.

34 Indonesian Pocket Tax Book 2024 PwC Indonesia

Withholding Taxes

b. PPh 23 is due at a rate of 2% of the gross amounts

on the fees for the following:

1. Rentals of assets other than land and buildings;

2. Compensation with respect to technical services,

management services, consultation services and

other services, except those have been withheld

of Income Tax as referred to Article 21.

(v) Article 26 income tax (PPh 26)

Resident taxpayers, organisations and representatives of

foreign companies are required to withhold tax at a rate

of 20% from the following payments to non-residents:

a. On gross amounts:

1. Dividends;

2. Interest, including premiums, discounts and

guarantee fees. The withholding tax rate for bond

interest income, including capital gain upon

disposal, that is received or obtained by non-

residents can get a lowered rate, currently at 10%;

3. Royalties, rents and payments for the use of

assets;

4. Fees for services, work, and activities;

5. Prizes and awards;

6. Pensions and any other periodic payments;

7. Swap premiums and other hedging transactions;

8. Gains from debt write-offs;

9. After-tax prots of a branch or PE.

PwC Indonesia Indonesian Pocket Tax Book 2024 35

Withholding Taxes

b. On Estimated Net Income (ENI), being a specied

percentage of the gross amount:

ENI Effective

tax rate

Insurance premiums paid to insurance

companies:

• by the insured

• by Indonesian insurance companies

• by Indonesian reinsurance companies

50%

10%

Sale of non-listed Indonesian company shares 25% 5%

Sale of a conduit company located in tax

haven country where this company serves as

an intermediary for the holding of Indonesian

company shares or a PE

25% 5%

Sale of luxurious jewelleries, diamonds, gold,

luxurious watches, antiques, paintings, cars,

motorcycles, yachts and light aircrafts with sale

value of above IDR 10 million

25% 5%

Where the recipient is resident in a country which has a

tax treaty with Indonesia, the withholding tax rates may be

reduced or exempted. See pages 38-42 for withholding tax

rates under tax treaties.

36 Indonesian Pocket Tax Book 2024 PwC Indonesia

International Tax Agreements

Double Taxation Agreements

Indonesia’s Double Taxation Agreements (DTAs/tax treaties)

provide for tax benets in the form of withholding tax

exemptions for service fees and for reduced withholding

tax rates on dividends, interest, royalties and branch

prots received by tax residents of its treaty partners. Tax

exemption on service fees is typically granted only if the

foreign party earning the income does not have a PE in

Indonesia.

To claim the reduced rates, the foreign party must, at a

minimum, present its Certicate of Domicile (CoD) to the ITO

through the Indonesian party paying the income. Without

this document, either in the form prescribed by the DGT or

in the form of the treaty partner country (subject to certain

conditions), the party is not entitled to the tax benet and

tax is withheld at a rate of 20%.

The foreign party must rst full the following anti-treaty

abuse tests that are applicable to all types of income

generated from Indonesia:

1. The entity has relevant economic substance either

in the entity’s establishment or the execution of its

transaction;

International Tax Agreements

PwC Indonesia Indonesian Pocket Tax Book 2024 37

International Tax Agreements

2. The entity has the same legal form and economic

substance either in the entity’s establishment or the

execution of its transaction;

3. The entity has its own management to conduct its

business, and such management has an independent

discretion;

4. The entity has sufcient assets to conduct business,

other than the assets generating income from

Indonesia;

5. The entity has sufcient and qualied personnel to

conduct the business;

6. The entity has business activity other than receiving

dividends, interest, royalties sourced from Indonesia;

and

7. The purpose of the transaction is not to directly or

indirectly obtain the benet under the convention that is

contrary to the object and purpose of the convention.

In addition, the foreign party must full the following

benecial ownership test, if required under the relevant

tax treaty when generating income in the form of

dividends, interest, or royalties:

1. The entity is not acting as an agent, nominee, or

conduit;

2. The entity has controlling rights or disposal rights on

the income, the assets, or the rights that generate the

income;

3. No more than 50% of the entity’s income is used to

satisfy claims by other persons;

38 Indonesian Pocket Tax Book 2024 PwC Indonesia

International Tax Agreements

4. The entity bears the risk on its own assets, capital, or

the liabilities; and

5. The entity has no contracts which obliges the entity

to transfer the income received to residents of a third

country.

The withholding tax rates applicable under tax treaties are

summarised below:

Notes

Dividends

Interest Royalties

Branch

Prot

Tax

Portfolio Substantial

holdings

1. Algeria 15% 15% 15/0% 15% 10%

2. Armenia 15% 10% 10/0% 10% 10%

3. Australia 15% 15% 10/0% 15/10% 15%

4. Austria 15% 10% 10/0% 10% 12%

5. Bangladesh 15% 10% 10/0% 10% 10%

6. Belarus 10% 10% 10/0% 10% 10%

7. Belgium 15% 10% 10/0% 10% 10%

8. Brunei 15% 15% 15/0% 15% 10%

9. Bulgaria 15% 15% 10/0% 10% 15%

10. Cambodia 1,5 10% 10% 10/0% 10% 10%

11. Canada 15% 10% 10/0% 10% 15%

12. China 2 10% 10% 10/0% 10% 10%

13. Croatia 10% 10% 10/0% 10% 10%

PwC Indonesia Indonesian Pocket Tax Book 2024 39

International Tax Agreements

Notes

Dividends

Interest Royalties

Branch

Prot

Tax

Portfolio Substantial

holdings

14. Czech Republic 15% 10% 12.5/0% 12.5% 12.5%

15. Denmark 20% 10% 10/0% 15% 15%

16. Egypt 15% 15% 15/0% 15% 15%

17. Finland 15% 10% 10/0% 15/10% 15%

18. France 15% 10%

15/10/0%

10% 10%

19. Germany 1 15% 10% 10/0% 15/10% 10%

20. Hong Kong 10% 5% 10/0% 5% 5%

21. Hungary 3 15% 15% 15/0% 15% 20%

22. India 1 10% 10% 10/0% 10% 15%

23. Iran 7% 7% 10/0% 12% 7%

24. Italy 15% 10% 10/0% 15/10% 12%

25. Japan 15% 10% 10/0% 10% 10%

26. Jordan 3 10% 10% 10/0% 10% 20%

27. Korea (North) 10% 10% 10/0% 10% 10%

28. Korea (South) 2 15% 10% 10/0% 15% 10%

29. Kuwait 10% 10% 5/0% 20% 10/0%

30. Laos 15% 10% 10/0% 10% 10%

31. Luxembourg 1 15% 10% 10/0% 12.5% 10%

32. Malaysia 4,5 10% 10% 10/0% 10% 12.5%

33. Mexico 10% 10% 10/0% 10% 10%

40 Indonesian Pocket Tax Book 2024 PwC Indonesia

International Tax Agreements

Notes

Dividends

Interest Royalties

Branch

Prot

Tax

Portfolio Substantial

holdings

34. Mongolia 10% 10% 10/0% 10% 10%

35. Morocco 10% 10% 10/0% 10% 10%

36. Netherlands 10/15% 5% 10/5/0% 10% 10%

37. New Zealand 3 15% 15% 10/0% 15% 20%

38. Norway 15% 15% 10/0% 15/10% 15%

39. Pakistan 1 15% 10% 15/0% 15% 10%

40. Papua New

Guinea

1 15% 15% 10/0% 10% 15%

41. Philippines 20% 15%

15/10/0%

15% 20%

42. Poland 15% 10% 10/0% 15% 10%

43. Portugal 10% 10% 10/0% 10% 10%

44. Qatar 10% 10% 10/0% 5% 10%

45. Romania 15% 12.5% 12.5/0%

15/12.5%

12.5%

46. Russia 15% 15% 15/0% 15% 12.5%

47. Serbia 15% 15% 10/0% 15% 15%

48. Seychelles 3 10% 10% 10/0% 10% 20%

49. Singapore 15% 10% 10/0% 8/10% 10%

50. Slovakia 10% 10% 10/0% 15/10% 10%

51. South Africa 15% 10% 10/0% 10% 10%

52. Spain 15% 10% 10/0% 10% 10%

PwC Indonesia Indonesian Pocket Tax Book 2024 41

International Tax Agreements

Notes

Dividends

Interest Royalties

Branch

Prot

Tax

Portfolio Substantial

holdings

53. Sri Lanka 15% 15% 15/0% 15% 20%

54. Sudan 10% 10% 15/0% 10% 10%

55. Suriname 15% 15% 15/0% 15% 15%

56. Sweden 15% 10% 10/0% 15/10% 15%

57. Switzerland 1 15% 10% 10/0% 10% 10%

58. Syria 10% 10% 10/0% 20/15% 10%

59. Taiwan 10% 10% 10/0% 10% 5%

60. Tajikistan 10% 10% 10/0% 10% 10%

61. Thailand 20/15% 20/15% 15/0% 15% 20%

62. Tunisia 12% 12% 12/0% 15% 12%

63. Turkey 15% 10% 10/0% 10% 10%

64. Ukraine 15% 10% 10/0% 10% 10%

65. United Arab

Emirates

1 10% 10% 7/0% 5% 5%

66. United Kingdom 15% 10% 10/0% 15/10% 10%

67. United States of

America

15% 10% 10/0% 10% 10%

68. Uzbekistan 10% 10% 10/0% 10% 10%

69. Venezuela 1 15% 10% 10/0% 20% 10%

70. Vietnam 15% 15% 15/0% 15% 10%

71. Zimbabwe 1,5 20% 10% 10/0% 15% 10%

42 Indonesian Pocket Tax Book 2024 PwC Indonesia

International Tax Agreements

Notes:

1. Service fees including for technical, management and consulting services

rendered in Indonesia are subject to withholding tax at rates of 5% for

Switzerland and United Arab Emirates, 7.5% for Germany, 10% for Cambodia,

India, Luxembourg, Papua New Guinea, Venezuela, and Zimbabwe, and 15%

for Pakistan.

2. VAT is reciprocally exempted from the income earned on the operation of ships

or aircraft in international lanes.

3. The treaty is silent concerning the branch prot tax rate. The ITO interprets this

to mean that the tax rate under Indonesian Tax Law (20%) should apply.

4. Labuan offshore companies (under the Labuan Offshore Business Activity

Tax Act 1990) are not entitled to the tax treaty benets. Amended protocol

was signed in 20 October 2011 and ratied in 4 August 2017, but pending the

exchange of ratication documents.

