Indonesia

An individual is an Indonesian tax resident if they reside in Indonesia, are present in Indonesia for more than 183 days in any 12-month period, or are present in Indonesia during a fiscal year with an intention to reside there. An Indonesian citizen present for less than 183 days in any 12-month period may instead be treated as a non-resident if they meet additional criteria, such as having a permanent home, centre of vital interests, or habitual abode outside Indonesia.

The tax year is the calendar year. Employers withhold monthly income tax from employees' salaries, with the monthly instalment due by the 15th of the following month and its return by the 20th; the annual individual income tax return, and any final payment due, must be filed by the end of the third month after the calendar year ends.

20% — Non-resident individuals are subject to a general withholding tax of 20% on their Indonesian-sourced income, though this may be reduced where a double taxation agreement applies.

Deductible employment expenses include a capped occupational expense allowance, mandatory old-age social-security contributions, and pension contributions. Resident individuals also receive an annual personal allowance for themselves, their spouse, and up to three dependants, deductible against taxable income and unavailable to non-residents; qualifying charitable and religious contributions to government-recognized bodies are separately deductible.

Foreign nationals who become Indonesian tax residents and meet certain skill requirements can, for their first four years of residency, be taxed only on Indonesian-sourced income rather than worldwide income, under a provision added by the Omnibus Law. This territorial treatment may not apply where the individual instead relies on an applicable tax treaty for their overseas income.

Indonesian businesses ("pengusaha kecil") with annual gross turnover not exceeding IDR 4,800,000,000 may choose whether to register as a Pengusaha Kena Pajak (PKP, taxable entrepreneur); registration becomes mandatory once turnover exceeds that threshold, due by the end of the month following the month it was exceeded.

Indonesia zero-rates the export of goods and a defined range of exported services, including toll manufacturing, repair and maintenance, and freight-forwarding services on export-oriented goods, and services whose output is used outside Indonesia's customs area; the delivery of taxable goods on consignment, and transfers of goods as a capital contribution in place of shares, are treated as non-VATable.