UPDATE INCOME TAX LAW 2022

Rp
 Principle
Base
Legal
Taxation Construction
Income
Tax Law Income Tax Law
 Positivisme, in accordance with positive legal norms
Rule Based  Legality, based on legal documentation

 Income that is widely received or earned (Article 4 paragraph (1)

Income Tax Law)
 Costs incurred to acquire, collect and maintain income (Article 6
Realization Principle paragraph (1) Income Tax Law)
 It is also possible to carry out taxation of unrealized gain/loss.

 Expenditures are measured based on the actual selling price

issued except for affiliated transactions (Article 10 paragraph (1)
Income Tax Law)
Historical Cost  Expenses are also measured based on the value of
payments/expenses (Article 6 paragraph (1) Income Tax Law)
 Charges through allocation: depreciation and amortization (Article
11 and Article 11A Income Tax Law)

 Mechanism of calculating net income with deducting gross income

Matching Cost (Article 4 paragraph (1) Income Tax Law) with Fees (Articles 6, 9,
11, 11A Income Tax Law).
Against Revenue  Mechanism of counting through special norms or regimes
 TAX SUBJECT
Article 2 paragraph (1), paragraph (1a)

1. Individual
2. Inheritance that has not been divided as a unit replaces the
rightful one

Which
Corporate
becomes Tax
subject:
Permanent Establishment

The permanent establishment is a tax subject whose tax treatment is the same as that of a corporate tax subject.
Permanent form of business is a form of business that is used by an individual to run a business or carry out business activities
in Indonesia which can be in the form of: the domicile of management; branch company; representative office; building
office; factory; workshop; warehouse; space for promotion and sales; mining and extracting natural resources; region
oil and gas mining work; fishery, animal husbandry, agriculture, plantation, or forestry; project
construction, installation, or assembly projects; the provision of services in any form by employees or other persons as long as
carried out more than 60 (sixty) days within a period of 12 (twelve) months; person or entity acting as
agent whose position is not independent; agent or employee of an insurance company that is not established and is not
located domicile in Indonesia that receives insurance premiums or bears risks in Indonesia; and computers, agents
electronic, or automated equipment that is owned, rented, or used by the provider of electronic transactions for
carry out business activities via the internet.
 JOB CREATION LAW

Domestic Individual Tax ARTICLE

Subject 111
Including domestic tax subjects is an
individual, whether that is a citizen
Indonesia or citizen Foreigner who:

1. Live in Indonesia;
2. being in Indonesia for more than 183 days in a 12-month period;
3. in a tax year are in Indonesia and have the intention to reside in Indonesia
Previous rule

Only mention the criteria of the individual, without mentioning the status
citizenship.
 JOB CREATION LAW

Overseas Individual Tax ARICLE

Subject 111
Including foreign tax subjects::
a. an individual who does not reside in Indonesia;
b. foreign nationals who stay in Indonesia for not more than
183 days in a 12-month period;
c. Indonesian citizens who are outside Indonesia for more
than 183 days in a 12 month period and
meet the requirements:
1. residence;
2. main activity center;
3. place to practice;
4. tax subject status; and/or
5. other specific requirements
which further provisions regarding requirements
This is regulated in the Regulation of the Minister
of Finance.
Note:

Clarify the determination of tax subject status for Indonesian citizens outside Indonesia >
183 day.
 Not Subject to Personal Tax
(Article 3 Income Tax Law)
• diplomatic and consular representatives or other officials from
foreign countries and seconded persons to those who work for and
reside with them on the condition that:
a. not an Indonesian citizen;
b. in Indonesia do not receive or earn income outside the
position or work
c. and the country concerned provides reciprocal treatment

• representatives of international organizations of which Indonesia is a

member and do not carry on business or other activities, provided
that:
a. not an Indonesian citizen;
b. not running a business, activity, or other job to earn income
from Indonesia
 JOB CREATION LAW

Territorial Incom e Principle ARTICLE

111
Foreign citizens who have become domestic
tax subjects are subject to Income Tax only
WNA on income received or earned from

4TAHUN
PERTAMA
Indonesia with the following provisions:
a. have certain skills; and
b. valid for 4 tax years calculated from becoming
a domestic tax subject..

▪ Including income in connection with employment, services, or

activities in Indonesia that are paid for outside Indonesia.
▪ Does not apply to foreigners who take advantage of the
Agreement Double Taxation Avoidance.