5. Ratied but not yet effective, pending the exchange of ratication documents.

Permanent establishment time test

Certain activities may give rise to the creation of a PE if they

are conducted in Indonesia for more than a certain period

of time. The following is a summary of these periods for the

activities specied in the relevant tax treaties:

Bldg. Site

Construction

Installation Assembly Supervisory

Activities

Other

Services

1. Algeria 3 months 3 months 3 months 3 months 3 months

2. Armenia 6 months 6 months 6 months 6 months 120 days

3. Australia 120 days 120 days 120 days 120 days 120 days

4. Austria 6 months 6 months 6 months 6 months 3 months

5. Bangladesh 183 days 183 days 183 days 183 days 91 days

6. Belarus 6 months 6 months 6 months 6 months 120 days

7. Belgium 6 months 6 months 6 months 6 months 3 months

PwC Indonesia Indonesian Pocket Tax Book 2024 43

International Tax Agreements

Bldg. Site

Construction

Installation Assembly Supervisory

Activities

Other

Services

8. Brunei 183 days 3 months 3 months 183 days 3 months

9. Bulgaria 6 months 6 months 6 months 6 months 120 days

10. Cambodia 183 days 183 days 183 days 183 days 183 days

11. Canada 120 days 120 days 120 days 120 days 120 days

12. China 6 months 6 months 6 months 6 months 6 months

13. Croatia 6 months 6 months 6 months 6 months 3 months

14. Czech Republic 6 months 6 months 6 months 6 months 3 months

15. Denmark 6 months 6 months 6 months 6 months 3 months

16. Egypt 6 months 4 months 4 months 6 months 3 months

17. Finland 6 months 6 months 6 months 6 months 3 months

18. France 6 months --- 6 months 183 days 183 days

19. Germany 6 months 6 months --- --- ---

20. Hong Kong 183 days 183 days 183 days 183 days 183 days

21. Hungary 3 months 3 months 3 months 3 months 4 months

22. India 183 days 183 days 183 days 183 days 91 days

23. Iran 6 months 6 months 6 months 6 months 183 days

24. Italy 6 months 6 months 6 months 6 months 3 months

25. Japan 6 months 6 months --- 6 months ---

26. Jordan 6 months 6 months 6 months 6 months 1 month

27. Korea (North) 12 months 12 months 12 months 12 months 6 months

44 Indonesian Pocket Tax Book 2024 PwC Indonesia

International Tax Agreements

Bldg. Site

Construction

Installation Assembly Supervisory

Activities

Other

Services

28. Korea (South) 6 months 6 months 6 months 6 months 3 months

29. Kuwait 3 months 3 months 3 months 3 months 3 months

30. Laos 6 months 6 months 6 months 6 months 6 months

31. Luxembourg 5 months 5 months 5 months 5 months ---

32. Malaysia 6 months 6 months 6 months 6 months 3 months

33. Mexico 6 months 6 months 6 months 6 months 91 days

34. Mongolia 6 months 6 months 6 months 6 months 3 months

35. Morocco 6 months --- 6 months 6 months 60 days

36. Netherlands 6 months 6 months 6 months 6 months 3 months

37. New Zealand 6 months 6 months 6 months 6 months 3 months

38. Norway 6 months 6 months 6 months 6 months 3 months

39. Pakistan 3 months 3 months 3 months 3 months ---

40. Papua New

Guinea

120 days 120 days 120 days 120 days 120 days

41. Philippines 6 months 3 months 3 months 6 months 183 days

42. Poland 183 days 183 days 183 days 183 days 120 days

43. Portugal 6 months 6 months 6 months 6 months 183 days

44. Qatar 6 months 6 months 6 months 6 months 6 months

45. Romania 6 months 6 months 6 months 6 months 4 months

46. Russia 3 months 3 months 3 months 3 months ---

47. Serbia 6 months 6 months 6 months 6 months 6 months

PwC Indonesia Indonesian Pocket Tax Book 2024 45

International Tax Agreements

Bldg. Site

Construction

Installation Assembly Supervisory

Activities

Other

Services

48. Seychelles 6 months 6 months 6 months 6 months 3 months

49. Singapore 183 days 183 days 183 days 6 months 90 days

50. Slovakia 6 months 6 months 6 months 6 months 91 days

51. South Africa 6 months 6 months 6 months 6 months 120 days

52. Spain 183 days 183 days 183 days 183 days 3 months

53. Sri Lanka 90 days 90 days 90 days 90 days 90 days

54. Sudan 6 months 6 months 6 months 6 months 3 months

55. Suriname 6 months 6 months 6 months 6 months 91 days

56. Sweden 6 months 6 months 6 months 6 months 3 months

57. Switzerland 183 days 183 days 183 days 183 days ---

58. Syria 6 months 6 months 6 months 6 months 183 days

59. Taiwan 6 months 6 months 6 months 6 months 120 days

60. Tajikistan 6 months 6 months 6 months 6 months 91 days

61. Thailand 6 months 6 months 6 months 6 months 6 months

62. Tunisia 3 months 3 months 3 months 3 months 3 months

63. Turkey 6 months 6 months 6 months 6 months 183 days

64. Ukraine 6 months 6 months 6 months 6 months 4 months

65. United Arab

Emirates

6 months 6 months 6 months 6 months 6 months

66. United Kingdom 183 days 183 days 183 days 183 days 91 days

46 Indonesian Pocket Tax Book 2024 PwC Indonesia

International Tax Agreements

Bldg. Site

Construction

Installation Assembly Supervisory

Activities

Other

Services

67. United States of

America

120 days 120 days 120 days 120 days 120 days

68. Uzbekistan 6 months 6 months 6 months 6 months 3 months

69. Venezuela 6 months 6 months 6 months 6 months ---

70. Vietnam 6 months 6 months 6 months 6 months 3 months

71. Zimbabwe 6 months 6 months 6 months 6 months 183 days

Tax Information Exchange Agreements

Indonesia has Tax Information Exchange Agreements

(TIEAs) with the Bahamas (pending the exchange of

ratication documents), Bermuda, Guernsey, Isle of Man,

Jersey, and San Marino.

Mutual Administrative Assistance in Tax Matters

Indonesia signed the Convention on Mutual Administrative

Assistance in Tax Matters on 3 November 2011 and ratied

it on 17 October 2014. Indonesia has also signed Multilateral

Competent Authority Agreements on the automatic

exchange of:

1. Financial Account Information using the Common

Reporting Standard; and

2. Transfer Pricing documentation in the form of Country-

by-Country Report.

PwC Indonesia Indonesian Pocket Tax Book 2024 47

International Tax Agreements

Multilateral Convention to Implement Tax Treaty

Related Measures to Prevent Base Erosion and

Prot Shifting

Indonesia signed and ratied the Multilateral Instrument

(MLI) on 7 June 2017 and 13 November 2019 respectively.

Indonesia has submitted notication to OECD (as the

depositary of the MLI) to conrm the completion of internal

procedures on 28 April 2020. This MLI has entered into force

on 1 August 2020. By 27 November 2023, Indonesia has put

60 tax treaties to be covered by the Convention, whereby

the applicability of the MLI is subject to whether or not those

jurisdictions also included Indonesia in their notications.

US FATCA

Indonesia has principally agreed to sign the Inter-

Governmental Agreement (IGA) 1 for FATCA compliance

purposes.

48 Indonesian Pocket Tax Book 2024 PwC Indonesia

Value Added Tax

General

VAT is typically due on events involving the transfer of

taxable goods or the provision of taxable services in the

Indonesian Customs Area. The taxable events are:

a. Deliveries of taxable goods in the Customs Area by an

enterprise;

b. Import of taxable goods;

c. Deliveries of taxable services in the Customs Area by

an enterprise;

d. Use or consumption of taxable intangible goods

originating from outside the Customs Area in the

Customs Area;

e. Use or consumption of taxable services originating from

outside the Customs Area in the Customs Area;

f. Export of taxable goods (tangible and intangible) by a

VATable Entrepreneur (Pengusaha Kena Pajak/PKP);

g. Export of taxable services by a PKP.

The VAT obligations arise upon the above deliveries with the

value exceeding IDR 4.8 billion per annum.

The delivery of taxable goods is dened very broadly; it

includes the following:

Value Added Tax

PwC Indonesia Indonesian Pocket Tax Book 2024 49

Value Added Tax

a. Deliveries of a title to taxable goods according to an

agreement;

b. Transfers of taxable goods according to a hire-purchase

or a nance-lease agreement;

c. Deliveries of taxable goods to an intermediary trader or

through an auction ofcial;

d. Own-use and/or free gift of taxable goods;

e. Remaining taxable goods in the form of inventories and/

or assets, which were originally not for sale, upon a

company’s dissolution;

f. Deliveries of taxable goods within a company (e.g.,

between branches, or between the head ofce and its

branches) unless the company, subject to the DGT’s

approval, centralises its VAT reporting;

g. Deliveries of taxable goods by a PKP in the framework

of sharia-based nancing, whereby the deliveries are

deemed to take place directly from the PKP to the party

in need of the taxable goods.

Non-taxable goods and services

By law, all goods and services, unless otherwise stated,

constitute taxable goods or taxable services. The legal

negative list sets out which goods and services are

categorised as non-taxable with certain exceptions. The

below list refers to the rules as of 1 April 2022.

50 Indonesian Pocket Tax Book 2024 PwC Indonesia

Value Added Tax

Non-taxable Goods

a. food and drink served in hotels, restaurants and the

like, either consumed in the vicinity or taken away,

including food and drink delivered by caterers which is

Regional Tax object; and

b. money, gold bars for the purpose of Government’s forex

reserve, and securities.

Non-taxable Services

a. religious services;

b. public services provided by the Government to carry

out general governmental matters that cannot be

provided by other types of business; and

c. hotel, parking, catering, art and entertainment services

that are subject to Regional Tax.

Tax rates and tax base

The VAT rate is currently 11% and will be increased to 12%

by 1 January 2025 at the latest. This may be increased or

decreased to 15% or 5% according to a GR. However, VAT

on the export of taxable tangible and intangible goods as

well as export of services is xed at 0%. Certain limitations

for the zero-rated VAT apply to export of services.

The use of Other Value as Tax Base

VAT is calculated by applying the VAT rate to a relevant tax

base. In most cases, the tax base is the transaction value

PwC Indonesia Indonesian Pocket Tax Book 2024 51

Value Added Tax

agreed between the parties concerned. For certain events

or situations, other criteria must be used as the tax base,

including:

a. Market value for transactions between related parties,

remaining inventories of taxable goods upon a

company’s dissolution, and sales of (non-inventory)

assets originally not for sale;

b. Cost of sales (selling price minus gross margin) for

own-use or free gifts and internal deliveries of taxable

goods (e.g., between branches, or from the head ofce

to branches);

c. Auction price for deliveries of taxable goods through an

auction ofcer;

d. Agreed price for deliveries of taxable goods through an

intermediary trader;

e. Average result per lm for movies;

f. IDR 12 million per copy of imported movies;

g. 9.9% of the retail selling price for deliveries of tobacco

products;

h. 100/111 of the Government subsidy value and 100/111

of the highest retail price determined by the Minister

of Agriculture for deliveries of certain fertiliser for

agricultural sector;

i. 100/111 from the retail selling price charged by

Government-appointed entity for the delivery of certain

non-subsidised Liqueed Petroleum Gas.

52 Indonesian Pocket Tax Book 2024 PwC Indonesia

Value Added Tax

“Final” VAT regime

Under “Final” VAT regime, the prevailing VAT rate of 11%

is multiplied by a designated percentage resulting in an

effective “Final” VAT rate. The tax base is generally the retail

selling price unless specically mentioned. The Input VAT

in relation to the acquisition of goods or services related to

deliveries under the “Final” VAT regime cannot be credited.

