Country topic
Tax in Indonesia
Under the tax directorate's regulation PER-23/PJ/2025 (signed 9 December 2025), a person is a domestic tax subject, in effect a tax resident, if they live in Indonesia, are in Indonesia for more than 183 days within 12 months, or are in Indonesia during a tax year and intend to live there. [T1] The 183 days are counted over 12 months and need not be consecutive, and part of a day counts as a full day. Tax residence is a separate test from the visa. [T1]
What we found
The research, with its sources.
Research information, not advice. Rules change, so check the source before you act on one.
- Under the tax directorate's regulation PER-23/PJ/2025 (signed 9 December 2025), a person is a domestic tax subject, in effect a tax resident, if they live in Indonesia, are in Indonesia for more than 183 days within 12 months, or are in Indonesia during a tax year and intend to live there. [T1]
- The 183 days are counted over 12 months and need not be consecutive, and part of a day counts as a full day. Tax residence is a separate test from the visa. [T1]
- Evidence of intent to live in Indonesia includes a limited stay visa or limited stay permit (ITAS) valid for more than 183 days, a work or business contract of more than 183 days, a home lease of more than 183 days, or documents showing family members moving. [T1]
- The tax directorate's article says a foreign citizen who becomes a domestic tax subject has the same obligations as an Indonesian citizen, with all income earned in Indonesia and worldwide reported and taxed. A foreign tax subject is taxed at 20% of gross Indonesian-source income (Article 26). [T2]
- Its page on individual income tax lists the bands for taxable income after deductions: 5% up to IDR 60 million, 15% above that to IDR 250 million, 25% to IDR 500 million, 30% to IDR 5 billion and 35% above IDR 5 billion. The page's worked example still uses the older IDR 50 million first band. [T3]
- The same page lists the non-taxable income deduction: IDR 54 million for the taxpayer, IDR 4.5 million more if married, and IDR 4.5 million for each dependent family member, up to 3 dependants. [T3]
- A tax directorate article says that, from the 2020 Job Creation Law, a foreigner who is a domestic tax subject and has certain expertise can be taxed only on income received or earned from Indonesia, for four tax years from first becoming a domestic tax subject. It lists designated job posts and foreign researchers, and an application to the tax office is needed. Whether a remote worker qualifies is not stated. [T4]
- The same article says the four-year treatment does not apply if the foreigner chooses to use a double tax treaty with the country where the foreign income arises. [T4]
- The tax directorate's treaty page lists withholding rates under agreements with Australia, Canada, New Zealand and the United States of America. What a treaty does for you depends on your residence and the type of income. [T5]
- Filing for foreign citizens is electronic: a taxpayer number (NPWP) and an EFIN from the tax office, then e-Filing on DJP Online. For the 2024 tax year the article gave a deadline of 31 March 2025; the date for later years was not checked. [T2]
The country
More on Indonesia.
Topics
More about Indonesia.
Questions about Tax in Indonesia.
How many days before I become a tax resident of Indonesia?
You are a domestic tax subject if you are in Indonesia for more than 183 days within 12 months (not necessarily in a row; part of a day counts as a day), if you live there, or if you are there in a tax year and intend to stay. A stay permit valid over 183 days counts as evidence of intent.
What are the income tax rates in Indonesia?
The tax directorate's page lists 5% on taxable income up to IDR 60 million, 15% to IDR 250 million, 25% to IDR 500 million, 30% to IDR 5 billion and 35% above, after deductions. Its worked example still uses the older IDR 50 million first band, so check the current table.
Is foreign income taxed in Indonesia?
For a resident, the tax directorate says income earned in Indonesia and worldwide is reported and taxed. Some foreigners with certain expertise can ask to be taxed only on Indonesian income for four years. A non-resident pays 20% of gross Indonesian-source income. How your pay or pension is treated is unknown here.
Does Indonesia have a tax treaty with my country?
The tax directorate's treaty page lists agreements with Australia, Canada, New Zealand and the United States of America, with withholding rates for dividends, interest and royalties. Choosing a treaty means the four-year territorial treatment is not available. This is not tax advice.
What is the personal allowance, and how do I file?
The page lists IDR 54 million for the taxpayer, IDR 4.5 million more if married and IDR 4.5 million per dependant, up to 3. Foreigners file online with a taxpayer number (NPWP) and an EFIN; the 2024 deadline was 31 March 2025. Check the current year's date.
Sources
Where each figure comes from.
Every figure on this page links to the page we read, with the date we checked it.
- [T1] Peraturan Direktur Jenderal Pajak PER-23/PJ/2025 on determining domestic and foreign tax subjects (in Indonesian; signed 9 December 2025), Directorate General of Taxes (Indonesia). Checked 16 October 2026.
- [T2] Tax Return Reporting for Foreign Citizens in Indonesia, Directorate General of Taxes (Indonesia), article on its website (the author's personal view). Checked 16 October 2026.
- [T3] Mekanisme Penghitungan Pajak Penghasilan Orang Pribadi (in Indonesian), Directorate General of Taxes (Indonesia). Checked 16 October 2026.
- [T4] WNA Hanya Dipajaki atas Penghasilan dari Indonesia, Kok Bisa? (in Indonesian), Directorate General of Taxes (Indonesia), article on its website (the author's personal view). Checked 16 October 2026.
- [T5] Tax Treaty Rates, Directorate General of Taxes (Indonesia). Checked 16 October 2026.