A large part of individual income tax is collected through withholding by employers who are then obligated to pay this on to the Indonesian government.
Employers withhold income tax on a monthly basis from salaries and other compensation paid to the employees. In case the employee is a resident taxpayer in Indonesia, the layered rates which would apply start from 5% to 30%. If the individual is a non-resident taxpayer, the withholding tax is 20 percent of the gross amount (in case of a tax treaty the amount may vary).
CCI is up to date with the recent changes in Indonesian Tax regulations. Book a consultation with our team to learn how the Indonesian Tax laws may affect your personal income tax obligations while resident in Indonesia.