Taxable deliveries under this regime include:

a. 2.2% of total costs incurred or paid, exclusive of the

acquisition price of land, for the self-construction of a

building;

b. 1.1% of selling price on certain deliveries of agricultural

products by certain sellers;

c. 1.1% of selling price on delivery of used motor vehicles;

d. 1.1% of gross commission/fee (including commission

for insurance agent under their management) on

delivery of insurance agent services;

e. 2.2% of gross commission/fee on delivery of insurance/

reinsurance brokerage services;

f. 1.1% of amount billed on package delivery service;

g. 1.1% of amount billed on freight forwarding service

(including freight charges);

h. 1.1% of selling price for tour packages, transportation

facilities, and accommodation on travel agency or

provision of travel package;

i. Religious travel services which include travel service to

non-religious places:

PwC Indonesia Indonesian Pocket Tax Book 2024 53

Value Added Tax

- 1.1% of the travel package selling price where the

religious travel portion can be separated;

- 0.55% of the whole travel package selling price

where the religious travel portion cannot be

separated;

j. 1.1% of voucher selling price on marketing services

using vouchers, transaction payment services in

relation to voucher distribution, and services related

to customer loyalty/reward programme, which are not

based on commission and with no margin;

k. 0.11% of Crypto Asset transaction value if e-commerce

VAT Collectors (Pelaku Perdagangan Melalui Sistem

Elektronik/PPMSE) is a Crypto Asset trader;

l. 0.22% of Crypto Asset transaction value if PPMSE is

not a Crypto Asset trader;

m. 1.1% of Crypto Assets value received by Crypto Asset

Miners;

n. 1.1% of selling price of foreclosed asset for delivery by

the creditor;

o. Final VAT on the sale of gold jewellery and other jewellery

and the related services are ranging from 0% up to

1.65% depending on the transaction types and parties.

54 Indonesian Pocket Tax Book 2024 PwC Indonesia

Value Added Tax

VAT reporting

Companies and individuals designated as PKP are required

to report their business activities and settle the VAT liabilities

on these every month. VAT is usually to be accounted for

on a decentralisation basis. As a result, a company carrying

out business activities through a number of business units

(branches) in the jurisdiction of different district tax service

ofces (Kantor Pelayanan Pajak/KPP) must register each

unit with the relevant KPP. It is in this context that internal

deliveries of taxable goods within a company are subject to

VAT.

Generally, a company may centralise its VAT reporting and

exclude internal deliveries of taxable goods from the scope

of VAT by submitting a written notication to the DGT.

However, there are certain categories of taxpayers that are

required to perform the centralisation and another category

of taxpayers that is prohibited from doing so.

Input-output mechanism

VAT liabilities are typically settled by using an input-output

mechanism. A vendor of taxable goods or taxable services

must typically charge VAT to the buyer. From the vendor’s

perspective, it is an output VAT. The buyer has to pay the

VAT to the vendor. From the buyer’s perspective, it is an

input VAT. To the extent that the goods or services are

necessary for running the buyer’s business, the input VAT

can be credited against the buyer’s own output VAT. If the

PwC Indonesia Indonesian Pocket Tax Book 2024 55

Value Added Tax

accumulated output VAT for a particular month exceeds the

accumulated input VAT for the same period, the taxpayer

in question has to settle the difference by the end of the

following month and prior to the VAT return ling deadline. If,

however, the accumulated input VAT for a particular month

exceeds the accumulated output VAT, the taxpayer may

carry over the overpaid VAT to the following months or ask

for a yearly refund at the end of book year.

Import and self-assessed VAT

Import VAT on goods and self-assessed VAT (also commonly

known as reverse charge) on the consumption or use of foreign

taxable services or intangible goods should be understood in

the context of the standard input-output mechanism.

Non-resident vendors or service providers can be appointed

to collect VAT on the Indonesian buyer/importer (see section

VAT on e-Commerce). If they are not appointed and thus

cannot collect the VAT, the Indonesian buyer/importer has to

pay the VAT for and on behalf of the non-resident vendor or

service provider.

VAT Collector

A variation from the standard mechanism, however, is in

force for deliveries of taxable goods and services to VAT

Collectors. The VAT Collectors are currently the State

Treasury, BUMN and some of their subsidiaries, PSC

companies in the oil and gas sector, and mineral mining

companies holding certain Special IUP. As the name implies,

a VAT Collector is required to collect the VAT due from a

56 Indonesian Pocket Tax Book 2024 PwC Indonesia

Value Added Tax

PKP (vendor) on the delivery of taxable goods or services

and to remit the VAT payment directly to the Government,

rather than to the vendor or the service provider. A company

engaged in deliveries of taxable goods or services mainly

to a VAT Collector may accordingly be in an overpaid VAT

position (see page 58 concerning VAT refunds).

Crediting input VAT

VAT must be accounted for to the DGT every month. Input

VAT for a particular tax period (month), in principle, must be

claimed as a tax credit against the output VAT for the same

tax period. However, the claim can still be made within three

months of the end of the particular tax period if the input

VAT has not yet been expensed.

If a taxpayer has not moved beyond pre-production (i.e.

not delivered or exported VATable goods/services) within a

certain period of time, the taxpayer is considered to have

failed to produce and any Input VAT that has already been

credited can no longer be claimed. The general cut-off for

the pre-production stage is three years, with an extension

for manufacturing sectors and business sectors under

National Strategic Projects, which are ve and six years,

respectively.

Input VAT may also be credited under certain circumstances

such as Input VAT prior to becoming a PKP, Input VAT not

reported in a VAT Return and discovered during a tax audit,

or Input VAT collected through a tax assessment.

PwC Indonesia Indonesian Pocket Tax Book 2024 57

Value Added Tax

The validity of particular tax invoices is a key to successfully

claiming the input VAT as a tax credit. A tax invoice must

generally contain the following minimum information:

a. the name, address and NPWP of the taxpayer delivering

the taxable goods or services;

b. the name, address and identication number of the

purchaser;

c. the type of goods or services, the quantity, the sales

price or compensation and any discounts;

d. the VAT that has been collected;

e. the Luxury-goods Sales Tax (LST) collected (if any) on

luxury goods;

f. the code, serial number and date of issue of the invoice;

and

g. the name and signature of the authorised signatory to

the invoice.

Failure to satisfy the minimum information requirement will

mean that the input VAT cannot be used as a tax credit.

PKPs are required to prepare its tax invoice in electronic

format (electronic Faktur Pajak/e-FP). Specically for Retailer

PKP, requirements under point b and g are not required.

A tax invoice must be issued at:

a. the time of delivery of taxable goods or services;

b. the time a payment is received if the payment is

received prior to the delivery of taxable goods or

services;

58 Indonesian Pocket Tax Book 2024 PwC Indonesia

Value Added Tax

c. the time a term-payment is received in the case of

delivery of a part of the work phase; or

d. such other time as maybe stipulated by an MoF regulation.

VAT refunds

Refund applications can be made at the end of a book year.

The DGT is required to make a decision on a VAT refund

application, on the basis of a VAT audit, within 12 months

of the receipt of a complete application. If no decision has

been made within 12 months, the application is considered

to have been approved.

Relevant supporting documents for a VAT refund must be

delivered to the DGT within one month of the application

date. Any documents delivered after that period may be

ignored by the DGT in the VAT refund calculation.

Early VAT refunds are possible for certain taxpayers (see

pages 100-101 concerning early tax refunds).

VAT facilities on certain goods/services

The deliveries and/or import/utilisation of certain taxable

goods/services are given VAT facilities in the form of

exemption or non-collection. The determination of these

goods/services are made through a GR which is based

on the limited scope as stipulated under the VAT Law. The

below list refers to the rules as of 1 April 2022.

PwC Indonesia Indonesian Pocket Tax Book 2024 59

Value Added Tax

VAT exemption facilities

Import/delivery of certain taxable goods

a. polio vaccine and vaccines in handling COVID-19;

b. certain general education and religious books; and

c. taxable goods received by certain parties in handling

national disasters.

Delivery of certain taxable services

a. construction services to build religious places; and

b. certain services in handling national disasters.

Import of certain strategic taxable goods

a. factory machinery and equipment required for

manufacturing taxable goods;

b. goods produced in the marine and shery sector;

c. untanned raw hides and skins;

d. livestock with certain criteria;

e. seeds and seedlings from agricultural, plantation,

forestry, animal husbandry, or shery goods;

f. animal feed, not including pet animal feed;

g. sh feed with certain requirement;

h. certain materials for manufacturing animal and sh feed;

i. silver handicraft raw materials in granules and/or bars;

j. weapons for national security;

k. certain equipment and spare parts for providing

boundary data and aerial photographs used by the

armed forces;

l. special presidential service vehicle imported by certain

parties, which is granted import duty exemption;

60 Indonesian Pocket Tax Book 2024 PwC Indonesia

Value Added Tax

m. goods for public places and nature conservation, which

are granted import duty exemption;

n. certain staple goods that are highly needed by the public;

o. certain white crystal consumption sugar;

p. goods resulting from mining/drilling taken directly from

the source, excluding coal mining products;

q. liqueed natural gas and compressed natural gas;

r. goods for public interest imported by the government

which are granted import duty exemption;

s. certain imported medicines, which are granted import

duty exemption; and

t. certain imported human therapy materials, blood

grouping materials, and tissue type materials, which are

granted import duty exemption.

Delivery of certain strategic taxable goods

a. similar taxable goods under point (a) to (i), (k), and (n)

to (q) in the list of import of certain strategic taxable

goods;

b. units of public ats nanced under certain conditions;

c. public houses, pondok boro, student dormitories, as

well as workers' houses with certain limitation;

d. electricity, including electricity connection and

subscription fees, except for houses with power above

6,600 VA;

e. clean water;

f. combat gears, special land vehicles, radars, and their

spare parts, delivered to certain parties; and

PwC Indonesia Indonesian Pocket Tax Book 2024 61

Value Added Tax

g. materials for manufacturing goods in point (f) which are

imported by and to be submitted to certain parties.

Delivery/utilisation of certain strategic taxable services

a. medical health services;

b. social services;

c. postal delivery services;

d. nancial services;

e. insurance services;

f. educational services;

g. non-advertising broadcasting services;

h. land and water public transport services, and domestic

leg of foreign air transport services;

i. labour services;

j. public telephone services using coins;

k. money transfer services by postal money orders;

l. rental services for public ats and houses; and

m. services received by the armed forces which are utilised

to provide boundary data and aerial photographs.

VAT non-collected facilities

Import/delivery of certain strategic taxable goods and

delivery/utilisation of certain strategic taxable services

a. transportation vehicles and spare parts thereof, used by

the armed forces and the state police;

b. ships and its spare parts, and certain equipment used

by certain water-related industry players;

62 Indonesian Pocket Tax Book 2024 PwC Indonesia

Value Added Tax

c. aircraft and its spare parts, and certain equipment used

by national commercial airlines;

d. trains and its spare parts, certain equipment, and

infrastructure used by national train enterprises;

e. certain services received by certain water-related

industry players;

f. certain services received by national commercial airlines;

g. train maintenance or repair services received by

national train enterprises; and

h. gold bars other than for the foreign exchange reserves.

Import of taxable goods exempted from Import Duty

a. gifts for public worship, charity, social, or cultural

purposes with certain conditions;

b. goods for scientic research and development

purposes by certain parties;

c. goods for disabled people by the governing body;

d. crates/other packages containing bodies or ashes;

e. goods transferred by Indonesian workers and students

abroad, civil servants, members of the armed forces

and national police with certain requirements;

f. personal belongings of passengers, carrier crew, border

crossers, and parcels up to a certain amount limit;

g. temporary imported goods;

h. goods used by the upstream oil and gas business or

geothermal business contractors;

i. re-imported goods in the same quality as when they

were exported;

j. re-imported goods that have been exported for the

purposes of repair, work, and testing;

PwC Indonesia Indonesian Pocket Tax Book 2024 63

Value Added Tax

k. goods and materials to be processed, assembled, or

installed on other goods that have KITE facilities;

l. goods and materials or machines imported by small

businesses under KITE facilities;

m. goods used by the contractors of certain coal mining

contracts; and

n. gifts for natural disaster relief by certain parties.

VAT on e-commerce

Indonesian VAT will be imposed on the utilisation of certain

intangible goods and services provided from overseas to

Indonesian customers through an electronic system.

