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Income tax in Indonesia 2026
You pay 5% on the first IDR 60 million of taxable income and climb four steps to 35% above IDR 5 billion — after an IDR 54 million personal allowance has already come off.
Residents owe tax on worldwide income, but a qualifying expat specialist can elect Indonesian-source-only taxation for the first 4 years.
At a glance
- top rate
- 35% above IDR 5 billion
- entry band
- 5% on the first IDR 60 million
- tax year basis
- Calendar year
- filing deadline
- End of March; entrepreneurs also file monthly
- residency basis
- Worldwide; resident via home, 183+ days in 12 months, or documented intent to stay
- regime flag
- 4-year territorial election for expats with science/technology expertise
Rates
Income tax bands (2026)
| Taxable income (IDR) | Rate |
|---|---|
| 0 – 60 million | 5% |
| 60 – 250 million | 15% |
| 250 – 500 million | 25% |
| 500 million – 5 billion | 30% |
| Over 5 billion | 35% |
Marginal rates apply within each band.
Final tax on severance and pension lump sums
| Amount (IDR) | Severance rate | Pension lump-sum rate |
|---|---|---|
| Up to 50 million | 0% | 0% |
| 50 – 100 million | 5% | 5% |
| 100 – 500 million | 15% | 5% |
| Over 500 million | 25% | 5% |
Thresholds & allowances
- Personal allowanceIDR 54 million
Plus IDR 4.5 million for a non-working spouse and IDR 4.5 million per dependant (maximum 3)
- Working-spouse additionIDR 54 million + 4.5 million
Where a wife's independent income is assessed jointly with her husband's
- Occupational expense deduction5% of gross pay, max IDR 6 million a year
Automatic for employees; pensioners get 5% capped at IDR 2.4 million
- Small-business final tax0.5% of gross turnover
Business turnover up to IDR 4.8 billion; the first IDR 500 million is free of the charge
- Pension fund contributionsFully deductible
Payments to approved pension funds
Residency
Residency trigger
You are resident if Indonesia is your home, you spend more than 183 days there in any 12 months, or your permits and contracts show you intend to stay. Residents are taxed on worldwide income; any part of a day counts as a day.
Non-resident treatment
Non-residents pay a flat 20% final withholding on gross Indonesian income, with no allowances. Indonesian citizens abroad 183+ days can be treated as non-resident if their home, economic centre and tax registration have genuinely moved.
Notes
- Employers withhold monthly using an effective-rate table (since 2024), with a December true-up at the progressive rates — most employees still file the annual return by end-March.
- Entrepreneurs and professionals pay monthly instalments (0.75% of each location's turnover) and file monthly returns within 15 days of month-end.
- The 4-year expat territorial treatment needs tax-office approval, proof of expertise (certificate plus 5 years' experience), a knowledge-transfer duty — and it cannot be combined with treaty benefits.
- Losses carry forward 5 years (10 in some industries designated by the Finance Ministry); capital losses on shares are deductible.
- Couples file jointly or separately by choice; married taxpayers attach an extra income-and-assets computation either way.
FAQ
What is the top income tax rate in Indonesia?
35%, on taxable income above IDR 5 billion a year — a band added in 2022.
Do expats pay Indonesian tax on foreign income?
Resident expats normally do, but specialists in science, technology, engineering or mathematics can elect Indonesian-source-only taxation for 4 years with tax-office approval.
When is the Indonesian tax return due?
Within 3 months of year-end — 31 March for the calendar year; e-filing is compulsory in most offices.
Figures: tax year 2026, compiled from public sources. Not tax advice.