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Withholding tax in Indonesia 2026
The default for non-residents is blunt: 20% of the gross payment, final, on Indonesian income of nearly every kind — dividends, interest, royalties, fees.
Residents live with a web of smaller withholdings instead: 20% on bank-deposit interest, 10% on bonds, 15% on royalties, and 0.5% collected by e-commerce platforms on sellers' turnover.
At a glance
- top rate
- 20% (non-residents, most income)
- entry band
- 10% on bond interest
- tax year basis
- Taken when the payment is made
- filing deadline
- Final withholding ends the filing duty for that income
- residency basis
- Indonesian-source payments
- regime flag
- No tax number? Dividend, interest and royalty withholding doubles
Rates
Withholding on non-residents (2026)
| Rate | Base | Applies to |
|---|---|---|
| 20% | Gross | Dividends, interest, royalties, fees and most other Indonesian income — final, before treaty relief |
| 10% | Gross | Bond interest and discounts |
| 5% effective | Sale proceeds | Unlisted Indonesian shares and luxury items over IDR 10 million |
| 0.1% | Transaction value | Listed-share sales through the exchange |
Withholding residents meet (2026)
| Rate | Base | Applies to |
|---|---|---|
| 20% | Gross interest | Bank time deposits and savings — final; refundable for people below the taxable threshold |
| 10% | Gross | Bond interest and discounts — final |
| 15% | Gross | Royalties and general interest — creditable against the annual bill |
| 0.5% | Gross turnover | Online sellers — collected by appointed e-commerce platforms |
| 5% – 35% | Monthly pay | Employment income under the monthly effective-rate tables, trued up each December |
Thresholds & allowances
- Daily-worker exemptionUnder IDR 450,000 a day
No withholding unless monthly income passes IDR 4.5 million or pay is monthly
- Exemption letterAvailable on application
For taxpayers with losses to offset, excess credits, or wholly final-taxed income
Residency
Residency trigger
The 20% rate hits Indonesian-source payments to anyone outside the residence tests; export-earnings deposit accounts enjoy reduced 0-10% rates on their returns.
Non-resident treatment
Properly withheld final tax closes the matter — no return needed; refunds are available where a treaty rate was over-applied.
Notes
- Missing a tax identification number doubles the withholding on dividends, interest, royalties and technical fees — 15% becomes 30%.
- Treaty relief needs a certificate of domicile; Indonesia's wide network lowers the 20% for most investor countries.
- Resident withholding on services and activities ranges from 2% to 35% depending on the payment class.
- Severance and pension lump sums have their own final scales — see the income tax page.
FAQ
What is Indonesia's withholding tax for non-residents?
A flat 20% final tax on gross Indonesian income, with bonds at 10% — and tax treaties bring both down for most countries.
Is bank interest taxed in Indonesia?
Yes — 20% final withholding on deposit and savings interest, though people whose income sits below the taxable threshold can claim it back.
Figures: tax year 2026, compiled from public sources. Not tax advice.