Indonesia taxes its residents on their worldwide income, at rates from 5% to 35%. There's one big exception for newcomers. A foreign national with certain skills who becomes resident can be taxed only on Indonesian income for their first four tax years.
This guide covers Indonesian personal tax for people moving to or living in Indonesia in the 2026 tax year, which is the calendar year.
The key question is simple. Are you an approved foreign expert, or everyone else? Most people who move to Bali or Jakarta, including remote workers and retirees, are in the second group.
What's changed: new residence rules from the Directorate General of Taxes took effect on 9 December 2025 (PER-23/PJ/2025). They list the documents that show you intend to live in Indonesia, including a stay permit valid for more than 183 days. Since 22 April 2026, individuals can use the 0.5% final tax on small business turnover with no time limit, but professionals working on their own account are still excluded. Since 1 August 2025, crypto sales through supervised exchanges carry a 0.21% final tax. Annual returns are now filed through the Coretax system.
📋 Indonesia tax at a glance for 2026
Topic | Details |
|---|---|
Tax system | Worldwide income for residents. Approved foreign experts can be taxed on Indonesian income only for their first 4 tax years |
Top income tax rate | 35% above Rp5 billion. The basic tax-free allowance (PTKP) is Rp54 million a year for a single person |
All-in on a US$100k salary | About 27% (Rp1.79 billion, single, including the 2% old-age savings contribution) |
Foreign income | Taxed for residents, with a credit for foreign tax. Not taxed for approved experts during their 4 years |
Dividends, interest, capital gains | Indonesian dividends 10% final, or 0% if reinvested in Indonesia. Bank interest 20% final. Shares sold on the stock exchange: 0.1% of the sale value. Foreign investment income: normal rates |
Crypto gains | 0.21% final tax on the sale value through supervised local exchanges, 1% through foreign platforms |
Residence at a glance | Getting in: easy (more than 183 days in any 12 months, living in Indonesia, or intending to live there). Leaving: a clean break once you no longer live there and spend no more than 183 days in 12 months |
Double tax treaties | More than 60 in force |
Figures in rupiah are converted at Rp17,900 to US$1. Bank Indonesia's JISDOR rate was Rp17,880 on 7 October 2026.
👉 Bank Indonesia: JISDOR US dollar reference rate
The four-year rule for foreign experts
Does Indonesia tax foreign income? For residents, yes, unless you qualify for a rule added by the Job Creation Law in 2020.
Image 1 — approved experts are taxed on Indonesian income only for four years
The rule comes from the Income Tax Law. Its conditions were set out in Minister of Finance Regulation 18/PMK.03/2021, and since 2025 the procedure has been in the Coretax regulation, PMK 81/2024, which replaced articles 7 to 13 of the 2021 regulation. You can use it if you're a foreign national who has become an Indonesian tax resident and you have certain expertise. It lasts for four tax years, counted from when you first became resident.
Certain expertise has a narrow meaning. You must be one of these:
A foreign worker in a listed position. The positions are on an official list attached to the regulations, and your employer must meet the manpower rules for them.
A foreign researcher designated under the research rules.
On top of that, you need expertise in science, technology or mathematics, shown by a certificate, a diploma or at least five years of work experience. You must also have a duty to transfer your knowledge to Indonesians.
Three details matter in practice:
You have to apply. You send an application to the Directorate General of Taxes, which approves or rejects it.
It's this rule or a treaty. You can't use the four-year rule and also claim treaty relief on your foreign income. You choose one.
The clock doesn't stop. The four years are counted from when you first became resident, so leaving Indonesia for a while doesn't extend them.
Pay for work you do in Indonesia counts as Indonesian income, even if it's paid abroad. So the rule protects your foreign income, not your local salary. Remote workers, retirees and investors don't qualify.
When you become tax resident in Indonesia
You're an Indonesian tax resident if you meet any one of three tests:
More than 183 days. You're in Indonesia for more than 183 days in any 12-month period. The days don't have to be in a row, and part of a day counts as a full day.
You live in Indonesia. You have a home there that you can use at any time and that isn't just a stopover, your main centre of personal or financial life is there, or your daily routine is there.
You intend to live there. You're in Indonesia during the tax year and intend to stay.
The third test catches people early. Documents that show intention include a permanent stay permit (KITAP), a limited stay permit (ITAS) or visa valid for more than 183 days, a work contract or a lease for more than 183 days, or evidence that your family has moved with you. So a one-year stay permit can make you resident from the start, before you've spent 183 days in the country.
If you're resident in Indonesia and in a treaty country at the same time, the treaty decides where you're resident.
How you stop being resident
A foreign national stops being resident when they no longer live in Indonesia and spend no more than 183 days there in a 12-month period. The 12 months can run across two calendar years, so plan your last stay with the rolling count in mind.