Foreign sellers, foreign service providers, or foreign

e-commerce marketplaces and domestic e-commerce

marketplace will be appointed as VAT Collectors if their

activity in the Indonesian market meets either of the

following thresholds:

• transaction value with customers in Indonesia

exceeding IDR 600 million in a year or IDR 50 million in

a month; or

• access to their e-commerce platform from Indonesia

exceeds 12,000 users in 12 months, or 1,000 users in

one month.

The appointed VAT Collectors must collect and pay the

VAT from customers as well as submit reports through the

designated electronic tax ling system provided by the DGT.

64 Indonesian Pocket Tax Book 2024 PwC Indonesia

Luxury-goods Sales Tax

In addition to VAT, deliveries or imports of certain manufactured

taxable goods may be subject to LST. A particular item will only

attract LST once, i.e., tax will be charged either on importation

of the goods or on delivery by the (resident) manufacturer to

another party.

LST must be accounted for every month together with

VAT. The importer or the manufacturer of the goods is held

responsible for the settlement of the LST.

A summary of the indicative LST rates is set out below. It

should be noted that the inclusion of a particular item in

the summary does not necessarily mean that the item will

always be subject to LST. Whether or not the particular

item is subject to LST depends on other factors, including

capacity, size, or price.

To ascertain whether or not a particular item is subject to

LST and to identify the LST rate, reference should be made

to the Customs Book using the relevant Harmonised System

(HS) code.

According to the VAT and LST Law, the LST rate may be

increased up to 200%, however currently the LST rates are

between 10% to 95%.

PwC Indonesia Indonesian Pocket Tax Book 2024 65

Luxury-goods Sales Tax

Group

LST Rates (%)

10 12 15 20 25 30 40 50 60 70 75 95

Luxury residences

such as luxury

houses,

apartments,

condominiums,

town houses and

the like



Balloons, dirigibles,

and other non-

powered aircraft



Shotguns and other

arm cartridges,

rearms and

other arms, except

for the state

purposes

 

Aircraft other than

those for the state

or commercial

air-transport

purposes



Luxury cruisers,

except for the need

of the state and

public transport as

well as yacht for

tourism



Motor vehicles

          

66 Indonesian Pocket Tax Book 2024 PwC Indonesia

Carbon Tax

Carbon Tax is to be imposed on carbon emissions, which

have a negative impact on the environment. The subjects

of Carbon Tax are individuals or companies purchasing

goods containing carbon and/or carrying out activities

that result in a certain level of carbon emissions within a

certain period. The priority for the Carbon Tax imposition

will be the companies. Carbon taxpayers consist of Carbon

Tax collectors and the above Carbon Tax subjects. These

taxpayers may be subject to payment, reporting, and

recording obligations following a specic procedure (i.e.

Carbon Tax collectors should do ling on monthly basis

whilst Carbon Tax subject should be on annual basis).

The rate of Carbon Tax shall be at least the carbon price

in the domestic carbon market per kg CO2e. However, the

rate shall not be less than IDR 30/kg CO2e. The Carbon

Tax is due upon the purchase of goods containing carbon,

at the end of calendar year when the carbon is emitted, or

other designated timing.

Taxpayers who participate in emission trading (under “cap

and trade” mechanism) and emission offset as well as other

mechanisms (in accordance with laws and regulations in

the environmental sector) can be granted a Carbon Tax

PwC Indonesia Indonesian Pocket Tax Book 2024 67

Carbon Tax

reduction and/or other benets for the fullment of Carbon

Tax obligation.

The rst implementing regulation for Carbon Tax stipulating

the “cap and trade” mechanism for Coal-Fired Power

Plant (under Minister of Energy and Mineral Resources

Regulation No. 16/2022) was issued at the end of 2022.

The rst reporting of Carbon emission and its resulting

Carbon Tax (if any) should be led by 30 April 2024 and

Carbon Tax (if due) should be paid before ling.

To facilitate the carbon trading (currently for emission

offset), the Government of Indonesia launched the

Indonesian carbon exchange (IDXCarbon) on 26 September

2023.

68 Indonesian Pocket Tax Book 2024 PwC Indonesia

Customs and Excise

Import Duty

Import duty is generally payable at rates from 0% - 150%

on the customs value of imported goods. Customs

value is calculated on Cost, Insurance and Freight level

(CIF).

Group Goods Rate (%)

Automobiles Passenger and commercial 5 to 50

Automobile

components

Incompletely Knocked Down 0 to 7.5

Part by Part 0 to 10

Vessels

Ships, boats and oating

structures

0 to 5

Aircraft

Balloons, helicopters,

aeroplanes, parachutes, and

aircraft launching gear

Electronic goods

Camera, refrigerator, cellular

phone and others

0 to 20 or, IDR

21,450/minute

Textile, textile

products

and accessories

Bags, footwear, harnesses,

apparels, and clothing

accessories, etc.

0 to 35

Beverages, ethyl

alcohol and

alcoholic drinks

Ethyl alcohol, juice, beer, wine,

spirits and other beverages

5 to 150 or,

IDR 14,000/ltr

PwC Indonesia Indonesian Pocket Tax Book 2024 69

Customs and Excise

Group Goods Rate (%)

Essential oils and

resinoids

Odoriferous substances 5 to 150

Agricultural products Animal and vegetable products

0 to 20 or, IDR

450/kg

Furniture

Bedding, mattresses, lamp

and lighting ttings, and others

0 to 20

Toys

Toys, games and sport

requisites, parts and

accessories thereof

5 to 20

Plastic Plastics and article thereof 0 to 25

Rubber Rubber and article thereof 0 to 15

Wood Wood and article thereof 0 to 25

Steel Steels and article thereof 0 to 20

Others

Chemicals, pharmaceutical

products, software, works of

art, arms and ammunition,

musical instrument, and others

0 to 40

As a commitment to liberalising trade, the Indonesian

Government is progressively lowering import duty rates on

most products. Higher duty rates remain to protect certain

industries and goods regarded as sensitive for security

or social and cultural reasons. On top of normal import

duty rates, there are several additional import duty rates

on certain products such as anti-dumping, safeguard,

compensation, and requital import duty rates.

70 Indonesian Pocket Tax Book 2024 PwC Indonesia

Customs and Excise

ASEAN duty rates

Limited relief is given to Association of South East Asian

Nations (ASEAN) countries on imports of goods that have

fullled the origin criteria i.e. wholly obtained or not wholly

obtained from the origin country and have been directly

shipped between such countries. Indonesian Government

implements the ASEAN Trade In Goods Agreement

(ATIGA) since 1 January 2010.

This scheme is intended to increase inter-ASEAN trade by

reducing duty rates on most goods to 0% import duty.

Agreements on preferential duty rates

Indonesia has also implemented preferential duty rates

agreements with other countries, either through trade

agreements or economic partnership agreements that is

carried out bilaterally or through regional agreements.

Import duty relief/exemption/deferral

The Indonesian Government offers import duty relief,

exemption, and/or deferral concessions to foreign and/or

domestic investors in order to promote the development

of local and export-oriented industries. This concession

usually combined with other tax facilities such as VAT and

income tax (please refer to pages 73-85 on the relevant tax

concession). Certain entities that import goods related to

Research and Development (R&D) activities can also be

granted with import duty and/or excise exemptions.

PwC Indonesia Indonesian Pocket Tax Book 2024 71

Customs and Excise

Export Duty

Export duty can be calculated based on a certain

percentage of customs value (ad valorem) or specically

based on duty rate/quantity in a certain currency. Customs

value is determined by the Director General of Customs

and Excise in accordance with the price benchmark set by

Minister of Trade.

Group Goods Rate

Leather and wood

Leather made from certain furry

animals, veneer, chip wood,

processed wood

2% to 25%

Cocoa beans 0% to 15%

Palm fruit, Crude

Palm Oil (CPO) and its

derivative products

Fresh fruit bars, CPO, Crude

Palm Kernel Oil (CPKO),

hydrogenated CPO/CPKO,

Palm Fatty Acid Distillate

(PFAD), biodiesel

USD 0 to

431 /

Metrics Ton

Rened mineral

products

Certain metals 5% to 15%*

Certain mineral

products

Certain nickel and bauxite 10%

* The export duty rates depend on the construction progress of the smelter

facility and applicable from 1 January until 31 May 2024.

72 Indonesian Pocket Tax Book 2024 PwC Indonesia

Customs and Excise

Excise

Excise is imposed on certain goods for which distribution

and consumption needs to be controlled due to their

potential negative effect on society. Currently, goods subject

to excise are alcoholic products and tobacco products.

Group Rate

Ethyl alcohol IDR 20,000/litre

Alcoholic drink IDR 16,500/litre to IDR 152,000/litre

Ethyl alcohol concentrate IDR 1,000/gram or IDR 228,000/litre

Tobacco products

IDR 10 to IDR 110,000/stick or gram or

millilitre for certain tobacco products

PwC Indonesia Indonesian Pocket Tax Book 2024 73

Tax Concessions

This Tax Concessions section will outline the high level

information on the prominent tax facilities in Indonesia. The

implementation of the tax facilities may apply differently

under various conditions. The detailed requirements and

application procedures are available in the respective

regulations.

Income tax concessions

Tax Holiday

The MoF may provide an avenue for CIT reduction of 50%

or 100% of the CIT due for 5–20 years from the start of

commercial production depending on the investment value.

After the period for which the CIT reduction is granted, the

taxpayer will be provided with CIT reduction of 25% or 50%

of CIT payable for the following two scal years depending

on the investment value.

This facility is provided to rms in pioneer industries which

have a wide range of connections, provide additional value

and high externalities, introduce new technologies, and

have strategic value for the national economy. Currently

this facility is available for the business sectors with specic

Indonesian Standard Classication of Business Field

74 Indonesian Pocket Tax Book 2024 PwC Indonesia

Tax Concessions

(Klasikasi Baku Lapangan Usaha/KBLI) as listed in

the regulation. Business sectors outside this list may also

apply by fullling the self-assessed quantitative scoring

system to justify their nature as a pioneer industry.

Generally, an application must be submitted via the Online

Single Submission (OSS) system, which will verify the

eligibility of the application and pass it on to the MoF. Under

the latest regulation, proposals can be submitted to the MoF

until 8 October 2024.

Tax Allowance

The MoF may provide the following tax concessions to

limited liability companies (Perseroan Terbatas) following their

investment in certain designated business areas or in certain

designated regions:

• A reduction in net income of up to 30% of the

amount invested, prorated at 5% for six years of the

commercial production, provided that the assets

invested are not transferred out within six years;

• Accelerated depreciation and/or amortisation

deductions;

• Extension of tax losses carry-forward for up to 10 years;

• A reduction of the withholding tax rate on dividends

paid to non-residents to 10% (or lower if treaty relief is

available).

PwC Indonesia Indonesian Pocket Tax Book 2024 75

Tax Concessions

The applicant must meet the following high level criteria to

be eligible for the above tax facilities:

• high investment value or for export purposes;

• high absorption of manpower; or

• high local content.

Generally, an application must be submitted via the OSS

system and will be approved by the MoF.

Super Deduction Facility

The super deduction facility will be given to certain

industries as follows:

• facility for labour-intensive industries; in the form of a

reduction in net income of 60% of the amount invested

in the form of tangible xed assets (including land

utilised for main business), spread throughout a certain

period;

• facility for human resources development in certain

competencies; in the form of a reduction in gross income

of up to 200% of the amount spent for this activity;

• facility for certain R&D activities in Indonesia; in the

form of reduction in gross income of up to 300% of the

amount spent for this activity.

