--- title: "Indonesia tax for new residents 2026: rates and regimes" url: https://settleanywhere.com/countries/indonesia/tax/ lang: en updated: 2026-10-12 --- # Indonesia tax Tax residence: More than 183 days in rolling 12 months. Special regime for new residents: Four-year territorial basis. Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## 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 Foreign-source income: Territorial (4 years) **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. (sources 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. Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## 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. (sources 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 10 Oct 2026 [Change log](https://settleanywhere.com/changes/) 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. (sources 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 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## 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 1. [Tax return reporting for foreign citizens in Indonesia](https://www.pajak.go.id/en/artikel/tax-return-reporting-foreign-citizens-indonesia) · Directorate General of Taxes, Indonesia (pajak.go.id) · checked 2026-10-10 2. [Income Tax Law (Law 7 of 1983 as amended by Law 36 of 2008)](https://pajak.go.id/en/node/35337) · Directorate General of Taxes, Indonesia (pajak.go.id) · checked 2026-10-10 3. [WNA Hanya Dipajaki atas Penghasilan dari Indonesia, Kok Bisa? (foreigners taxed only on Indonesian income)](https://www.pajak.go.id/en/node/70129) · Directorate General of Taxes, Indonesia (pajak.go.id) · checked 2026-10-10 · published 2021-09-03 4. [Pajak untuk Pemegang Second Home Visa (Directorate General of Taxes)](https://www.pajak.go.id/en/node/88379) · Directorate General of Taxes · checked 2026-10-10 · published 2022 5. [Golden Visa tax session, KPP Badora (Directorate General of Taxes)](https://pajak.go.id/en/node/101974) · Directorate General of Taxes · checked 2026-10-10 6. [Lapisan Pajak Penghasilan Kian Progresif (Directorate General of Taxes, 22 Oct 2021)](https://www.pajak.go.id/en/node/72315) · Directorate General of Taxes · checked 2026-10-10 · published 2021-10-22