The principal taxes applicable to companies doing business in Indonesia are CIT.
branch profit tax, WHT, value added tax (VAT) and luxury-goods sales tax (LST), and
various other indirect levies, such as tax on land and buildings, regional taxes, and
stamn duty. There is no excess profit tax or alternative minimum tax. Tax exemntions and various tax incentives are available to qualified entities.
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Indonesia Quick Tax Facts for Companies |
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CIT rate |
FY2019: 25%6 FY 2020 and FY 2021: 22% FY 2022 and thereafter: 40% |
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Branch Profit tax (BPT) rate |
20% |
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Capital gains tax rate |
0.1% - 25% |
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Basis |
Worldwide, with certain exemptions for dividends and business profits |
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Participation exemption |
Yes |
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Loss relief |
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- Carryforward |
No 5 Years |
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Withholding Tax |
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- Branch profit tax |
20% (nonresident); 10%/ exempt (resident) 20% (nonresident); 15%/20% (resident) 20% (nonresident); 15% (resident) 20% (nonresident); 2% (resident) 20% |
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Capital tax |
No |
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Social Security contributions (employer contribution) |
0.24% - 4% |
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Land and building tax |
0.3% - 0.5% |
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Land and building acquisition duty |
5% |
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Transfer Tax |
0.1% (transfer of shares listed on Indonesian stock exchange), 5% (transter of shares in non-listed resident company by a nonresident: 0%/0.5%6/1.0%/2.5% of gross proceeds tranfer of land/or building) |
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Source : Deloitte 2021
