Tax Rates
CORPORATE INCOME TAX RATE
 
Fiscal Year Rate
2009 28%
2010 25%
 
 
DEEMED PROFIT MARGIN
Toll manufacturing services relating to children's toys rendered by a resident company to its foreign affiliates have their taxable income deemed at 7% of the total manufacturing costs, excluding materials, and are taxable at a single rate of 28%.
 

 

ON GROSS REVENUES EFFECTIVE INCOME TAX RATE

Domestic shipping operations

4% 1,2%

Domestic airline operations

6% 1,8%

Foreign Shipping
and airline operations

6% 2,64%

Foreign oil and gas drilling
service operations

15% 4,20%

Certain Ministry of Trade
representative offices

1% (of export value) 0,42%
 
 
INDIVIDUAL INCOME TAX
 

 

RATE

On the first Rp.50 million

5%

On the second Rp. 200 million

15%

On the third Rp.250 million

25%

Over Rp. 500 million

30%
 
Special tax rates are applicable for resident individual income tax in the forms of a lump sum severance payments:
 
TAXABLE INCOME Rate

Until Rp.50.000.000,-

0%

Over Rp.50.000.000,- until Rp. 100.000.000,-

5%

Over Rp.100.000.000,- until Rp. 500.000.000,-

15%

Over Rp.500.000.000,-

25%

 
Special tax rates are applicable for resident individual income tax in the forms of a lump sum
pension payment from a government approved pension fund, old age security savings payments
from jamsostek:
 
TAXABLE INCOME Rate

On the first Rp.50.000.000,-

0%

Over Rp.50.000.000,- 

5%

 
 
Withholding Taxes
Article 22 - Imports
 

EVENT

  TAX RATE  TAX BASE

Import of goods-using an
importer identification (API)

2,5% Import values i.e. CIF
value plus duties payable

Import goods without API

7,5% Import values i.e. CIF
value plus duties payable

The Sale of goods to the Government requiring
payment from the State Treasury and certain
state-owned companies  

1,5% Selling prices

Purchases of steel products

0,30% Selling prices

Purchases of automotive products

0,45% Selling prices

Purchases of paper products

0,10% Selling prices

Purchases of cement

0,25% Selling prices

Purchases of luxury goods

5% Selling prices
 
 
Articles 4 (2) Final Tax
 
DESCRIPTION TAX RATE

Rental of land and/or buildings

10%

Interest on time or saving deposits and Bank Indonesia Certificates (SBI)
other than that payable to banks operating in Indonesia and Government
approved pension funds

20%

Interest on bonds other than that payable to banks operating
in Indonesia and Government-approved pension funds

15%

Sales of shares on Indonesian Stock Exchanges

0,1% / + 0,5%

Income from from lottery prizes

25%

Proceeds from transfers of land and building rights

5% / 1%  

Fees for construction work performance

2% / 3% / 4% 

Fees for construction work planning and supervision

4% / 6%

Forward contract derivatives (applicable to the initial margin)

2,5%

Interest on Koperasi deposits (applicable for individual)

0% / 10%
 
 
ARTICLE 17 (2D)
 
DESCRIPTION TAX RATE

Dividends for individual taxpayers

10%

 
 
ARTICLE 23 - RESIDENT
 
SERVICES EFFECTIVE TAX RATE
Dividends 2%
Interest 2%
Royaltie 2%
Prizes and awards 2%
Rentals of assets other than land and buildings 2%
Technical services 2%
Management services 2%
Consulting services 2%
Appraisal services 2%
Actuary services 2%
Accounting services 2%
Design services 2%
Drilling services for oil and gas mining except those performed by permanent establishment 2%
Support services for oil and gas mining 2%
Mining services other than oil and gas and support 2%
Flight and airport support services 2%
Forest felling services 2%
Waste processing services 2%
Labor supply / outsourcing services 2%
Intermediary / agency services 2%
Custodianship and storage services except for those
performed by stock exchanges, KSEI and KPEI
2%
Sound dubbing services 2%
Film mixing services 2%
Computer and software related services 2%
Installation services (electricity, machinery, telephone equipment)
except for those rendered by qualifying construction companies
2%
Maintenance and improvement services 2%
(electricity, machinery, telephone equipment) except
for those rendered by qualifying construction companies
2%
Construction contracting 2%
Manufacturing services ("Maklon") 2%
Investigation and security services 2%
Event organizer services 2%
Packaging services 2%
Provision of space and/or time for dissemination information 2%
Pest eradication 2%
Cleaning services 2%
Catering services 2%
 
 
ARTICLE 23 - RESIDENT
Resident taxpayers, organizations, and representatives of foreign companies are required to withhold 20% from the following payments to non residents:
1. On gross amounts:
  • Dividends
  • Interest including premiums, discounts (interest), swap premiums, and guarantee fees;
  • Royalties, rents and payments for the use of assets;
  • Fees for services, work and activities;
  • Prizes and awards;
  • Pensions and any other periodic payments; and
  • After-tax profits of a branch or PE.
2. On Estimated Net Income :
 
  Estimated
Net Income
Effective
Tax Rate

Insurance premiums paid to non residents insurance companies:

 

 

by the insured 50% 10%
by the Indonesian Insurance Companies 5% 10%
by the Indonesian Reinsurance Companies 2% 1%
Sale of non listed shares by non residents 25% 5%
Sale by non residents of a conduit company
where this company serves as an intermediary
for the holding of Indonesian company shares or a PE.
25% 5%