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Dividend tax in Indonesia 2026
Reinvest your Indonesian dividends at home for at least 3 years and the tax is 0%; keep the cash and a 10% final tax falls due, paid by you by the 15th of the following month.
Foreign dividends can be exempt too — fully for listed companies, and for unlisted ones if at least 30% of the after-tax profit comes back to Indonesia.
At a glance
- top rate
- 10% final on unreinvested domestic dividends
- entry band
- 0% when reinvested in Indonesia for 3+ years
- tax year basis
- Calendar year; reinvest within 3 months of year-end
- filing deadline
- Self-remit the 10% by the 15th of the month after receipt
- residency basis
- Resident individuals; non-residents face 20% withholding
- regime flag
- Qualifying reinvestments listed by Finance Ministry regulation
Rates
How dividends are taxed (2026)
| Rate | Base | Applies to |
|---|---|---|
| 0% | — | Domestic dividends reinvested in qualifying Indonesian instruments for at least 3 years |
| 10% | Unreinvested amount | Final tax, remitted by the individual by the 15th of the following month |
| 0% | — | Offshore dividends from listed companies, if reinvested 3 years; unlisted ones need 30%+ of after-tax profit reinvested |
| 20% | Gross | Non-residents — final withholding, before treaty relief |
Thresholds & allowances
- Reinvestment windowEnd of the third month after the fiscal year
Qualifying vehicles include financial-market and approved real-economy investments
Residency
Residency trigger
The exemption belongs to resident individuals who actually park the money in Indonesia; the holding period runs 3 years from the year the dividend arrived.
Non-resident treatment
Non-residents see 20% withheld at source on Indonesian dividends, cut by many tax treaties.
Notes
- Reinvest only part of a dividend and only that part is exempt — the remainder carries the 10% final tax.
- Dividends are reported in the unification return; before 2025 a validated payment counted as filing.
- Payees without a tax identification number face doubled withholding rates on dividends, interest and royalties.
- The exemption dates from the 2020 Job Creation law, replacing the old system where dividends were taxed twice.
FAQ
How much tax do I pay on Indonesian dividends?
0% if you keep them invested inside Indonesia for a minimum of 3 years; otherwise a 10% final tax that you pay yourself by the 15th of the next month.
Are foreign dividends taxed in Indonesia?
They can be exempt: listed-company dividends fully, if reinvested for 3 years, and unlisted-company dividends when at least 30% of after-tax profit is brought into Indonesia.
Figures: tax year 2026, compiled from public sources. Not tax advice.