Indonesia tax
Tax residence: More than 183 days in rolling 12 months. Special regime for new residents: Four-year territorial basis.
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Tax residence
- More than 183 days in rolling 12 months · Presence of more than 183 days (not necessarily consecutive) makes a foreigner a domestic tax subject; residence or intent to reside also qualifies
- Immigration stay authorization and tax-subject status are separate; presence days are counted in total, not consecutively.
- Rates apply from tax year 2022.
Special regimes for new residents
Special regime
Four-year territorial basis for skilled foreigners who become Indonesian tax residents
Tax relief
Details
- On: Income received or obtained from Indonesia
- Who: Foreign citizen who is a domestic tax subject (resident
Foreigners with designated expertise who become domestic tax subjects are taxed only on income received or earned from Indonesia for four tax years from first becoming a domestic tax subject; foreign-source income is outside the Indonesian tax base during that time. 3 1 4 5
Taxed on
Income received or obtained from Indonesia, including pay for work in Indonesia that is paid abroad; income from outside Indonesia is not taxed during the four tax years.
Who it applies to
- Foreign citizen who is a domestic tax subject (resident, or present more than 183 days in 12 months, or present in a tax year intending to reside).
- Holds certain expertise (PMK 18/PMK.03/2021): a foreign worker in one of the positions listed in the annex to PMK 18/PMK.03/2021 or a foreign researcher, with STEM expertise shown by a skill certificate, diploma and/or at least five years of relevant work experience, and a duty to transfer knowledge.
- Applies electronically or in writing to the tax office; the tax office issues an approval letter or a refusal within 10 working days.
Exclusions
- Not available to a foreigner who chooses tax treaty (P3B) benefits instead; the choice is the taxpayer's.
- The four tax years are counted from the first year as a domestic tax subject and keep running if the person leaves Indonesia.
- A foreigner who had already been a domestic tax subject for four tax years on 2 November 2020, when the Job Creation Law took effect, cannot use the benefit.
Days in the country
- More than 183 days in any 12-month period · Presence makes a foreigner a domestic tax subject; residing in Indonesia or intending to reside in a tax year also qualifies
Tax residence
Eligibility rests on Law 11/2020 article 4(1a)-(1e) and PMK 18/PMK.03/2021; the benefit applies for four tax years from first becoming a domestic tax subject.
Visas
Linked to foreign worker status in a designated position or foreign researcher status; tax status depends on residence and permits are separate.
Other taxes
Withholding on salary (Article 21), VAT and social security apply separately.
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Standard rules and foreign-source income
Standard rules
Tax residency and worldwide income scope for individuals
Worldwide income
Details
- On: Worldwide income for domestic tax subjects
- Who: Domestic tax subject: residing in Indonesia
Foreigners present in Indonesia more than 183 days in 12 months, or present in a tax year with intent to reside, are domestic tax subjects taxed on worldwide income. 1 2
Taxed on
Worldwide income for domestic tax subjects; Indonesian-source income for foreign tax subjects.
Who it applies to
- Domestic tax subject: residing in Indonesia, or present more than 183 days within any 12 months, or present in a tax year with intent to reside.
- Intent to reside can be shown by KITAP, a limited stay permit over 183 days, an employment contract over 183 days or a rental contract.
Exclusions
- Non-residents are taxed on Indonesian-source income only, subject to treaties.
- Qualifying skilled foreigners may elect the four-year territorial basis (see “Four-year territorial basis for skilled foreigners who become Indonesian tax residents”).
Days in the country
- More than 183 days in rolling 12 months · Presence of more than 183 days (not necessarily consecutive) makes a foreigner a domestic tax subject; residence or intent to reside also qualifies
Tax residence
Immigration stay authorization and tax-subject status are separate; presence days are counted in total, not consecutively.
Visas
A limited stay permit valid more than 183 days is evidence of intent to reside; Second Home visa holders are domestic tax subjects.
Other taxes
Payroll withholding, VAT and social security apply separately.