Tax cut for public companies

A 3% corporate tax cut can be granted to public companies

which satisfy the following conditions:

• At least 40% of their paid-in shares are listed for trading

in the IDX. Shares owned by certain related parties and

treasury shares cannot be counted for this purpose;

76 Indonesian Pocket Tax Book 2024 PwC Indonesia

Tax Concessions

• The public should consist of at least 300 parties, each

holding less than 5% of the paid-in shares.

These two conditions must be maintained for at least 183

days in a tax year. If in a particular year either or both of the

conditions are not met, the facility is not applicable for that year.

Tax-neutral mergers

Generally, transfers of assets in business mergers,

consolidations, acquisition, or business splits must be at

market value. Gains resulting from this kind of restructuring

are assessable, whilst losses are generally claimable as a

deduction from income.

However, a tax-neutral merger, consolidation, or acquisition

under which assets are transferred at book value, can

be conducted but is subject to the approval of the DGT.

To obtain this approval, the merger, consolidation, or

acquisition plan in question must pass a business-purpose

test. Tax-driven arrangements are prohibited and therefore

tax losses from the combining companies may not be

passed to the surviving company.

Subject to a similar, specic DGT approval, the same

concession is also available for business splits. Registration

for an Initial Public Offering (IPO) or additional foreign capital

injection may be required for these types of transactions.

PwC Indonesia Indonesian Pocket Tax Book 2024 77

Tax Concessions

Tax facility for venture capital company investment in small

and medium enterprises

The dividends received by a Venture Capital Company

(VCC) from capital participation in a micro, small, or

medium sized enterprises of which the shares are not

traded at IDX, with certain requirements, are non-taxable.

Reinvestment of branch prots

Prot after tax of PE in Indonesia are exempted from Branch

Prot Tax if the PE reinvest their prot within the same year

or no later than the following year in certain investment

option within certain period.

LST concessions

LST incentive for motor vehicles

LST incentive is available for “green” motor vehicles in the

form of LST base reduction (currently to 0% to 93

1/3

of the LST base) that will effectively lower the applied LST

or mean there is even no LST for certain motor vehicles.

Concessions on special projects and special zones

Foreign loan-funded and foreign grant-funded Government

projects

Government projects funded with foreign loans or foreign

grants may be eligible for special tax treatment for the

income derived from that funding. The projects that typically

78 Indonesian Pocket Tax Book 2024 PwC Indonesia

Tax Concessions

qualify are set out in the state Project Table of Contents

(Daftar Isian Proyek/DIP) or other similar documents.

Main contractors, consultants and suppliers for foreign

grant-funded or loan-funded Government projects may

have their income tax liability borne by the Government.

This facility is not available for second-level contractors,

consultants and suppliers.

Apart from the above concessions, the main contractors,

consultants and suppliers also enjoy the following tax

facilities on the importation of goods and the use of foreign

taxable services and/or foreign intangible goods for foreign

grant-funded or foreign loan-funded Government projects:

• Exemption from import duty;

• Non-collection of VAT and LST;

• Non-collection of Article 22 Income Tax on imports.

If a qualifying project is only partially funded by a foreign loan or

a foreign grant, the tax facilities are determined proportionally to

the amount of the foreign loan or foreign grant.

Public Private Partnership/PPP (Kerjasama Pemerintah

dengan Badan Usaha)

This facility is intended to promote and improve cooperation

between the Government and business entities with respect

to the provision of infrastructure and social services. The

facility can be approved by the MoF based on the proposal

from the responsible institution for cooperation projects.

PwC Indonesia Indonesian Pocket Tax Book 2024 79

Tax Concessions

Integrated Economic Development Zones

Companies conducting business in an Integrated Economic

Development Zone (Kawasan Pengembangan Ekonomi

Terpadu/KAPET) may enjoy income tax facilities similar

to Inbound Investment Incentives under the Income Tax

Concessions. The designation of an area as a KAPET is set

out in a specic Presidential Decree.

In addition to the above facility, an Entrepreneur in Bonded

Zone (Pengusaha Di Kawasan Berikat/PDKB) in a KAPET

may be granted tax facilities in the form of:

• Non-collection of VAT and LST on importation of certain

goods;

• Exemption of Article 22 Income Tax on importation of

certain goods;

• Postponement of import duty on capital goods and

equipment, and goods and material for processing;

• Non-collection of VAT and LST on the domestic

purchases of certain goods.

Bonded Stockpiling Area

Bonded Stockpiling Area (Tempat Penimbunan Berikat)

currently consists of:

1. Bonded Zone;

2. Bonded Warehouse;

3. Bonded Exhibition Place;

4. Duty Free Shop;

5. Bonded Auction Place;

80 Indonesian Pocket Tax Book 2024 PwC Indonesia

Tax Concessions

6. Bonded Recycling Area; and

7. Bonded Logistic Centre.

We will only highlight three prominent areas in the below

sections.

The tax facilities in these areas are as follows:

• Non-collection of VAT and LST on importation of certain

goods;

• Non-collection of Article 22 Income Tax on importation

of certain goods;

• Postponement of import duty on certain goods;

• Exemption of excise on importation of certain goods;

and

• Non-collection of VAT and LST on the domestic

purchases of certain goods.

Bonded Zones

The Bonded Zone (Kawasan Berikat) facility is provided to

manufacturing companies with export orientation, import

substitution, supporting downstream industry, and certain

industries such as aircraft, shipbuilding, railways, and the

defense and security industry. There is a domestic sales

quota of 50% of the previous year export realisation value

and/or sales value to other Bonded Zones/Free Trade

Zones/Special Economic Zones.

PwC Indonesia Indonesian Pocket Tax Book 2024 81

Tax Concessions

Bonded Warehouse

The Bonded Warehouse (Gudang Berikat) facility is intended

to store imported goods which can be processed with one

or more simple activities of certain goods to be released in

certain period.

Bonded Logistic Centre

The Bonded Logistic Centre (Pusat Logistik Berikat) facility

is similar to the Bonded Warehouse facility, however, it is

intended to store both imported goods from outside the

Customs Area and/or goods from other places within the

Indonesia Customs Area which can be processed with one

or more simple activities within three years since the goods

entering the Bonded Logistic Centre.

Free Trade Zones

Goods entered into and goods delivered amongst

companies inside Free Trade Zone (FTZ) or Kawasan

Perdagangan Bebas dan Pelabuhan Bebas may also enjoy

tax facility. The designation of an area as an FTZ is set out in

a specic Presidential Decree.

Taxpayers in FTZ are entitled to the following tax facilities:

• Exemption of VAT and LST on importation of certain

goods;

• Non-collection of Article 22 Income Tax on importation

of certain goods;

• Exemption of import duty on certain goods;

• Exemption of excise on importation of certain goods;

82 Indonesian Pocket Tax Book 2024 PwC Indonesia

Tax Concessions

• Non-collection of VAT and LST on the domestic

purchases of certain goods and services; and

• Transactions of intangible goods and taxable services

are exempted from VAT, except for those delivered

to Other Places within Indonesia Customs area and

Bonded Stockpiling Area or Special Economic Zones

companies.

Special Economic Zones

Taxpayers conducting business in Special Economic Zones

(Kawasan Ekonomi Khusus/KEK) may enjoy tax facilities.

The business should cover the main activities determined

for each KEK. The designation of an area as a KEK is set out

in a specic GR.

Tax Holiday may be granted for taxpayers conducting main

activities in KEK. The potential Tax Holiday on the CIT due

is applicable for 10–20 years from the start of commercial

production depending on the investment value. After the

period for which the Tax Holiday is granted, the taxpayer will

be provided with CIT reduction of 50% of CIT payable for

the following two scal years.

Taxpayers being rejected for the CIT Reduction facility and

taxpayers carrying out other activities in KEK, may apply for

KEK-Tax Allowance facility which facilities are similar to the

Tax Allowance facilities under the Income Tax Concessions

(please refer to pages 74-75 on the relevant tax concession).

PwC Indonesia Indonesian Pocket Tax Book 2024 83

Tax Concessions

On top of the above income tax facilities, taxpayers in KEK

are also entitled to the following tax facilities:

• Non-collection of VAT and LST on importation of certain

goods;

• Non-collection of Article 22 Income Tax on importation

of certain goods;

• Exemption of import duty on importation of certain

goods during the construction and development stage;

• Postponement of import duty for certain entities during

the production stage;

• Non-collection of VAT on the utilisation of taxable

services and/or intangible taxable goods from outside

the Customs Area;

• Exemption of excise on certain goods to be used to

produce non-excisable goods;

• Non-collection of VAT and/or LST on the domestic

purchases of certain goods or services;

• Non-collection of VAT and/or LST on certain

transactions within or between the Special Economic

Zones companies;

• Non-collection of income tax on certain land and

building transactions;

• Special tax treatments for certain transactions in

tourism KEK; and/or

• Potential Regional Tax reduction of 50% up to 100%.

Industrial Zone

The determination and licensing of an Industrial Zone

(Kawasan Industri/KI) are as granted by the Government.

84 Indonesian Pocket Tax Book 2024 PwC Indonesia

Tax Concessions

The applicable tax facilities depend on the classication

of the Industrial Development Area/IDA (Wilayah

Pengembangan Industri/WPI) of the KI, namely:

1. Advance IDA (WPI Maju/WPIM)

2. Developing IDA (WPI Berkembang/WPIB)

3. Potential I IDA (WPI Potensial I/WPIP I)

4. Potential II IDA (WPI Potensial II/WPIP II)

Below are the available tax facilities for each type of WPI:

Tax and customs facility WPIM* WPIB

WPIP

CIT Reduction of 10% - 100%

of the CIT due for 5 – 15 years

from the start of commercial

production



— —



Income tax facilities similar

to Tax Allowance under the

Income Tax Concessions

  

—

VAT exemption on the

imports/purchase of machines and

equipment (excluding spare parts)

that are directly used to produce

VATable goods

   

Import duty exemption on

the imports of machines or

materials that are used to

produce goods/services**

   

* WPIM may choose to apply income tax facility in the form of CIT Reduction

or Tax Allowance.

** The applicable period of import duty exemption varies depending on

the KI classication and the business cycle of the respective taxpayer, e.g.

construction or developing stage.

PwC Indonesia Indonesian Pocket Tax Book 2024 85

Tax Concessions

BKPM Masterlist facility

BKPM may also provide import duty exemption through the

issuance of a Masterlist facility for importing machinery and

raw materials. An importer can also obtain an exemption

from VAT, LST, and/or Article 22 Income Tax by applying to

the DGT for approval.

Tax Exemption and Drawback Facilities for Exports

Tax facilities under the scheme of ease of imports for the

production of goods to be fully exported (Kemudahan Impor

Tujuan Ekspor/KITE) are as follows:

KITE Exemption

This exemption facility allows for most raw materials to be

imported without payment of import duty, provided that the

nished products are exported. The VAT and/or LST on such

importations are not-collected either.

Further incentives are also available for small to medium

enterprises, whereby the operational requirements are less

stringent. The import duty exemption and non-collection

of VAT and/or LST are available on the importation of raw

materials, sample goods, and machinery.

KITE Drawback

This drawback facility allows for the recovery of import duty

paid on imported raw materials that are incorporated into

nished products which are subsequently exported.