Previous rule

Income tax is imposed on income both from Indonesia and abroad

Indonesia.
 Corporate Tax Subject
A group of people and/or capital constituting a good unit
that does/does not conduct business, including:

Limited Liability Company (Ltd.), fellowship,

 Comanditaire Venotschap (CV),  gathering,
 Other companies,  foundation,
 Mass organization,
 State-Owned Enterprises
 socio-political organizations, or
 Regional-Owned Enterprises, other organizations,
 firm,  Institution and other forms
 share, including investment contracts
 cooperative, collective and permanent
 Pension fund, establishment
 Start and End of Liability
Subjective Taxation (Article 2A Income Tax Law)

Subjective Tax
Liability Start End

Individual • When born; • At the time of death; or

• are; or • leave Indonesia forever
• intend,
to reside in Indonesia

Corporate • When founded; or • When disbanded; or

• domiciled in Indonesia • when no longer domiciled
in Indonesia
Individuals or when the individual or corporate when no longer receive or
corporates who are receives or earns income from earn income
not in Indonesia Indonesia

Undivided when the undivided inheritance When the inheritance is done

inheritance arises dividing
INCOME TAX OBJECT
(Article 4 paragraph (1))

INCOME

Additional economic capabilities

Coming from Can be used for

Accepted or consumption or to
obtained by the Indonesia and from
Taxpayer outside Indonesia increase the wealth
of Taxpayer

By name and in any form

INCOME TAX OBJECT
(Article 4 paragraph (1), paragraph (2), paragraph (3)) salary

honor

Other income
INCOME

Excluded from
Tax object
Tax Object

Subject to non- Not combined with

Subject to final
final tax (general income subject to tax
tax
rate/Article 17) at general rates
INCOME TAX OBJECT (Article 4 paragraph (1) Income Tax Law)

 Reimbursement or compensation in respect of work or services

 Prizes from sweepstakes or work or activities, and awards
 Operating Profit, Gain due to sale or transfer of property
 Receipt of tax payments that have been charged as expenses
 Interest includes premiums, discounts, and guaranteed debt repayments
 Dividends, Royalties, Rent from other income in connection with the use of assets
 Receipt or payment of periodic payments
 Gain due to debt relief, Gain on foreign exchange rate difference
 The difference is over revaluation of assets
 Insurance Premiums, Contributions received or obtained by associations or
members
 Additional net assets derived from income that has
not been taxed
 Income from Sharia-Based Business
 Interest rates are based on general statutes and tax
 procedures
 Bank Indonesia Surplus
FINAL INCOME TAX OBJECT (Article 4 paragraph(2) Income Tax Law)

• Interest on deposits, other savings, interest on bonds and government bonds,

interest or discount on short-term securities, and interest on cooperative deposits
• Income in the form of raffle prizes
• Income from stock and other securities transactions
• Transactions on sale of shares and transfer of equity participation in partner
companies venture capital
• Income from property transfer transactions in the form of land and/or buildings
• Construction Service Business
• Real Estate Business
• Land and building rental
• Certain income regulated based on government regulations
NOT THE OBJECT OF INCOME TAX (Article 4 paragraph (3) Income Tax Law)

 Assistance or Donations regulated under government regulations

 Grants received by blood relatives in a straight line of one degree, religious bodies, educational
bodies, social bodies including foundations, cooperatives, or OPs that run micro and small
businesses
 Legacy
 Assets, including cash deposits in lieu of shares or equity participation
 Reimbursement/Reward or in kind/enjoyment *
 Payments received by individuals in connection with insurance due to accident, illness, death, and
scholarship insurance
 Dividend*
 Contributions received/earned by the pension fund
 Income from capital invested by Dapen in certain fields
 Share of profits received/obtained by members of a non-share limited partnership
 Income received/earned Venture Capital
 Scholarship
 The remainder earned or earned for non-profit education or research and development
 Assistance/compensation paid by BPJS
 Deposit funds BPIH, BPIH special, BPKH
 The remaining social/religious institutions are reinvested or placed in an endowment fund.
Nature and/or Enjoyment NOT THE OBJECT OF INCOME TAX (Article 4
paragraph (3) letter d. Income Tax Law)

 food, food ingredients, beverage ingredients, and/or drinks for all employees
 Nature and/or enjoyment provided in certain areas
 Nature and/or enjoyment that must be provided by the employer in carrying out the
work
 Natura and/or enjoyment sourced from APBN, APBD, and APBDes
 Nature and/or enjoyment with certain types and/or limitations
PERMANENT ESTABLISHMENT INCOME TAX OBJECT
(Article 5)

Permanent Establishment Income

Income from
business/activities Income as
Permanent referred to in Head Office Income from
establishment and Article 26 Business or Activities:
from assets
owned/controlled

As long as there is an Service Sale of

effective relationship provision
between the goods
permanent
establishment and
the assets or activities
that provide income what is done in Indonesia
 FISCAL COST
Gross Income Deduction and Non-Deduction (Article 6 and Article 9)

Expenses/Cost

Deductible from Gross Cannot be deducted from

Income (Article 6) Gross Income (Article 9)

Benefit Period <= 1 Year Benefit Period > 1 Year

Charged through Depreciation and

Charged at once
Amortization
 Non-Taxable Income
(Law 36/2008, PMK-101/2016, PMK 252/2008, PER-16/2016)

Description Non-Taxable Income Value

(as of 1 January 2016)

For Individual Taxpayer Self Rp54.000.000

Additional for Marriage Taxpayers Rp4.500.000

Additional for a wife whose Rp54.000.000

income is combined with that of
her husband
Additional for dependents* Rp.4.500.000