Checked against official sources on Change log
Standard rules
Indonesia individual income tax rates (Law 7/2021 harmonisation)
Progressive rates
Details
- Who: Domestic tax subjects are taxed on worldwide income
- Limit: IDR 60M/yr ≈ $3,350
Resident individuals pay progressive income tax of 5% to 35%: 5% up to IDR 60 million (≈ $3,350), 15% to IDR 250 million (≈ $13,900), 25% to IDR 500 million (≈ $27,900), 30% to IDR 5 billion (≈ $279,000) and 35% above. 6 1
Taxed on
Taxable income of resident individuals after deductions and the non-taxable income allowance (PTKP): IDR 54 million (≈ $3,010) a year for the taxpayer, plus IDR 4.5 million (≈ $250) if married and IDR 4.5 million (≈ $250) for each dependant, up to three.
Who it applies to
- Domestic tax subjects are taxed on worldwide income, subject to the four-year territorial regime for foreigners with certain expertise.
Exclusions
- Foreign tax subjects (non-residents) do not use this scale: their Indonesian-source income is taxed at 20% of the gross amount under Article 26, subject to tax treaties.
Limits
- IDR 60,000,000 a year (≈ $3,350) · 5% on taxable income up to IDR 60,000,000 (≈ $3,350)
- IDR 250,000,000 a year (≈ $13,900) · 15% from IDR 60,000,000 (≈ $3,350) to 250,000,000
- IDR 500,000,000 a year (≈ $27,900) · 25% from IDR 250,000,000 (≈ $13,900) to 500,000,000
- IDR 5,000,000,000 a year (≈ $279,000) · 30% from IDR 500,000,000 (≈ $27,900) to 5,000,000,000; 35% above IDR 5,000,000,000 (≈ $279,000)
Tax residence
Rates apply from tax year 2022.
Visas
Rates are the same for every visa type.
Other taxes
VAT, payroll withholding and social security apply separately.
Checked against official sources on Change log
VAT, social security and other taxes
- Payroll withholding, VAT and social security apply separately.
- Withholding on salary (Article 21), VAT and social security apply separately.
- VAT, payroll withholding and social security apply separately.
Questions people ask
When do you become a tax resident in Indonesia?
More than 183 days in rolling 12 months (Presence of more than 183 days (not necessarily consecutive) makes a foreigner a domestic tax subject; residence or intent to reside also qualifies). Immigration stay authorization and tax-subject status are separate; presence days are counted in total, not consecutively.
Who qualifies for Four-year territorial basis?
Foreign citizen who is a domestic tax subject (resident, or present more than 183 days in 12 months, or present in a tax year intending to reside). Linked to foreign worker status in a designated position or foreign researcher status; tax status depends on residence and permits are separate.
How are Remote worker visa holders taxed in Indonesia?
No special regime in our records is tied to the Remote worker visa. The standard rules apply: Foreigners present in Indonesia more than 183 days in 12 months, or present in a tax year with intent to reside, are domestic tax subjects taxed on worldwide income.
≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.
Sources (6)
Official sources
- Tax return reporting for foreign citizens in Indonesia · Directorate General of Taxes, Indonesia (pajak.go.id) · checked 2026-10-10
- Income Tax Law (Law 7 of 1983 as amended by Law 36 of 2008) · Directorate General of Taxes, Indonesia (pajak.go.id) · checked 2026-10-10
- WNA Hanya Dipajaki atas Penghasilan dari Indonesia, Kok Bisa? (foreigners taxed only on Indonesian income) · Directorate General of Taxes, Indonesia (pajak.go.id) · checked 2026-10-10 · published 2021-09-03
- Pajak untuk Pemegang Second Home Visa (Directorate General of Taxes) · Directorate General of Taxes · checked 2026-10-10 · published 2022
- Golden Visa tax session, KPP Badora (Directorate General of Taxes) · Directorate General of Taxes · checked 2026-10-10
- Lapisan Pajak Penghasilan Kian Progresif (Directorate General of Taxes, 22 Oct 2021) · Directorate General of Taxes · checked 2026-10-10 · published 2021-10-22