Can't find your question? Each answer links to a detailed page, and our Indonesia hub lists every calculator.
Frequently Asked Questions
Does Indonesia have income tax?+
Yes. Resident individuals pay progressive income tax (PPh) of 5% to 35% on worldwide income after deductions and PTKP. Employees have it withheld monthly through PPh 21.
What is PPh 21?+
PPh 21 is the income tax withheld from salaries, wages and other payments to individuals for work. Employers withhold it monthly using TER rates and settle the year in December.
How much tax will I pay on a Rp10 million salary?+
A single person (TK/0) on Rp10 million a month with BPJS pays about Rp3.28 million in PPh 21 for the year — roughly 2.6% of gross pay. Use the income tax calculator for your situation.
What is PTKP?+
PTKP is the annual non-taxable income: Rp54 million for a single person, plus Rp4.5 million if married and Rp4.5 million per dependant up to three.
Why does my PPh 21 change every month?+
TER applies one rate to each month's total gross, so bonuses, THR and overtime move the rate. December recalculates the year and corrects the total.
Is THR taxed?+
Yes. THR is taxable income and is added to the month's gross for PPh 21.
What is the VAT rate in Indonesia?+
12% on paper, applied to 11/12 of the price for regular goods and services — an effective 11%. Luxury goods pay the full 12%.
Can my small business pay 0.5% tax?+
Individuals and PT Perorangan with turnover up to Rp4.8 billion can, indefinitely under PP 20/2026, and individuals pay nothing on the first Rp500 million of turnover. CVs, firma and regular PTs cannot. Independent professionals are excluded.
When do I file my annual tax return?+
By 31 March of the following year for individuals, in Coretax. Companies file by 30 April for a calendar financial year.
Is my NIK my NPWP?+
For Indonesian citizens, yes — the 16-digit NIK works as NPWP once validated.
Are dividends taxed in Indonesia?+
Resident individuals pay 10% final unless they reinvest the dividend in Indonesia for three years. Resident companies are exempt. Non-residents pay 20% or a treaty rate.
Do foreigners working in Indonesia pay tax?+
Yes. Tax residents (more than 183 days) pay Pasal 17 rates, with qualifying skilled expatriates taxed only on Indonesian income for their first four years. Non-residents pay 20% on Indonesian income.