86 Indonesian Pocket Tax Book 2024 PwC Indonesia

Tax Concessions

National Capital named “Nusantara”

Business players who invest in the new National Capital

named “Nusantara” (Ibu Kota Negara bernama Nusantara/

IKN) are given several facilities under the authority of the

Central Government or IKN Authority, as follows:

1. Income Tax:

a. CIT reductions in the IKN and Partner Regions

(Daerah Mitra/DM);

b. CIT reductions and withholding tax exemptions in

Financial Centres;

c. CIT reductions for establishment/relocation of

headquarters/regional ofces to the IKN;

d. Super deduction for internship programmes and/or a

vocational training;

e. Super deduction for R&D activities;

f. Super deduction for donations and/or building

public, social, and/or other non-prot facilities;

g. Final Article 21 Income Tax facilities borne by the

government;

h. Zero-rated nal tax for Micro, Small and Medium

Enterprises;

i. Income Tax reduction on transfer of Land and/or

Building rights.

2. VAT/LST facility in the form of VAT not-collected or LST

exemption on the delivery of certain taxable goods and

services.

PwC Indonesia Indonesian Pocket Tax Book 2024 87

Tax Concessions

3. Import Duty and Article 22 exemption as well as VAT Not-

collected facilities are available on imports of certain capital

goods as well as certain goods and materials originating

from Free Trade Zones, Special Economic Zones, and/or

Bonded Stockpiling Areas.

4. Special tax and revenue:

a. Zero-rated (0%) Duty on the Acquisition of L&B

Rights (Bea Perolehan Hak atas Tanah dan Bangunan)

for certain periods on certain types of Rights to Land

(Hak Atas Tanah);

b. A charge of IDR 0 for the granting of a building

approval and certicate of proper function for a

certain period.

5. Facilitation, land provision, and infrastructure for the

implementation of investment activities in the IKN:

a. the provision of land/locations for business players;

b. the provision of facilities/infrastructure;

c. the provision of investment convenience and

security; and/or

d. easy access to ready-to-use and skilled labor.

88 Indonesian Pocket Tax Book 2024 PwC Indonesia

Regional Taxes

Regional Taxes is governed under the Financial

Relationships between the Central Government and

the Regional Government (Hubungan Keuangan antara

Pemerintah Pusat dan Pemerintahan Daerah/HKPD) Law.

This Pocket Tax Book only provides an overview of the

Regional Taxes with more details on Land and Building

(L&B) tax, tax on transfer of L&B and duty on the acquisition

of L&B rights.

The Regional Tax/Duty rates and “Opsen”

Below is a summary of the tax rates under HKPD Law:

No. Type of Tax/Duty HKPD rate

Rural and Urban Land and Building Tax

(Pajak Bumi dan Bangunan Perdesaan dan

Perkotaan/PBB-P2)

Max. 0.5%

Duty on the Acquisition of Land and Building

Rights (Bea Perolehan Hak atas Tanah dan

Bangunan/BPHTB)

Max. 5%

Motor Vehicle Tax (Pajak Kendaraan

Bermotor/PKB)

ownership – general Max. 1.2%

ownership onwards – general Max. 6%

ownership – Special Region Max. 2%

PwC Indonesia Indonesian Pocket Tax Book 2024 89

Regional Taxes

No. Type of Tax/Duty HKPD rate

ownership onwards – Special Region Max. 10%

Specied uses (e.g. public transportation,

re trucks, school buses, ambulances,

etc.)

Max. 0.5%

Opsen 66% of PKB

4 Heavy Equipment Tax (Pajak Alat Berat/PAB) Max. 0.2%

Duty on the Transfer of Motor Vehicle Title

(Bea Balik Nama Kendaraan Bermotor/

BBNKB)

ownership – general

Max. 12%

ownership onwards – general

Special Region Max. 20%

Opsen 66% of BBNKB

Motor Vehicle Fuel Tax (Pajak Bahan Bakar

Kendaraan Bermotor)

Max. 10%

Non-metal Minerals and Rocks Tax (Pajak

Mineral Bukan Logam dan Batuan/MBLB)

General Max. 20%

Special Region Max. 25%

Opsen 25% of Pajak MBLB

8 Surface Water Tax (Pajak Air Permukaan) Max. 10%

9 Cigarette Tax (Pajak Rokok) 10%

10 Advertisement Tax (Pajak Reklame) Max. 25%

11 Groundwater Tax (Pajak Air Tanah) Max. 20%

90 Indonesian Pocket Tax Book 2024 PwC Indonesia

Regional Taxes

No. Type of Tax/Duty HKPD rate

Swallow's Nest Tax (Pajak Sarang Burung

Walet)

Max. 10%

Certain Goods and Services Tax (Pajak

Barang dan Jasa Tertentu/PBJT)

Food and Beverage Max. 10%

Electric Power

General use of electricity Max. 10%

Electricity from other sources by

industries and Oil and Gas mining

Max. 3%

Self-produced electricity Max. 1.5%

Hotel services Max. 10%

Parking services Max. 10%

Art and Entertainment services

General Max. 10%

Karaoke, night clubs, etc. 40% - 75%

Land and Building Tax

Land and building tax (Pajak Bumi dan Bangunan/PBB) is

a tax on property chargeable on all land and/or buildings,

unless exempted. Each regional Government has to issue a

regulation (Peraturan Daerah/PERDA) to regulate PBB in its

territory.

PwC Indonesia Indonesian Pocket Tax Book 2024 91

Regional Taxes

The scope of PBB under HKPD Law covers all land and

building except for the following industries which are

governed by separate regulations:

• forestry;

• plantation;

• mining;

• other industries located in national waters outside the

territory of regional area.

The negative list setting out land and buildings not subject

to PBB under HKPD Law includes those:

• Used by central and regional Government that are

registered as state property or regional property;

• Used for public interest in the areas of religious, social

care, health, education, and national culture, which are

not intended to gain prot;

• Used as a cemetery, ancient heritage site, or the like;

• Constituting protected forests, natural reserve forests,

tourism forests, national parks, grazing land controlled

by a village, and state land with no right imposed on it;

• Used by a diplomatic representative, based on the

reciprocal treatment principle;

• Used by an agency or representative of an international

organisation, as determined by the MoF;

• Used for railway lines, Mass Rapid Transit, Light Rail

Transit, or the like;

• Other residential buildings based on a certain sale

value of the tax object (Nilai Jual Objek Pajak/NJOP)

determined by the Head of Region.

92 Indonesian Pocket Tax Book 2024 PwC Indonesia

Regional Taxes

PBB is payable annually following a Tax Due Notication

Letter (Surat Pemberitahuan Pajak Terhutang/SPPT) issued

by the Regional Government.

An individual or an organisation that owns a right to a piece

land, and/or takes benets there from, and/or owns, controls,

and/or takes benets from a building can by law be regarded

as the PBB taxpayer for that piece of land and/or building.

Under HKPD Law, the PBB rate is maximum 0.5% and the

tax due is calculated by applying the tax rate on a certain

percentage of NJOP (ranging from 20% to 100%) deducted

by non-taxable NJOP. Any changes are to be made by

issuing a PERDA. The non taxable NJOP is set at IDR 10

million at the minimum. In the event that a taxpayer owns

or controls more than one PBB object in one area, the non-

taxable NJOP is only given to one PBB object for each scal

year.

Tax on land and building transfer

A transfer of rights to land and building will give rise to

income tax on the deemed gain on the transfer/sale to be

charged to the transferor (seller). The tax is set at 2.5% of

the gross transfer value (tax base). However, for transfers

of simple houses and simple apartments conducted by

taxpayers engaged in a property development business, the

tax rate is 1%. This tax must be paid by the time the rights

to land and building are transferred to the transferee. All the

tax paid constitutes a nal tax.

PwC Indonesia Indonesian Pocket Tax Book 2024 93

Regional Taxes

In general, the tax base is the higher of the transaction

values stated in the relevant land and building right transfer

deed and Sale and Purchase Binding Agreement (Perjanjian

Pengikatan Jual Beli) based on actual transaction value

or amount that should have been received depending

on the type of transaction. However, in a transfer to the

Government, the tax base is the amount ofcially stipulated

by the Government ofcer in question in the relevant

document. In a Government-organised auction, the gross

transfer value is the value stipulated in the relevant deed of

auction.

Duty on the acquisition of land and building rights

A transfer of land and building rights will typically also give

rise to duty on the acquisition of land and building rights

(Bea Pengalihan Hak atas Tanah dan Bangunan/BPHTB)

liability for the party receiving or obtaining the rights.

BPHTB is also a part of regional taxes which are governed

under HKPD Law. Qualifying land and building rights

transfers include sale-purchase and trade-in transactions,

grants, inheritances, contributions to a corporation, rights

separations, buyer designation in an auction, the execution

of a court decision with full legal force, business mergers,

consolidations, expansions, and prize deliveries.

BPHTB is based on the Tax Object Acquisition Value (Nilai

Perolehan Objek Pajak/NPOP), which in most cases is the

higher of the market (transaction) value or the NJOP of

the land and building rights concerned. The tax due on a

94 Indonesian Pocket Tax Book 2024 PwC Indonesia

Regional Taxes

particular event is determined by applying the applicable

duty rate of a maximum of 5% to the relevant NPOP, minus

an allowable non-taxable threshold. The non-taxable

threshold amount varies by region: the minimum is IDR 80

million, except in the case of an inheritance, for which starts

from IDR 300 million. The Government may change the non-

taxable threshold via regulation.

BPHTB is typically due on the date that the relevant deed

of land and building right transfer is signed before a public

notary. In a business merger, consolidation, or expansion,

the duty is due on the date of signing of the merger,

consolidation or expansion act. In an auction, the duty is

due on the date of signing date of the Auction Report by the

authorised ofcer.

PwC Indonesia Indonesian Pocket Tax Book 2024 95

Stamp Duty

Stamp duty is nominal, and payable as a xed amount of

IDR 10,000 on certain documents.

Examples of documents subject to stamp duty are as

follows:

a. Agreements, certicates, statement letters, or similar

documents, and their copies.

b. Notarial deeds and grosse, and their copies and excerpts.

c. Deeds of a Land Deed Ofcer and their copies.

d. Securities in any form and name.

e. Securities transaction document.

f. Auction documents in the form of excerpts, minutes,

copies and grosse.

g. Documents stating a sum of money above IDR

5,000,000 which describe the receipt of money or

contain an acknowledgement of debt payment or

settlement, either entirely or partially.

h. Documents to be used as instruments of evidence

before a court.

Stamp duty may be exempted for certain documents,

such as documents on the transfer of Land and Building

rights solely for religious or non-commercial activities

and documents on the implementation of Government

programmes.

96 Indonesian Pocket Tax Book 2024 PwC Indonesia

Tax Payments and Tax Return Filing

Tax liabilities for a particular period or year must typically

be paid to the State Treasury through a designated tax-

payment bank (bank persepsi) and then accounted for to

the ITO through the ling of the relevant tax returns. Tax

payments and tax returns ling for a particular tax must

be undertaken monthly or annually, or both monthly and

annually (depending upon the tax obligation in question).

Tax payments should generally be conducted electronically.

The opportunity to use electronic channels to complete tax

ling obligations is also available.

