Taxes in Indonesia in 2026 - rates and residency

An individual becomes a tax resident of Indonesia if they live in the country, spend more than 183 days there within 12 months, or are present during the financial year with the intention of residing there.

Who counts as a tax resident

An individual is treated as a tax resident of Indonesia if any of the following applies:

They live in Indonesia.
They spend more than 183 days in Indonesia within any 12 months.
They are present in Indonesia during the financial year and intend to reside there.

Main rates

Personal income tax - 5-35%. A tax resident pays on worldwide income, but the rate can be reduced by a double tax treaty.
Corporate income tax - 22%.
VAT - 11%.
Property tax - 2.5%.

How to reduce your tax burden legally and apply a double tax treaty - we cover this on a consultation.

Features of the Indonesian tax system

Double tax treaties

The personal income tax rate can be reduced if a DTA is in force between Indonesia and your country.

Clear residency criteria

Resident status is set by clear rules: living in the country, the number of days spent there, or the intention to stay.

Moderate VAT

The 11% VAT rate is lower than in many countries in Asia and Europe.

FAQ

When do you become a tax resident of Indonesia?

You are treated as a resident if you live in Indonesia, spend more than 183 days there within any 12 months, or arrive during the financial year intending to stay. Meeting any one of these is enough. It is worth counting the days in advance so that residency does not start by accident.

How much is personal income tax in Indonesia?

Personal income tax is progressive, from 5% to 35%. The exact rate depends on the size and the type of your annual income. Some categories of income are taxed under their own rules.

Do you have to pay tax on income earned abroad?

A tax resident of Indonesia pays tax on worldwide income. The rate can be reduced under a double tax treaty where one exists between the countries. You will need a tax residency certificate and supporting documents for that.

What taxes does a company pay in Indonesia?

Corporate income tax is 22% and VAT is 11%. Some industries and regimes have special conditions. The final burden depends on the structure of the business and where the clients are.

What is the property tax in Indonesia?

The property tax rate is 2.5%. The tax base and the payment procedure depend on the type of property, the owner's status and the nature of the transaction. The rules change from time to time, so it is worth checking the calculation for the specific property.

Related programs and destinations

All programs - Indonesia:

Residence Digital nomad

Similar destinations:

Don’t want to figure this out alone?

We handle the whole process end to end: we check your documents, match a program to your situation and give you honest timelines and costs. Leave your details and a migration expert will get back to you. The first consultation is free.