*) each family member by blood and by marriage in a straight line as well as adopted
children who are fully dependent at most 3 (three) people for each family
 Taxation of Family Income
(Article 8 of the Income Tax Law)

• All income/losses of married women husband's

income/losses, except for the wife's income, which is obtained
solely from 1 employer and has been deducted with Article 21
Income Tax
• Husband and wife are taxed separately:
 Life apart based on the judge's decision
 Property & income separation agreement
 Desired by a wife who chooses to carry out separate
taxation rights and obligations
• The income of a child who is not yet an adult is
combined with the income of his parents.
• Minors: under 18 years of age and never married.
Income Tax Calculation Concept
Map
 INCOME TAX
ARTICLE 21
Withholding tax on income in
connection with work, services, or
activities received by individual
domestic taxpayers
Withholding Income Tax Forms Article 21

Withholding Income Tax Article 21 is not final

1
• On income in connection with work, services, and
activities (general)
• Based on Minister of Finance Regulation-
252/PMK.03/2008 and Director General of Taxes
Regulation-16/PJ/2016
2 Final withholding of Article 21 Income Tax
• On income in the form of severance pay, benefit money
pension, old age insurance, and old age guarantee
paid at once Government Regulation Number. 68 Year
2009
• For income which is a burden on the APBN/APBD
received by State Officials, Civil Servants, Members of
the Indonesian Armed Forces/Indonesian Police, and
the pension is in the form of income other than income
that is fixed and regular every month Government
Regulation Number. 80 of 2010
Withholding
PMK-252/2008, PER-16/2016

EMPLOYER consisting of:

a. Individual and corporate;
b. branch, representative or unit, in the case of doing art or all
of the administration related to the payment of salaries,
wages, honoraria, allowances, and other payments is the
branch, representative or unit.
Treasurer or Government Cash Holder
(Government Agency)

WITHHOLDING
INCOME TAX Pension Funds, Labor Social Security Administering
ARTICLE 21 Bodies and Other Agencies

INDIVIDUAL who carry out business activities or

independent work as well as CORPORATE who make
payments in connection with the delivery of services

Event Organizer
THE EMPLOYER IS NOT A TAX WITHHOLDING

Representative office International International An individual

Foreign Country Organizations as Organizations whose employer who does
referred to in the Income Tax provisions not carry out business
Regulation of the are based on the activities or
Minister of Finance provisions of independent work
which regulates the international which solely employs
determination of agreements and in an individual to do
International those international household work or
Organizations that are agreements exempt work not in the
not subject to Income from tax withholding context of carrying out
Tax obligations, as well as business activities or
those organizations independent work
that have been
determined by the
Minister of Finance
Income Recipient

ACTIVITY
EMPLOYEE PARTICIPANTS:
NOT FORMER • Contest Participants
EMPLOYEE EMPOLYEE
• Attendees of Meetings,
PERMANENT
PERMANENT TEMPORARY
Conferences, Sessions,
Meetings, Working Visits
RECIPIENTS OF • Participant/Committee
MEMBERS OF THE BOARD Member
severance
OF COMMISSIONERS/
pay, PENSION
SUPERVISORS • Participants Education,
or PENSION Training
who do not double as
BENEFITS
employees • Other Activity
MONEY, ENT,
Participants
JHT, including
the heirs
Income Tax Object Article 21

Permanent employee income, both regular and irregular

Regular income of pension recipients
Severance pay, pension, old-age benefits, or security
old age paid at once
Income of non-permanent employees or casual workers
Rewards for non-employees
Rewards for activity participants

Compensation to the board of commissioners/supervisors who are not permanent

employees of the same company
Rewards for former employees Withdrawal of pension funds by employees
In-kind/enjoyment received from final income tax taxpayers or taxpayers with
special calculation norms
Calculation of Income Tax Article 21

PPh 21 payable = Tax Imposition Base x Income Tax Rate Article 17 paragraph (1)
letter a Income Tax Law

Layers of Rates
Taxable Income
≤ IDR 60 Million 5%
IDR 60 Million< x ≤ IDR 250 Million 15%
IDR 250 Million < x ≤ IDR 500 Million 25%

IDR 500 Million < x ≤ IDR 5 billion 30%

> IDR 5 billion 35%
Calculation of Income Tax Article 21
(PER-16/PJ/2016)

NET INCOME – NON-

PERMANENT
TAXABLE INCOME
GROSS INCOME – NON-
EMPLOYEE MONTHLY
TAXABLE INCOME
GROSS INCOME – 450
TEMPORARY
THOUSAND
GROSSINCOME (>4,5 Million until 10,2
DAILY
Million – NON-TAXABLEINCOME
Harian
GROSSINCOME(>10,2 Million) – NON-
TAXABLEINCOME
((50% X GROSS INCOME) – MONTHLY
SUSTAINABLE NON-TAXABLE INCOME CUMULATIVE
SUSTAINABLE
NOT EMPLOYEE ex Article 13 paragraph (1) (50% X GROSS INCOME) CUMULATIVE

