Asia-Pacific · Tax guide
Indonesia
Indonesia taxes companies at 22%, offers a 0.5% final tax on turnover for small businesses, charges VAT at 12% (effectively 11% on most goods and services), withholds 20% on payments to non-residents, and applies the global minimum tax. Filing, payment and invoicing run through the Coretax system of the Directorate General of Taxes (DJP).
At a glance
- Corporate income tax
- 22%
- Small-business final tax
- 0.5%
- VAT
- 12% (effectively 11% on most goods and services)
- Withholding on payments abroad
- 20%
- TP documentation
- Rp 50,000,000,000
- Global minimum tax
- 15%
Lower for qualifying listed companies
Turnover up to Rp 4,800,000,000
PKP registration above Rp 4,800,000,000
Article 26, before treaty relief
Gross revenue above which it is required
Large multinational groups
Corporate income tax
Companies pay 22%, with monthly instalments (PPh 25) and an annual return within four months of the year-end. Small businesses with turnover up to Rp 4,800,000,000 can instead pay a final tax of 0.5% on gross turnover; who may use it, and for how long, was changed in 2026, so check eligibility.
VAT and e-Faktur
VAT is 12% (effectively 11% on most goods and services). Businesses must register as VAT-able entrepreneurs (PKP) once turnover exceeds Rp 4,800,000,000, issue e-Faktur through Coretax, and file monthly.
Withholding taxes
Companies withhold income tax on salaries (PPh 21), on services, rent and interest paid to residents (PPh 23 and final PPh 4(2)), and file unified monthly withholding returns. Payments to non-residents carry 20% (Article 26) unless the recipient provides a certificate of residence to claim a treaty rate.
Transfer pricing and the global minimum tax
Related-party transactions must be at arm's length; a master file and local file are required when gross revenue exceeds Rp 50,000,000,000. Large multinational groups are subject to the global minimum tax at 15%.
Key dates
- By the 15th of each monthPayment of withheld taxes and monthly instalments
- End of the following monthMonthly VAT return
- Within four months of the year-endAnnual corporate income tax return
Figures and sources
8 figures- Corporate income tax rate22%Checked against the official source
- Final tax on gross turnover for small businesses0.5%Checked against the official source
- VAT rate12% (effectively 11% on most goods and services)Checked against the official source
- Withholding on dividends, interest, royalties and services paid to non-residents (Article 26)20%Checked against the official source
- Annual gross turnover limit for the small-business final taxRp 4,800,000,000Checked against the official source
- Annual turnover above which a business must register as a VAT-able entrepreneur (PKP)Rp 4,800,000,000Checked against the official source
- Gross revenue above which a master file and local file are requiredRp 50,000,000,000Checked against the official source
- Global minimum tax rate15%Checked against the official source
Indicative only. This assessment is a high-level overview of tax obligations in Indonesia based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Indonesia (a registered tax consultant) before making compliance decisions.