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Indonesia tax guide 2026
Indonesia taxes residents on worldwide income across five bands from 5% to 35%, but much of what investors earn is settled by tiny final taxes instead: 0.1% on listed-share sales, 0.21% on crypto trades through licensed exchanges, and 10% on dividends you choose not to reinvest. There is no inheritance tax, and qualifying expat specialists can run 4 years on Indonesian-source income only.
- Rate range
- 5% – 35%
- Key allowance
- IDR 54 million personal allowance, plus IDR 4.5 million each for a spouse and up to 3 dependants
- Tax year
- Calendar year
- Filing deadline
- End of March (third month after year-end)
Taxes covered
- Income tax35%
Five bands from 5% to 35%; the top rate starts above IDR 5 billion and there are no surcharges.
- Dividend tax0% / 10%
Domestic dividends are exempt when reinvested in Indonesia for 3 years; unreinvested amounts pay a 10% final tax you remit yourself.
- Capital gains tax0.1% – 35%
Gains join ordinary income at 5-35%, but the assets most people sell carry final taxes instead: 0.1% on listed shares and 2.5% on property, both on the sale price.
- Crypto tax0.21%
Selling crypto costs a final 0.21% of the transaction value on licensed domestic platforms — 1% if you trade on foreign or unappointed platforms.
- Social security≈4%
Employees pay 1% for health (capped), 2% for old-age savings and 1% for the pension (capped) — roughly 4% of salary in total.
- Inheritance tax0%
Indonesia has no inheritance tax and no gift tax; inheritances are exempt income in the heir's hands.
- Withholding tax20%
Non-residents face a flat 20% final withholding on gross Indonesian income; bonds are 10% and treaties cut most rates.
Special regimes
- Expert-expat territorial window
Foreign nationals with special expertise in science, technology, engineering or mathematics pay tax on Indonesian income only for their first 4 years of residence.
- Dividend reinvestment exemption
Domestic dividends are tax-free if you keep them invested inside Indonesia for a minimum of 3 years — otherwise a 10% final tax applies.
- Tiny final taxes on trades
Listed-share sales cost 0.1% of the transaction and crypto trades 0.21% on licensed exchanges — flat, final, and done.
- No inheritance or gift tax
Estates pass at 0%, and inheritances are exempt income in the heir's hands.
- Small-business 0.5% final tax
Entrepreneurs with turnover up to IDR 4.8 billion can pay 0.5% of gross turnover, with the first IDR 500 million tax-free.
Recent changes
- 2026-03The salary cap for pension contributions rose to IDR 11,086,300 a month (from IDR 10,547,400).
- 2025-08Crypto tax overhaul: the final income tax on trades became 0.21% on licensed domestic platforms and 1% on foreign platforms, and crypto sales stopped attracting value added tax after the asset class was reclassified as a financial asset.
- 2025-01The new Core Tax Administration System took over all filings, and expat applicants for the 4-year territorial treatment must now show their last 2 annual returns.