NO SUSTAINABLE
50% X GROSS INCOME

RETIRED PERIODICALLY NET INCOME – NON-

TAXABLE INCOME

COMMISSIONERS,
FORMEREMPLOYEES, GROSS INCOME CUMULATIVE
WITHDRAWALOF
DAPENO/EMPLOYEES

ACTIVITY PARTICIPANTS GROSS INCOME

 Income Tax Article 23
Withholding tax on income in the form of Interest,
Royalties, Prizes, Awards, Bonuses and income
from Rent and Fees for Services
Withholding, Taxpayers Withholding, and When Payable

WITHHOLDING
• Government agencies/Government Agencies
• Domestic corporate tax subject
• Domestic activity organizers
• Permanent Establishment
• Individuals as taxpayers in certain countries

TAXPAYER WITHOUT
• Domestic Taxpayers and Permanent Establishments
receiving income which is the object of Article 23 Income
Tax from Article 23 Income Tax Withholding.

WHEN OBTAINED
• at the time of payment;
• when made available for payment (eg: dividends); and
• When due.
Object and Rates Income Tax Article 23
(Article 23 paragraph (1) Law Number. 36 Year 2008)

15% x gross amount 2% x gross amount

INTEREST DIVIDEND

RENT SERVICE

ROYALTY PRESENT
Object Income Tax Article 23
(Article 23 paragraph (1) Law Number. 36 Year 2008)

• Interest as referred to in Article 4 paragraph (1) letter f of the

Income Tax Law. In terms of interest, it includes premiums,
discounts, and rewards for guaranteeing debt repayments
• Royalties are rewards in connection with the use of rights
• on intangible property, tangible property, or information
• Prizes, Awards, Bonuses and the like other than those that
have been deducted by Article 21 Income Tax
• Rent and other income in connection with the use of
• assets other than those already subject to Income Tax
Article 4 paragraph (2)
• Compensation in connection with technical services,
management services, consulting services, and other
services other than services that have been deducted from
Article 21 Income Tax
 Income Tax Objects Exception Article 23

Income paid or owed to the

bank
dividends as referred to in Article 4
Rent paid or payable in connection paragraph (3) letter f and dividends
with an option lease received by individuals as referred to in
Article 17 paragraph (2c)
share of profits received or accrued
by members of a limited partnership income paid or payable to a business
whose capital is not divided into entity for financial services that
shares, partnerships, associations, function as a distributor of loans
firms, and joint ventures including and/or financing regulated by a
holders of collective contract Regulation of the Minister of Finance.
participation units

the rest of the results of the cooperative

paid by the cooperative to
members
 Income Tax
Article 22

Collection of Income Tax

in connection with
payments for the delivery
of goods and activities in
the import sector or
business activities in other
fields
Income Tax Article 22
(PMK-34/PMK.010/2017 jo. PMK-110/PMK.010/2018)

Collector Collect Object Rates

Import:
a. Imported goods a. 10%  Attachment A PMK-110
b. 7,5%  Attachment B PMK-110
1 Foreign Exchange
Bank & Directorate
b. Exports of coal, metal
minerals, and non-metallic c. 0,5%  Attachment C PMK-110
General of Customs minerals carried out by d. 2,5%  except a,b,c with API
exporters, except by e.7.5%  except a,b,c without
Taxpayers who are bound API tax base : Import value
by PKP2B and KK Eksport:
1.5%  Attachment D PMK-110
Tax base: Export value

2 Government treasurer,
expenditure treasurer,
proxy of Budget
purchase of goods 1,5%* purchase price
(VAT not included)
User/SPM Issuing Officer

Government Agencies(PMK-231/2019)

Purchase of goods and/or 1,5%* purchase price

3 Certain
business
materials for business
purposes
(VAT not included)
entities
a. state-owned enterprises;
b. Business Entities and State-Owned Enterprises as a result of restructuring
carried out by the government;
c. certain business entities that are directly owned by state-owned enterprises
Import of Shipment Goods (PMK-199/PMK.010/2019)

IMPOSITION OF IMPORT DUTIES AND

PDRI

IMPORT DUTIES VAT IMPORT DUTIES 7,5%

10% FREE VAT 10%
 SPECIAL GOODS (OVER
THE THRESHOLD OF
USD 3)

MFN RATE
BAG SHOES
Hs: 4204 Hs:64 VAT
Charged: Charged
10 %
BM 15%- 20% BM 25%-30%

VAT
TEXTILE PRODUCT 7,5% - 10 %
Hs: 61,62,63
Charged:
B:M 15%- 25%

WHY?

