Expatriate tax ebook - Indonesia
Facts and figures
Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation
Pre arrival procedures
Expatriates who require a work visa must apply for this before taking up employment in Indonesia.
Employment visas
An expatriate taking up employment in Indonesia must apply for a work permit before commencing employment. A local sponsor, who is usually the employing company in Indonesia, is required to support the application for the employment permit. In addition to the work permit, the expatriate should also obtain a temporary stay permit for him or herself and any dependents.
Tax year
The Indonesian tax year runs from 1 January to 31 December.
Tax returns and compliance
Indonesia operates a self-assessment regime whereby taxpayers file an annual tax return and self-assess the tax liability for the year. The latest filing date is 31 March and the latest additional tax payment, if any, is 25 March.
Income tax rates
Expatriates are taxed at progressive rates according to net taxable income. The existing tax rates are as follows:
|
Rupiah (IDR) | |
|---|---|
| 0 – 25,000,000 | 5% |
| 25,000, 001 – 50,000,000 | 10% |
| 50,000,001 – 100,000,000 | 15% |
| 100,000,001 – 200,000,000 | 25% |
| 200,000,001 + | 35% |
Sample income tax calculation
|
Taxable gross salary: |
Total | |||||
|---|---|---|---|---|---|---|
| Income | ||||||
| (IDR) | ||||||
| Salary |
832.532.967 | |||||
| Salary |
532.532.967 | |||||
| Allowance |
300.000.000 | |||||
|
832.532.967 | ||||||
| Less: occupational allowance | ||||||
| 5% of gross income (maximum IDR108,000/month) |
(1.296.000) | |||||
| 2% of social security contribution (by expatriate) |
(16.650.659) | |||||
|
814.586.308 | ||||||
| Annualised income |
814.586.308 | |||||
| Less: permanent deduction |
(15.600.000) | |||||
| Net taxable income |
798.986.308 | |||||
| Tax on regular income calculation: | ||||||
| Income tax for a year | ||||||
| First IDR 25m |
5% |
1.250.000 | ||||
| Next IDR 25m |
10% |
2.500.000 | ||||
| Next IDR 50m |
15% |
7.500.000 | ||||
| Next IDR 100m |
25% |
25.000.000 | ||||
| More than IDR 200m |
35% |
209.645.100 | ||||
| Total tax payable |
245.895.100 | |||||
Information about Indonesia:
Last updated 13 March 2008
This information has been provided by Grant Thornton Hendrawinata, the Indonesian member firm within Grant Thornton International Ltd, and is for informational purposes only. Neither Grant Thornton Hendrawinata nor Grant Thornton International Ltd can guarantee the accuracy, timeliness or completeness of the data contained herein. As such, you should not act on the information without first seeking professional tax advice.
Grant Thornton International Ltd and the member firms are not a worldwide partnership. Services are delivered independently by the member firms.
Disclaimer
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