A summary of these tax obligations is as follows:

Monthly tax obligations

Type of tax Tax payment

deadline

Tax return ling

deadline

Article 21/26 Income Tax The 10

of the

following month

The 20

of the

following month

Article 25 Income Tax The 15

of the

following month

The 20

of the

following month

Tax Payments and Tax Return Filing

PwC Indonesia Indonesian Pocket Tax Book 2024 97

Tax Payments and Tax Return Filing

Type of tax Tax payment

deadline

Tax return ling

deadline

Article 4(2), Article 15, Article 22,

Article 23/26:

• Withholding tax mechanism

• Self-remit

• The 10

the following

month

• The 15

the following

month

The 20

of the

following month

VAT and LST – PKP Prior to the tax

return ling

deadline

The end of the

following month

VAT and LST – VAT Collector Vary depends on the type of Tax

Collector

Annual tax obligations

Type of tax Tax payment

deadline

Tax return ling

deadline

CIT The end of the fourth

month after the book

year end before ling

the tax return

The end of the fourth

month after the book

year end

Individual Income Tax The end of the third

month after the year

end before ling the

tax return

The end of the third

month after the year

end

98 Indonesian Pocket Tax Book 2024 PwC Indonesia

Tax Payments and Tax Return Filing

Type of tax Tax payment

deadline

Tax return ling

deadline

PBB Six months after the

receipt of a Tax Due

Notication Letter

(SPPT) from the

Regional Government

N/A

Late payments of the above taxes incur interest penalties

based on the applicable monthly MoF Interest Rate plus

surcharge for a maximum of 24 months. Part of a month, for

example a single day, is considered a full month.

Late ling of a tax return or failure to le a tax return incurs

an administrative penalty at the following amounts:

Type of tax return IDR

VAT return 500,000

Other monthly tax returns 100,000

Individual income tax return 100,000

CIT return 1,000,000

PwC Indonesia Indonesian Pocket Tax Book 2024 99

Tax Payments and Tax Return Filing

For AITR, taxpayers may extend the ling deadline by up to

two months. This may be done by ling a written notication

to the DGT before the deadline, together with a tentative

tax calculation. The tax due according to the tentative

calculation (if any) must be settled before submitting the

extension notication. If the actual tax due based on the

nal tax calculation is higher than the tentative calculation,

an interest penalty based on the applicable monthly MoF

Interest Rate will apply to the difference until the shortfall is

paid, for a maximum of 24 months.

Failure to le a tax return by the relevant deadline may

result in the DGT to issue a warning letter to the taxpayer

in question. The warning letter will typically require the

taxpayer to le the tax return within 30 days of the warning

letter date. Ignoring such a letter can prompt the DGT to

issue an ofcial tax assessment along with an administrative

penalty of 50% of the assessed tax.

Except for corporate and individual income taxes, taxes are

to be accounted for on a decentralised basis. A company

with business units (branches) spread over the country must

accordingly account for the tax obligations to the district

service tax ofces with which the branches are registered.

Please refer to page 54 regarding centralisation of VAT

reporting.

In general, the main form of a tax return must be prepared

in electronic format (e-tax returns), except for certain

100 Indonesian Pocket Tax Book 2024 PwC Indonesia

Tax Payments and Tax Return Filing

taxpayers. E-tax returns can be led to the ITO electronically

(e-ling) by submitting the e-tax returns through DGT’s

website or by using an application service provider. E-ling

is mandatory for certain type of taxes for certain taxpayers.

Early tax refunds

An early tax refund is available for taxpayers that meet

certain criteria, as follows :

A. Golden Taxpayers

1) Submit tax returns in a timely manner;

2) Have no tax arrears for all types of taxes, except

tax arrears which have obtained a permit to pay tax

in instalments or that have been audited;

3) Financial Statement audited by a public accountant

or the audit board with an Unqualied Opinion for

three consecutive years; and

4) Never have been convicted of a tax crime in the

last ve years.

B. Taxpayers with low refund values

1) Individuals that do not have any business or

freelance activity that apply for an income tax

refund in their AITR;

2) Individuals that have business or freelance

activities that apply for income tax refund in their

AITR of a maximum of IDR 100 million;

3) Companies that apply for an income tax refund in

their AITR of a maximum of IDR 1 billion; or

PwC Indonesia Indonesian Pocket Tax Book 2024 101

Tax Payments and Tax Return Filing

4) PKPs that apply for VAT refund in their VAT Return

of a maximum of IDR 5 billion.

C. Low-risk PKPs

Companies that engage in the following business

activities are considered as low-risk PKPs:

1) Export Activities;

2) Delivering VATable goods and/or services to a VAT

Collector; and/or

3) Delivering VATable goods and/or services for

which VAT is not collected.

A preliminary tax refund is requested by way of ticking the

refund box in the relevant tax return. If the approved tax

refund amount is different from the requested amount, the

taxpayer can re-apply using a separate letter. However, the

taxpayer needs to revise the relevant tax return if they do

not want to re-apply. The DGT will conduct a formal and/or

material examination on all applicants.

The tax ofce can still do a tax audit on the tax year or

period that has been granted a preliminary tax refund and

the administrative sanctions will be followed if the tax audit

results in a tax underpayment positions.

102 Indonesian Pocket Tax Book 2024 PwC Indonesia

Accounting for Tax

Generally, for tax purposes, a company’s bookkeeping must

be maintained in accordance with the prevailing accounting

standards unless the tax law stipulates otherwise. Individuals

who carry out business or freelance activities must maintain

bookkeeping. However, if the gross turnover from the main

business or freelance activities has been subjected to nal tax

or non-tax object and are below IDR 4.8 billion in a year, the

taxpayer only needs to conduct recording.

By default, the bookkeeping must be maintained in Rupiah,

composed in Indonesian, and stored in Indonesia. Subject

to specic DGT approval, foreign-investment (Penanaman

Modal Asing/PMA) companies, PEs, subsidiaries of foreign

companies, taxpayers listed overseas, and taxpayers

presenting their nancial statements in their functional

currency of USD in accordance with the Financial

Accounting Standards (Standar Akuntansi Keuangan/SAK)

applicable in Indonesia can maintain their bookkeeping in

USD and compose them in English. A collective investment

contract (Kontrak Investasi Kolektif/KIK) is allowed to

use USD accounting to the extent that it issues USD-

denominated investment funds.

Accounting for Tax

PwC Indonesia Indonesian Pocket Tax Book 2024 103

Accounting for Tax

An application for DGT approval must be led with the

DGT’s ofce no later than three months before the beginning

of the USD accounting year. The DGT is required to decide

on the application within a month. If no decision is made

within that time, the application is automatically approved.

PSCs, CoWs, and IUPs may decide to apply USD

accounting in English simply by notifying the DGT in writing.

This notication must be submitted to the DGT ofce no

later than three months before the beginning of the USD

accounting year.

The use of a foreign language other than English and a

foreign currency other than USD in a company’s

bookkeeping is prohibited. Irrespective of the currency and

the language used, companies typically have to settle their

tax liabilities in IDR (except for PSC companies) and le

tax returns in Indonesian. For CIT, the assertions must be

presented in USD side by side with IDR in the annual CITR.

A company that has obtained approval to maintain USD

accounting may return to IDR accounting subject to DGT

approval. Once approval is granted, the company may not

reapply for USD accounting approval during the ve years

after the cancellation of the USD accounting.

104 Indonesian Pocket Tax Book 2024 PwC Indonesia

Tax Audits and Tax Assessments

Indonesia uses a self-assessment system under which

taxpayers are required to calculate, pay, and report their

tax liabilities in accordance with prevailing tax laws and

regulations. The DGT may then conduct a tax audit to test

this self-assessment compliance with the tax obligations

and issue tax assessment as a result of tax audit.

Tax audits

The tax audit of a company may cover only a particular tax

or all taxes for a particular tax period (a tax month) or tax

year. It may be conducted at the company’s premises, at the

DGT ofces, or at both.

Conditions triggering a tax audit

Most tax refund request will trigger a tax audit, except

for taxpayers eligible for early tax refunds (see page 100-

101). Due to the requirement for the DGT to decide on a

refund request within 12 months, a tax audit will typically

begin from a few weeks to several months from the refund

request date. A CIT refund request will normally trigger a

complete tax audit covering all taxes. A refund request of

any other tax will normally trigger a tax audit covering only

one particular tax. The DGT will likely broaden the tax audit

scope to include other taxes.

PwC Indonesia Indonesian Pocket Tax Book 2024 105

Tax Audits and Tax Assessments

Other than that event, DGT may also set other criteria to

select tax audit target based on risk analysis.

Special tax audit may be conducted for certain purposes

and will be subject to different timeline and procedures from

the general tax audit.

One-month rule

Taxpayers being audited are required to provide documents

and information requested by the tax auditors within a

month of the request date. Failure to provide the documents

or information within a month may prompt the DGT to

determine the tax liabilities on a deemed prot basis. Where

documents and information are not supplied within the one

month period, they cannot be used later by the taxpayer to

dispute the amount of tax assessed.

Closing conference

At the end of a tax audit, the tax auditors will provide the

taxpayer with a written notication of the tax audit ndings

to which the taxpayer must respond in writing if there is a

disagreement. The taxpayer may then reassert its position

with regard to the tax audit corrections and present the

relevant supporting documents in the closing conference

discussion.

If there is still a dispute surrounding a legal basis of an

adjustment during the discussion of the tax audit ndings,

the taxpayer may request a discussion with the Quality

106 Indonesian Pocket Tax Book 2024 PwC Indonesia

Tax Audits and Tax Assessments

Assurance Team (QAT) appointed by the Regional Tax Ofce

or the Directorate of Tax Audit and Collection.

The tax auditors may change some of the suggested

corrections in light of the taxpayer’s response to the tax

audit ndings notication, the discussion result with the

QAT, and the closing conference discussion.

The results of the nal discussion are then summarised

in a closing conference document that is signed by the

tax auditors and the taxpayer. The taxpayer will have

to state Agree or Disagree to each of the proposed

corrections in the document. The corrections agreed to in

the closing conference document will constitute a basis

for the minimum amount the taxpayer must pay of the tax

assessment issued based on the document. The disagreed

portion has not become a tax arrears until the issuance of

the Objection Decision or Tax Court Decision if the taxpayer

les for Objection or Appeal respectively.

Products of a tax audit

The legal products of a tax audit consist mainly of Tax

Assessment Letters (Surat Ketetapan Pajak/SKP) as

mentioned above and Tax Collection Letters (Surat

Tagihan Pajak/STP), which must be based on the closing

conference document. An STP typically serves as a legal

instrument to collect administrative tax sanctions not

covered in an SKP. In certain other situations, it may also

be used by the DGT to collect tax due in a particular tax

PwC Indonesia Indonesian Pocket Tax Book 2024 107

Tax Audits and Tax Assessments

period (month) within the current year and the interest

penalty on this.

Tax assessments

An SKP applies only to one specic tax for one particular

tax period or year and typically takes into account the

following factors:

• The tax due;

• The applicable tax credits;

• The resulting balance between the tax due and the tax

credits (overpaid, nil, or underpaid);

• The administrative penalty (interest or a surcharge).

Types of tax assessment letters

The name of an SKP refers to the resulting balance

between the tax due and the tax credits. Accordingly, there

are three types of SKPs:

• Overpaid Tax Assessment Letter (Surat Ketetapan Pajak

Lebih Bayar/SKPLB) if the tax due is less than the tax

credit amount;

• Underpaid Tax Assessment Letter (Surat Ketetapan

Pajak Kurang Bayar/SKPKB) if the tax due exceeds the

tax credit amount;

• Nil Tax Assessment Letter (Surat Ketetapan Pajak Nihil/

SKPN) if the tax due amount is equal to the tax credit

amount.

108 Indonesian Pocket Tax Book 2024 PwC Indonesia

Tax Audits and Tax Assessments

If an SKPKB is issued, this may include administrative

penalties in the form of interest based on the applicable

MoF Interest Rate, plus a surcharge for a maximum of

24 months, or a 75% surcharge.