Import of shipments for To Avoid shifting

this product is 63% of rate of import via consignment
the total import of Because the single17.5% is
shipments much lower than the MFN rate
of ± 32.5% - 50%
Income Tax Article 22
(PMK-34/PMK.010/2017 in conjunction with PMK-110/PMK.010/2018)

Collector Collect Object Rates

0.3%  steels
Business entities cement
industry, paper industry, steel Sales of produce to domestic 0.45%  vehicle/automotive
4 industry, automotive industry,
and pharmaceutical industry
distributors 0.25%  cement
0.1%  paper
0.3%  pharmaceutical

Tax Base (DPP) : VAT Tax Base

(DPPPPN)
Domestic motor vehicles
5 ATPM, APM, and
general importer
sales
0.45%* VAT Tax Base

motorized vehicle

0.25%  To gas stations

(Pertamina)
Sales of Oil Fuel (BBM), 0.30%  to gas stations non-
6 Manufacturer /importer
Oil Fuel (BBM), Gas Fuel Gas Fuel (BBG), and
lubricant
Pertamina or other than gas
station, sales of gas fuel (BBG)
(BBG), and lubricant
and lubricant
Sales of Oil Fuel (BBM) and Gas
Fuel (BBG) to: Tax Base (DPP): Sales Value
a. Agent (final)
Tax Article 22
(PMK-34/PMK.010/2017; PMK-110/PMK.10/2018)

Collector Collect Object Rates

Purchase of materials from forestry,

plantation, agriculture, animal 0.25%* purchased price
7 Industrial business
entity or Exporter
husbandry, and fishery products
have not gone through the
(excluding VAT)

manufacturing industry process, for

their industrial or export purposes

Purchase of coal mining

8 Business entitiy commodities, metallic minerals,
and non-metallic minerals, from
1.5%* purchased price
(Exclude VAT)
the agency or Personal holder
Mining Business Permit (IUP)

Domestic sales of bullion 0.45%* Selling price of

9 Business entity that
sells gold bullion
gold bullion gold
 Income Tax Article 22
Very Luxurious Goods
Income Tax Collection on Sales of Goods that
are Classified as Very Luxurious Goods
 Income Tax Article 22 Sales of Very Luxurious
Goods
(PMK-253/2008 jo. PMK-92/2019)
Collector Collect Object Rates

a. Private airplanes &

Helicopter
b. cruise ship, yacht, and kind of 5% of the sales price
c. four-wheeled motorized vehicle (Exclude VAT Sales Tax
transporting people < 10 people, on Luxury Goods)
selling price > IDR 2 billion / with
cylinder capacity > 3,000 cc
d. Two- and three-wheeled
1 Corporate Taxpayers
Selling Very Luxurious
Goods
motorized vehicles, with selling
price > IDR 300 million or cylinder
capacity >250 cc
a. house and land, with selling price
> IDR 30 Billion/ building area > 1% of the selling price
400 m2 (Exclude VAT and Tax on
b. apartment, condominiums, and Luxury Goods)
kind of, with selling prices > IDR
30 billion or building area > 150
m2
Income Tax Article 22 Sales of Pulse and SIM
card PMK-6/2021 and PER-18/2021

Collector Collect Object Rates

Sales of Credit and Starter Cards,

Second level except:  0.5% of the value
1 distribution operator a. Purchase max. IDR 2 million billed by the Second
(Corporate Taxpayer) (deposit for credit) or maximum
accumulation IDR 60 million
Level Distribution
(mixed deposit) Operator/ Selling Price
b. Bank Taxpayers
 Non-final
c. Taxpayers who submits PP
Suket 23/18
d. Taxpayers who submits SKB
withholding taxes Income Tax
Article 22
Payable When:
a. Upon receipt of payment, including receipt of deposit
b. If the deposit is also for transactions other than pulse, it is
payable when the deposit is used for pulse payments
Final Income Tax Article
4 Section (2)

Tax on Income with Regulated

Separate Treatment Through
Government Regulation
(Final Income Tax)
 Final Tax Article Objects

 Dividends received by individual  Income on Transfer of Land and

taxpayers Building Rights
 Land and Building Rental Income
 Interest of Deposits, Savings/ Giro,
 Construction Services Business
Bank Indonesia promissory notes Income
 Interest on Bonds and Government  Income from Business Received
or Gained by Taxpayers with
Debt Instruments and Discount on Certain Gross Circulation
State Treasury Bonds
 Interest or Discount on Short-Term
 Cooperative Savings Interest for Securities traded in the Money
Market
Individuals
 Lottery Prize
 Earnings on Stock Exchange
Dividends Received or Earned by Domestic
Individual Taxpayer
1. UU No. 7 of 2021 (UU HPP)
2. PP 19 of 2009
3. PMK-111/2010, PMK-18/2021

