Search
utility-emailutility-printutility-pdfContact usChange to standard fontChange to large font

Taxation

The Indonesian taxation system works on a ‘self assessment’ basis, which means taxpayers must lodge their income tax return and calculate the amount of tax payable. This is combined with a wide range of ‘withholding taxes’ imposed on many day-to-day transactions. The various taxes include:

  • Taxation of employees and payments made to individual entities. There are established Indonesian tax scales.
  • Withholding taxes deducted by eligible corporate entities resident in Indonesia. This includes ‘fees for service’ but not for rental income. The amount withheld depends on the category of the service and is then based on the deemed profit of the industry or in the case of rent, a set percentage (15 per cent).
  • Corporate income tax is paid on the lodgement of the annual tax return, which is usually on a calendar year basis. The current rate forresident corporations with taxable income is progressive. Net profit up to Rp50 million (approx. US$4500) is 10 per cent, net profit between Rp50 million and Rp100 million (US$9000) is 15 per cent. Finally for net profit exceeding Rp100 million, 30 per cent tax is applicable.
  • Taxes related to payments made to offshore entities (dividends, royalties, etc). Double tax arrangements (DTA) can provide some relief in this area. However, it is essential that the taxpayer applies to the local tax authorities for such DTA provisions to apply.
  • Value Added Tax rate is generally 10 per cent.

icon Top Business Risks

IP Passport fact sheets

These fact sheets outline foreign Intellectual Property (IP) regimes and some of the issues and challenges which may be faced by Australian exporters.

The current fact sheets are available on the IP Australia website.

APEC Business Travel Card Scheme

Managed by the Department of Immigration, the APEC Business Travel Card Scheme was developed to make travelling within the 21 APEC member countries much simpler and more efficient.

OECD Guidelines for Multinational Enterprises

Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the AusNCP website.

  • International Readiness Indicator

    checklist

    Austrade's International Readiness Indicator is an online tool to help Australian businesses determine whether they are ready for exporting.

    International Readiness Indicator

  • How Austrade can help

    Austrade provides information and advice to assist Australian companies reduce the time, cost and risk of exporting.

    Assistance from Austrade

  • Contact Austrade

Site Information

Austrade makes no warranty, express or implied as to the fitness for a particular purpose, or assumes any legal liability for the accuracy or usefulness of any information contained in this document. Any consequential loss or damage suffered as a result of reliance on this information is the sole responsibility of the user.