Which penalties are applicable will depend on the type

of wrongdoing the taxpayer has committed. The penalty

amounts are determined by the application of the relevant

rate to the underpaid tax amounts. Specic on VAT

assessment, if the penalty may result in the application of

multiple administrative sanction, the DGT will only apply

sanction that has the highest value.

Payments of tax assessment

Tax due based on an SKP must be paid within one month

after the issuance of the relevant SKP. If the taxpayer does

not pay the tax due and not apply for an Objection, the tax

due will be collected using a Distress Warrant.

Statute of limitation

The DGT can issue an SKPKB within ve years after the

incurrence of a tax liability, the end of a tax period (month),

or the end of (part of) a tax year.

Once an SKP for a particular tax of a particular month or

year has been issued, additional SKPs may still be issued

within ve years to the extent there is new data (novum)

or information which was not disclosed (or not adequately

disclosed) in the tax returns and/or during tax audits.

PwC Indonesia Indonesian Pocket Tax Book 2024 109

Tax Audits and Tax Assessments

The issue of an Additional Underpaid Tax Assessment

Letter (Surat Ketetapan Pajak Kurang Bayar Tambahan/

SKPKBT) calls for a 100% surcharge on the tax due as an

administrative penalty. However, a taxpayer may avoid the

surcharge if the SKPKBT was issued based on taxpayer’s

voluntary disclosures prior to DGT conducting a tax audit to

issue the SKPKBT.

The tax due reported in a tax return is considered certain

if no SKP is issued within ve years. Nevertheless, an

SKPKB can still be issued beyond ve years to a taxpayer

who conduct taxation crime on the expired period.

110 Indonesian Pocket Tax Book 2024 PwC Indonesia

Tax Collection Using Distress Warrant

Tax Collection Using Distress

Warrant

If a legal tax collection instrument is not paid within the

required time, the DGT may by law issue a Distress Warrant

(Surat Paksa) to a taxpayer. The instruments include the

following documents:

• STP;

• SKPKB;

• SKPKBT;

• Tax Objection Decision Letters (which demand an

additional payment from the taxpayer);

• Tax Court Decisions (which demand an additional

payment from the taxpayer);

• Correction Decision Letters (which demand an

additional payment from the taxpayer).

The relevant taxpayer is required to pay the underpaid

tax stated in a tax collection instrument within a month of

the instrument date. Any late payments trigger an interest

penalty based on the applicable monthly MoF Interest

Rate for a maximum of 24 months.

Under the current Tax Administration Law, taxpayers are

bound to pay only the minimum amount they have agreed

to in the tax audit closing conference, provided that they

le an Objection or at a later stage, an Appeal in respect to

the particular SKP.

PwC Indonesia Indonesian Pocket Tax Book 2024 111

Tax Collection Using Distress Warrant

The remaining part of the assessment not agreed during

the closing conference will only be due after the DGT has

made a decision on the Objection or the Tax Court makes

a decision on the Appeal that is not in the taxpayer’s

favour.

If the underpaid tax is not paid within the stipulated time

period, the DGT may undertake the following steps as part

of the execution of the Distress Warrant:

a. Issue a Warning Letter (Surat Teguran) if the

underpaid tax is not settled within seven days of

the due date;

b. Issue a Distress Warrant if the underpaid tax is not

settled within 21 days of the issuing of the Warning

Letter;

c. Issue a Conscation Order (Surat Sita) if the

underpaid tax is not settled within 48 hours of the

issuing of the Distress Warrant;

d. Publish an auction announcement with respect to the

conscated assets if the underpaid tax is not settled

within 14 days of the issuing of the Conscation Order;

e. Undertake a public auction if the underpaid tax is not

settled within 14 days of the auction announcement.

112 Indonesian Pocket Tax Book 2024 PwC Indonesia

Tax Dispute and Resolution

A tax dispute between a taxpayer and the DGT will typically

arise following the issuance of an SKP by the DGT which

the taxpayer disputes. An SKPKB, an SKPKBT, and an STP

constitute legal tax collection instruments on the basis of

which the DGT may issue a Distress Warrant if the taxpayer

fails to settle the underpaid tax on time.

The ways available to resolve such tax disputes are as

follows:

Objections

A taxpayer who does not agree with an SKP can submit

an Objection (Keberatan) to the DGT within three months

of the date of issue of the SKP. The Objection must state

the amount the taxpayer has calculated as the tax due and

set out the reasons for its disagreement with the DGT tax

assessment.

The DGT has to issue a decision on the tax Objection within

12 months of the ling date of the Objection. If no decision

is issued by the DGT within 12 months, the Objection is

automatically deemed approved by the DGT.

PwC Indonesia Indonesian Pocket Tax Book 2024 113

Tax Dispute and Resolution

If the Objection is rejected by the DGT, any underpayment

is subject to a surcharge of 30%. However, the underpaid

tax and the surcharge are not payable if the taxpayer les

an Appeal with the Tax Court in respect of the Objection

Decision.

An Objection may also be led by a taxpayer with the DGT

ofce with respect to tax withheld by a third party. The same

time limits on ling the Objection and for the DGT’s decision

apply to this type of Objection.

Appeals

A taxpayer who does not accept the DGT’s Objection

Decision can le an Appeal (Banding) with the Tax Court

within three months of the receipt of the DGT Objection.

To the extent that the DGT Objection Decision calls for a

payment of tax due, according to the Tax Court Law, at least

50% of the tax due must be settled before ling the Appeal.

The Tax Court will typically have to decide on an Appeal

within 12 months. Any underpaid tax resulting from the Tax

Court Decision is subject to a surcharge of 60%.

Other avenues for tax dispute resolution

The DGT, following a taxpayer’s Correction Request, or

by virtue of its ofcial position (ex-ofcio), may correct

or cancel an SKP, an STP, or their derivatives issued on

the basis of those letters. The derivatives include, among

others:

114 Indonesian Pocket Tax Book 2024 PwC Indonesia

Tax Dispute and Resolution

• Objection Decision Letters;

• Decision Letters on the Reduction or Cancellation of

Administrative Sanctions;

• Decision Letters on the Reduction or Cancellation of

Tax Assessment;

• Decision Letters on an Early Refund of Overpaid Tax.

The DGT must issue a decision on a Correction Request

within six months of the date of ling. If no decision is

issued by the DGT within six months, the Correction

Request is automatically deemed to have been approved by

the DGT.

Taxpayers who do not (fully) accept the DGT Decision on

a Correction Request can le a Lawsuit (Gugatan) with the

Tax Court within 30 days of the receipt of the DGT Decision.

A Lawsuit against the DGT can also be led with the Tax

Court for the execution of Distress Warrant. In this case,

the Lawsuit must be led no later than 14 days after the

execution date.

The Tax Court must decide on a Lawsuit within six months.

PwC Indonesia Indonesian Pocket Tax Book 2024 115

Tax Dispute and Resolution

Judicial Review Requests to the Supreme Court

A Tax Court Decision is considered to be a nal decision

with full legal force. However, the parties involved in a tax

dispute may le a Judicial Review Request (Peninjauan

Kembali/PK) on a Tax Court Decision with the Supreme

Court. This can be done only if any of the following

conditions prevail:

1. The Decision has been based on a perjury, a deception,

or false evidence on the part of the opposing party;

2. A piece of important written evidence is found which,

had it been considered previously, would have led to a

different Decision;

3. Some part of the claim has been ignored without

reason;

4. Something which was not demanded was granted;

5. The Decision is clearly inconsistent with prevailing tax

regulations.

A Judicial Review Request must be led with the Supreme

Court within an allowable request time limit. For conditions

1 and 2, the time limit is three months after the condition is

identied. For conditions 3, 4 and 5, the time limit is three

months after the Tax Court decision.

Any underpaid tax resulting from the Supreme Court

Decision is subject to a surcharge of 60%.

116 Indonesian Pocket Tax Book 2024 PwC Indonesia

Contacts

Our Tax professionals are available to advise and help you

with all aspects of taxation and to ensure that you meet your

commitments efciently and promptly.

If you have any queries, contact your usual consultant or

any of the following tax professionals:

General Inquiries

Suyanti Halim

Otto Sumaryoto

Runi Tusita

Mergers & Acquisitions and

International Tax

Andrias Hendrik

Omar Abdulkadir

Legal and Inward Investment

Indra Allen

Adi Pratikto

Danar Sunartoputra

Dimas Bimo

Fiek Mulyana

Indra Natakusuma

Puji Atma

Irene Kurniawan

Narindra Krisnamurti

Contacts

International Assignments

Brian Arnold

Rita Susanto

Trinyotin

Payroll outsourcing

Adi Pratikto

Irene Kurniawan

Energy, Utilities & Resources

Antonius Sanyojaya

Alexander Lukito

Otto Sumaryoto

Suyanti Halim

Turino Suyatman

Omar Abdulkadir

Raemon Utama

Tjen She Siung

Indirect Taxes (VAT)

Abdullah Azis

PwC Indonesia Indonesian Pocket Tax Book 2024 117

Contacts

Consumer, Industrial Products

and Services & Technology,

Media, and Telecommunications

Hendra Lie

Abdullah Azis

Ali Widodo

Andrias Hendrik

Anton A Manik

Ay Tjhing Phan

Brian Arnold

Gadis Nurhidayah

Lukman Budiman

Yuliana Kurniadjaja

Yunita Wahadaniah

Esa Perdana

Gerardus Mahendra

Hyang Augustiana

Marlina Kamal

Nicholas Sugito

Oki Octabiyanto

Sujadi Lee

Susetiyo Putranto

William Christopher

Yessy Anggraini

Customs

Enna Budiman

Made Natawidnyana

Government & Public Services

Alexander Lukito

Adi Pratikto

Suyanti Halim

Fiek Mulyana

Financial Services

Margie Margaret

Yuliana Kurniadjaja

Nikolas Handradjid

Transfer Pricing

Ay Tjhing Phan

Dexter Pagayonan

Peter Hohtoulas

Ryuji Sugawara

Adrian Hanif

Hasan Chandra

Irene Satyanagara

Kianwei Chong

Novie Mulyono

Other contacts

Japan Business Desk

Ryuji Sugawara

China Business Desk

Toto Harsono

Ding Tian

Korea Business Desk

Lok Budianto

Taehun Jung

Inhyuk Park

118 Indonesian Pocket Tax Book 2024 PwC Indonesia

A Summary of Indonesian Tax

The information in this booklet sets out tax law and

practice as of 31 December 2023.

PT Prima Wahana Caraka

(a member rm of PwC network)

WTC 3

Jl. Jend. Sudirman Kav. 29-31

, 36

-43

Floor

Jakarta 12920 - Indonesia

T: +62 21 5099 2901 / 3119 2901

F: +62 21 5290 5555 / 5290 5050

Pakuwon Tower

Floor, Unit 02-06

Tunjungan Plaza 6, Superblok Tunjungan City

Jl. Embong Malang No. 21-31

Surabaya 60261 - Indonesia

T: +62 31 9924 5759

Email: [email protected]

www.pwc.com/id

This publication has been prepared for general guidance on matters of interest only,

and does not constitute professional advice. You should not act upon the information

contained in this publication without obtaining specic professional advice. No

representation or warranty (express or implied) is given as to the accuracy or

completeness of the information contained in this publication, and, to the extent permitted

by law, PwC Indonesia, its members, employees and agents do not accept or assume any

liability, responsibility or duty of care for any consequences of you or anyone else acting,

or refraining to act, in reliance on the information contained in this publication or for any

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The documents, or information obtained from PwC, must not be made available or copied,

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