Deducted Object Income Tax Tax Withholder Exception

Rates

Dividends received or 10% The party who  Domestics dividends received

earned by domestic payer or other or obtained by domestic
individual taxpayers which party who individual taxpayers as long
appointed as as invested in Indonesia for a
are not dividends from the
payer certain period or time
GMS or interim dividends
 Based on GMS or
interim dividend
 Dividend and Other Income Exemption
Article 4 paragraph (3) letter f of Law Number 7 of 2021 (UU HPP)
PMK-18/PMK.03/2021
 Individual Taxpayers  Dividend in the Exchange
excluded with are excluded as big as
investment terms in dividends invested in the
Indonesia for the territory of Republic
certain time Dividend Dividend Indonesia
 Corporate from from
 Non stock dividends Invest
Domestic Overseas
Taxpayers at least 30% of profit after tax
unconditional or before issuance of SKP
Income After
Income from Tax from
Article 18 (2) of the Income
abroad not Permanent
Tax
through Establishment
Permanent
 Invest in NKRI within a Establishment Overseas
 Requirements: Invest at
certain time least 30% of profit after tax
 Income comes from
active business abroad
 Not income from companies
 Excluded Dividends: based on GMS or division
owned abroad
Interim dividend
 Domestic dividends : not deducted Tax Income, without
SKB
 For domestic dividends received by individual taxpayers
don’t match the investment, must do self deposit 10%
final rate
 Interests on Deposits, Savings/ Giro Service dan
Discounts of Bank Indonesia promissory notes
1. PP 131 of 2000 jo. PP 123 of 2015
2. PMK 212/PMK.03/2018

Deducted Object Tax Rate DHE Deposit Tax Exception

Withholder

Interest on Deposit 10% 1 month • Bank 1. The amount of Deposits

DHE in US Dollar • BI and Savings as well as SBI
7,5% 3 months
which place in country that does not exceed IDR
2,5% 6 months 7.5 million
2. Interest and Discount
0% > 6 months received or obtained by
bank.
Interest on Deposit 7,5% 1 month 3. Interest on Deposits and
DHE in dollars Rupiah savings and SBI discounts
which place in country 5% 3 months received or obtained by
0% 6 months Pension Funds (Using SKB
based on PER-
0% > 6 months 3/PJ/2020)
Interest of Savings 20% Company, 4. Saving Interest at the
Permanent designated bank. The
Establishment government in the context
and Discounts of SBI, and of owning hospital and
Interest on Deposits RSS.
20%/P3B Foreign
Interest/Discount of Bond (more than 12 months)

1. PP 9 of 2021 (Foreign Taxpayers non BUT) and PP 91 of 2021 (Domestic

Taxpayers and BUT)
2. PMK-85/PMK.03/2011 jo. PMK-07/PMK.11/2012

Tax Object Rates Tax Subject Tax Withholder

Interest on Bond 10% Domestic a. Publisher or custodian
(and/or discount), Taxpayers and b. Intermediary trader or
including the BUT buyer (secondary)
based on principle 10%/P3B Foreign c. Self deposit
sharia (for Tax Taxpayers (government issued
Article 26) other than bonds via BI-SSSS)
BUT
Exception Deduction:
a. Taxpayers of pension funds whose establishment
was approved by OJK
b. Taxpayers of bank (deducted general income tax)
 Discount on State Treasury Letters (SPN)

1. PP Number 27 of 2008
2. PMK-63/PMK.03/2008

Deducted Objects Rates Tax Tax Withholder Exception

Base
Discount SPN (State 20% Discount SPN Publisher or 1. Bank in
Term Bonds max time (Domestic SPN securities Indonesia
12 months with Individual company 2. Pension Fund
interest payments Taxpayers and (brokers) 3. Mutual Funds
discount Permanent
Establishment)

20% (Foreign
Taxpayers)
 Earnings on Sales of Shares on the Stock Exchange

1. PP Number 41 of 1994 s.t.d.t.d. PP Number 14 of 1997

2. KMK-282/KMK.04/1997
Additional Deposit
Object
Deducted Rates Tax Base Tax Withholder Income Tax on Shares
Founding father
Transaction 0,1% Amount Organizer stock • No later than 1
Sale Shares in of gross exchange through month after
stock sales traded in stock
Middleman effect
Exchange Exchange.
at the moment
Transaction • When the owner
settlement stock founder’s shares
sale no choose 0,5%,
Share value Addition Amount Issuer and owner will subject to
when IPO 0,5% of gross founder’s stock income tax
(Shares sales according to the
founding provisions
father) general.
 Transfer of Rights to Land and/or Buildings

1. PP Number 34 of 2016
2. PMK-261/PMK.03/2016
Income Tax Rate Tax Base Tax Withholder
Object
Transfer of 0% To the government, a. Value based on Office • Personal
rights above BUMN/BUMD Decision. Deposit before
assignment for b. Value of auction minutes the deed
General Decision (UU 2 c. Should Value signed.
of 2012) (special relationship) • SSP must
d. Actually value (not a validated by KPP
Commitment 1% RS and RSS redirect special relationship) via e-PHTB
of Sale and by WP developer e. The value that should
Purchase be based on the
2,5% Other than above
Agreement of market price
Land and/or (exchange, grant, etc.)
Building and
it’s
amendment
(PPJB)
Online Validation via www.pajak.go.id/ ePHTB (PER-21/PJ/2019):
a. Using single rate
b. Payment by SSP/NTPN
c. Payment max. 10 SSP/NTPN
 Land and/or Building Rental
1. PP Number 34 of 2017
2. KMK-394/KMK.04/1996 jo. KMK-120/KMK.03/2002
Income tax Object Rate Tax Base Deduction When Payable

