Tax information

Tax rates on corporate income

• Normal rate is 22% (applicable since Fiscal Year 2020 onwards)

• 50% of the normal rate is applicable for company that have annual gross turn over at the maximum of IDR 50 billion provided other criteria is met; or

• 3% reduced of normal tax rate is applicable for public listed company meeting certain criteria.

• Final tax at 0.5% of gross turnover of not more than IDR 4.8 billion in one (1) fiscal year.

Other taxes

Value Added Tax (VAT)

VAT applies to the delivery of goods and/ or services in the Indonesian Customs Area, importation of goods, and utilization in the Indonesian Customs Area of intangible goods and/or services originating from offshore. Rate of VAT is:

• 11% on April 2022 onwards;

• At the latest on 1st January 2025 become 12%.

Sales tax on luxury goods (STLG)

The rate of 10% can be reduced or increased to 5% or 15%. VAT at a rate of 0% applies to the exportation of tangible goods, intangible goods and services. STLG is imposed on:

• the transfer of goods categorized as luxuries within the Indonesian customs area by a firm which produces the goods as part of its core or usual business activity.

• the importation of goods categorized as luxuries. STLG is only imposed once, at the time of the transfer of goods categorized as luxuries by the firm producing the goods, or at the time of import. The applicable STLG rate ranges from 10% to 200%, depending on the type of goods transferred or imported.

Motor vehicle taxes

Motor vehicle tax is levied annually in Indonesia on owners of motor vehicles. Motor vehicle tax is imposed on the basis of a vehicle’s weight relative to the degree of road damage the vehicle may potentially cause and/ or environmental contamination caused by the vehicle, and the market value of the vehicle, as determined by the government. The applicable motor vehicle tax rates depend on the number of vehicles owned: 1% to 2% for the first owned motor vehicle, and 2% to 10%, applied progressively, for the second and subsequently owned motor vehicles.

Stamp duty

Starting 1 January 2021, the applicable stamp duty rate is IDR 10,000. Stamp duty is payable on all documents bearing a sum of money in amounts higher than IDR 5.000,000 (IDR 5 million)

Land and building tax (LBT)

The applicable tax rate is 0.3% of the sale value of the land and/ or buildings. The sale value is determined every three years by the regional/district government, except for certain land and/or buildings of which the value can be determined on an annual basis by the regional/district government. In certain cases, for land and/or buildings used for plantations, forestry and mining activities, the applicable rate is 0.5% of the sale value of the land and/or buildings. In this case, the sale value is either 20% or 40% of the assessed property value, for sale values up to IDR 1 billion and above IDR 1 billion, respectively. The assessed property value is determined by the Directorate General of Taxes (DGT). Land and/or buildings are exempted from LBT in the following circumstances:

• when used by the central or a regional government.

• when used merely for public services in relation to religious affairs, social affairs, health, education and national culture, and not for profit-oriented purposes.

• when used for a cemetery, ancient heritage site or similar purpose.

• when used as a protected reserve or recreational forest, national park, grazing land controlled by a village and state land not yet charged with any right.

• when used by a diplomatic representation under a reciprocal arrangement, or

• when used by a representation of an international organization as determined by the Ministry of Finance.

Tax on land and building right transfers (TLBRT)

Payable on the transfer of land and/or buildings. The transferor is the party obliged to settle the TLBRT due. The applicable rate of TLBRT is 2.5% of the gross transfer value. The gross transfer value is the higher of the actual transaction value and the assessed property value as determined by the regional/district government (except for land used for plantations, forestry and mining where the assessed value is determined by the DGT). The applicable TLBRT for a transfer of an ordinary house/apartment/flat made by a real estate company is 1% of the gross transfer value. TLBRT serves as a final tax.

Duty on acquisition of land and building rights (DALBR)

Payable on the acquisition of land and building rights at the rate of 5% of the gross transfer value. The gross transfer value is the higher of the actual transaction value and the assessed property value as determined by the regional/district government (except for land used for plantations, forestry and mining where the assessed value is determined by the DGT). The transferee is the party obliged to settle the DALBR due. DALBR is payable on the following qualified land and/or building transfers:

• sale/purchase and trade-in transactions.

• grants.

• inheritances.

• contributions to a corporation.

• right separation.

• the buyer designation in an auction.

• execution of a court decision with full legal force.

• business mergers, consolidations and expansions.

• prize deliveries.

Tax on sales of high luxury goods

An income tax of 5% is imposed on the sale of high luxury goods, which includes the following types of goods:

• private aeroplanes and private helicopters.

• yachts and other similar vessels.

• vehicles with four (4) wheels (e.g. sedan jeeps, sport utility vehicles (SUVs), multi-purpose vehicles (MPVs), minibuses and other similar vehicles) with a capacity to carry less than 10 passengers, valued at more than IDR 2,000,000,000 or with a cylinder capacity of more than 3,000 cc.

• vehicle with Three and Two wheels valued at more IDR 300,000,000 or with a cylinder capacity of more than 250 cc. An income tax of 1% is imposed on the sale of high luxury goods, which includes the following types of goods:

• houses, including land, valued at more than IDR 30,000,000,000 and with an area of more than 400m2.

• apartments, condominiums and other similar dwellings valued at more than IDR 30,000,000,000 and/or with an area of more than 150m2. The applicable tax on the sale of high luxury goods is collected by the seller, provided the seller is a corporate tax resident. Collected tax serves as a tax credit for the buyer.