Indonesian Tax

Corporate Income Tax
Fiscal year 2009                 28%
Starting Fiscal year 2010 25%


For small and medium corporation with annual turnover of less than 50 billion Rupiah per annum, profit generated form the first 4,8 billion Rupiah are subject to 50 % of standard tax rate  (ie 12,5 % for fiscal year 2010 onward).


Public listed company with certain criteria are entitled 5% less than standard rate.(ie 20% for fiscal year 2010 onward).


Tax residence
A Permanent Establishment in Indonesia is treated as Indonesia Tax Residence,
Resident taxpayers and Indonesian PEs of foreign companies have to settle their tax liabilities either by direct payments, third party withholdings, or a combination of both.

Foreign companies without a PE in Indonesia have to settle their tax liabilities for their Indonesian-sourced income through withholding of the tax by the Indonesian party paying the income :
a.  Taxable income 20% :
1. Dividends;
2. Interest, including premiums and discounts;
3. Royalties, rents and any income earned from the use of assets;
4. Fees from services, jobs, and activities;
5. Prizes and awards;
6. Pensions and any other periodic payments;
7. Swap premiums and other hedging transactions;
8. Gains from debt write-offs;


b, Estimated net Income,
Insurance premiums paid to non- resident insurance companies:    Net inc. estimate efektif rate
by the insured                                                                                                                   50%                10%
by Indonesian insurance companies                                                                     10%                2%
by Indonesian reinsurance companies                                                                     5%                1%