Rent Land and/or 10% All the amount Deducted Time of payment or
Building paid/recognize as debt by owed rent, depends
the Lessee by name and in which event is more
any form, which relate to happened before
land and/or Buildings that
rent cost included
maintenance, cost
maintenance, cost security,
services fees, and other
facility fees, whether the
agreement is made
separately as well as
combined
Income that Personal Deposit (if
received right the opponent
holder on the land transaction is not
of Related investors tax withholding)
agreement Build
Operate Transfer
(BOT)
Construction Service Business

1. PP Number 51 of2008 s.t.d.t.d PP Number 40 of2009

2. PMK-187/PMK.03/2008 s.t.d.t.d. PMK-153/PMK.03/2009
Service Form Business Qualification Rate Deduction When Payable

Contractor Have qualifications 2% • Deducted Tax Income it’s

in small business (If the opponent owed on
Contractor Have Qualifications 3% transaction) moment
Medium or Big payment
Enterprise •Personal deposit (If
the opponent
Contractor Do not have 4% transaction not
qualification withholding tax)
Planner/Construc Have Qualification 4%
tion Supervision • If there any
difference in the
value of the contract
Planner/Construc Do not have 6%
with Tax Income,
tion Supervision qualification
then the drawbacks
paid by personal.

Business qualification and types of construction are in

accordance with PER- LPJK Number 3/2017 and PER-LPJK
Number 4/2017
Lottery Prized

1. PP Number 123 of 2000

2. PER-11/PJ/2015

Deducted Object Rates Tax Base Tax Withholder

Lottery Prized with any name 25% Gross Amount Lottery Organizer
and in any form Lottery Prized
Cooperative Savings Interest for Individuals

1. PP Number 15 of 2009
2. PMK-112/PMK.03/2010

Deducted Object Rates Tax Base Tax Withholder

Interest on savings paid 0% (interest savings Gross Value Cooperative who paid the
by cooperatives to ‘till IDR 240.000) of interest interest saving, when
individual cooperative savings payment
members 10% (interest savings
> IDR 240.000)
Final Income Tax Article 15

Tax on Income of Domestic Shipping Companies,

Overseas Shipping/Airline Companies, and
Domestic Airline Company
 Domestic Shipping Company Income Tax
KMK-416/KMK.04/1996 and SE-29/PJ.4/1996
 Tax Object: Income received/earned by domestic shipping taxpayers (SIUPAL) from
 transportation of people and/or goods, including ship charter income from:
 ports in Indonesia to other ports in Indonesia;
 ports in Indonesia to ports outside Indonesia;
 ports outside Indonesia to ports in Indonesia; and
 ports outside Indonesia to other ports outside Indonesia.
 Norms of Specifics Calculation of Net Income : 4% of Gross Income.
 Taxes Payable : 1,2% of Gross Income and is final.
 Payment Method:
 income from charter with tax witholder, then the paying party is obliged to deduct
the income tax payable at the time of payment or the payable of the compensation.
 Income other than above, then domestic shipping taxpayers are required to pay
their own income tax payable.
 Income Tax of Overseas Shipping/Airline Companies
KMK-417/KMK.04/1996 dan SE-32/PJ.4/1996

 Overseas Shipping/Flight Taxpayer is a Taxpayer domiciled abroad who conducts

business through Permanent Esablishment in Indonesia.
 Tax Object: All replacement/reward value in the form of money from the
transportation of people and/or goods loaded from a port to other port in Indonesia
and/or from ports in Indonesia to ports abroad.
 Norms for Special Calculation of Net Income: 6% of gross turnover.
 Taxes Payable: 2.64% of gross turnover and is final.
 Payment Method:
 income from charter, then the paying party is obliged to deduct the income tax
payable at the time of payment or the compensation or replacement value is due
 income other than above, then the Taxpayer of the shipping company and/or
overseas flight is obliged to pay the income tax payable by himself
 Domestic Airline Company Income Tax
KMK-475/KMK.04/1996 dan SE-35/PJ.4/1996

 Domestic Aviation Taxpayer: Taxpayer of an airline company domiciled in Indonesia

who earns income based on: agreement charter.
 Tax Object: All replacement value/reward in the form of money received/obtained
by WP based on agreement charter from the transportation of people and/or
goods loaded from from one port to another in Indonesia and/or from a port in
Indonesia to a port abroad.
 Norms of Specific Calculation of Net Income: 6% of gross turnover..
 Taxes Payable: 1.8% from gross circulation and is not final (payment of Income Tax
Article 23)
 Payment Method: cutting by penchart is a withholding tax
 HOW TO CALCULATE TAX
Article 16
TAX
How to Calculate Taxable Income

DOMESTIC CERTAIN FOREIGN

TAXPAYER TAXPAYER TAXPAYER

Special Norm FOREIGN TAXPAYER

Usual Way THROUGH
Counting PERMANENT
(Article 15) ESTABLISHMENT

Norm OTHER
FOREIGN
Counting
TAXPAYER
 HOW TO CALCULATE TAX
Taxable income

Taxable Income of Domestic Corporate Taxpayers

(Article 16 paragraph (1))

Cost
Income Article 6 and Net Income
Article 4
paragraph (1)
Article 9 paragraph
(1) d, e, f

Loss
Net Income Compensation Taxable
Article 6 Income
paragraph (2)
HOW TO CALCULATE TAX
Taxable Income

Taxable Income of Permanent establishment

(Article 16 paragraph (3))

Cost
Income Article 5
Article 5 paragraph (2) and (3), Net Income
paragraph (1), Article 6, and article 9
Article 4
paragraph (1) d, e, f
paragraph (1)

Loss
Net Income Compensation Taxable
Article 6 Income
paragraph
(2)
HOW TO CALCULATE TAX
Tax Rate

% Tax Rate

Special/Separate
General Rate Rate
(Final)

Article 5 (2) UU 2/2020

Article 17
• Reduced of Income Tax Rate by 3% for
Individual Taxpayer = (5%, Domestic Taxpayers in the form a
15%, 25%, Article 4 (2) Public Company (shares trade on the
30% (Progresif) Article 15 stock exchange in Indonesia)
Corporate Taxpayer= 22% /
20%

Article 31E Facility:

• Reduction by 50% in income tax
rates for corporate taxpayers
Tax Payable with a gross turnover of up to 50
billion
HOW TO CALCULATE TAX

Income Tax
Article
Payable

Less in credit
tax
(Income Tax Article
21, 22, 23, 24, 25,
26(5))

Tax Article 28A Income Tax Article

29
Overpayment Tax
Underpayment
Article Tax Article
 25
ANGSURAN TAHUN BERJALAN
Current Year Installment
Income Tax Article
Income Tax Payable According to
Annual Income Tax Return of the Previous Tax Year

REDUCED Income Tax Article 25 for

the month
Income Tax Income Tax Article before the Income Tax
Article Payable or paid Report
Deducted or in ln delivered before limit
Collected: What can
Income Tax Report
Credited
Income Tax Article 22
submission time.
(Income Tax Article 24)
Income Tax Article 23
Annual Income Tax =
Devided by
Income Tax Article 25 last
12 Or The Number Of month of the year
Months In Part Of The Tax past tax
Year (December)
 Article 25 paragraph (6) and (7) of the Income Tax Law

Article 25 paragraph (6) of the Income Tax Article 25 paragraphs (7) of The Income Tax

Director General Tax authorized for set

counting big installments in the event that the Minister Finance set calculation of the
Taxpayer: amount of installments for:
a. Entitled to compensation for losses; a. New Taxpayer
b. Earn irregular income b. Bank, BUMN, BUMD, Taxpayers
c. Annual Tax Report submitted after the listed on the stock exchange, and
deadline other taxpayers based on the
d. Given an extension of the time for provisions of the legislation must
submitting the Annual Tax Report make periodic financial reports;
e. Corrected the Annual Tax Report which
c. Taxpayer OPPT
resulted in larger installments
f. There is a change in business conditions
PMK 215/PMK.03/2018
KEP-537/PJH/2000
 Facility in Tax Article 31E

Article 31E paragraph (1) of Undang-Undang

Number 7 of 1983 As has been amended several
1 times by Undang-Undang Number 7 of 2021

SE-02/PJ/concerning Affirmation of the Implementation

of Article 31E Paragraph (1) of Undang-Undang Number 7
of 1983 As has been amended several times by Undang-
2 Undang Number 36 of2008
 Income Tax Article 31E Section (1)

Domestic corporate taxpayers with a gross turnover of up to

Rp50,000,000,000.00 (fifty billion rupiahs) shall receive a facility in the
form of a reduced rate of 50% (fifty percent) of the tariff as referred to in
Article 17 paragraph (1) letter b and paragraph (2a) imposed on Taxable
Income from the gross turnover of up to Rp4,800,000,000.00 (four billion
eight hundred million rupiah).
 Affirmation of the Implementation of Article 31E paragraph (1)
of the Income Tax Law

All earnings:
• business activities and
The calculation sheet Repeal outside business activities
for the Ps 31E Self • after deducting sales
SE-66/PJ/2010 returns and deductions as
paragraph (1) facility Assessment
can be attached to the well as cash discounts in the
Annual Corporate relevant Fiscal Year,
Income Tax Return • before deducting the costs
Domestic Tax of obtaining, collecting and
Subject, maintaining income (from
Except Indonesia and outside
SE-02/PJ/2015 Permanent
Establishment
Indonesia), includes:
(9 Jan 2015)
Instalment Tax 1) Income deducted by Final
Article 25 = Tax Income;
Gross
Rates Tax Article 31E 2) Income deducted by Non-
circulation final Tax Income; and
(1) limit IDR
For the 3) Income that is
calculation of 50M excluded from the tax
income tax Not a object.
payable on choice
non-final
taxable
income
THANK YOU

www.lmatsconsulting.com