Indonesia has no exit tax for individuals. Non-residents are taxed only on Indonesian income, usually through a 20% withholding tax that a treaty can reduce.
👉 Directorate General of Taxes: PER-23/PJ/2025 on resident and non-resident status (in Indonesian)
👉 Directorate General of Taxes: tax returns for foreign citizens in Indonesia
Income tax rates for 2026
Residents pay tax on taxable income after deductions and the tax-free allowance. The bands below have applied since the Tax Harmonisation Law (Law 7/2021) and are unchanged for 2026.
Indonesia income tax rates for residents, 2026
Taxable income | Rate |
|---|---|
Up to Rp60 million | 5% |
Rp60 million to Rp250 million | 15% |
Rp250 million to Rp500 million | 25% |
Rp500 million to Rp5 billion | 30% |
Over Rp5 billion | 35% |
Source: Income Tax Law article 17, as amended by Law 7/2021 on the Harmonisation of Tax Regulations.
The tax-free allowance (PTKP) is Rp54 million a year for you, plus Rp4.5 million if you're married and Rp4.5 million for each dependant, up to three. Employees can also deduct an occupational expense of 5% of gross pay, capped at Rp6 million a year, and their own pension and old-age savings contributions.
Worked example
You're single, tax resident and earn Rp1.79 billion (about US$100k) from an Indonesian employer in 2026.
You deduct the Rp6 million occupational expense, Rp35.8 million of old-age savings (JHT) contributions and the Rp54 million allowance. Your taxable income is Rp1,694,200,000.
Your income tax is Rp452,260,000: 5% on the first Rp60 million, 15% and 25% on the next two bands, and 30% on the rest.
Your all-in bill, with the JHT contribution, is about Rp488 million, or 27% of your salary. Small pension and health contributions add a little more.
Freelancing in Indonesia
Self-employed profits are taxed on the same scale. On a profit of Rp1.79 billion with only the single allowance, the tax is Rp464.8 million, or about 26%.
Indonesia also has a final tax of 0.5% of turnover for individuals whose business turnover is no more than Rp4.8 billion a year. Since 22 April 2026, individuals can use it with no time limit. It doesn't help most freelancers, though, because income from independent professional services is excluded. The list includes consultants, lawyers, accountants, architects, writers, translators, researchers, trainers, artists and online content creators.
The 0.5% rate suits people who sell goods or run a business with staff.
👉 Directorate General of Taxes: Government Regulation 20/2026 on the 0.5% final tax (in Indonesian)
Crypto, investments and pensions
How is crypto taxed in Indonesia? Since 1 August 2025, a final income tax is charged on each sale:
Through an exchange supervised in Indonesia: 0.21% of the sale value, collected by the exchange.
Through a foreign platform, or where nobody collects it: 1% of the sale value, collected by the platform if it has been appointed to collect the tax, otherwise paid and reported by you.
Because it's final, there's no further income tax on the gain. Swaps are taxed on the value of the assets exchanged.
Investment income from Indonesia is mostly taxed at final rates:
Dividends from Indonesian companies: 10% final, or exempt if you invest them in Indonesia by the end of the third month after the tax year and keep them there for at least three tax years.
Bank deposit interest: 20% final. Bond interest is 10% final.
Shares sold on the Indonesia Stock Exchange: 0.1% of the sale value, even if you make a loss.
Foreign dividends can also be exempt if you invest them in Indonesia. Other foreign investment income, foreign gains and foreign pensions are added to your income and taxed at the normal rates, with a credit for foreign tax. A treaty can give the paying country the only right to tax some pensions, such as government service pensions, so check the treaty.
Indonesia has no inheritance tax and no wealth tax. An inheritance isn't treated as income for the person who receives it.
👉 Directorate General of Taxes: Regulation 50/2025 on crypto asset trading (in Indonesian)
👉 Directorate General of Taxes: how deposits, bonds, dividends and shares are taxed (in Indonesian)
Social security
Foreign nationals who work in Indonesia for at least six months must join the national social security schemes run by BPJS Ketenagakerjaan (employment) and BPJS Kesehatan (health).
Old-age savings (JHT): 2% from you and 3.7% from your employer, on your full salary.
Pension (JP): 1% from you and 2% from your employer, on salary up to a monthly cap (Rp10,547,400 on the BPJS Ketenagakerjaan page). Check with your employer whether it applies to foreign workers.
Work accident and death cover: paid by your employer.
Health: a contribution shared with your employer through payroll.
For a well-paid employee, these add only around 2% to the all-in cost.
👉 BPJS Ketenagakerjaan: contribution rates for employees (in Indonesian)
Double tax treaties
Does Indonesia have double tax treaties? Yes. The Directorate General of Taxes lists 63 treaty partners in its table of treaty rates, including the UK, the United States, Australia, Singapore, Malaysia, the Netherlands, Germany, France, Japan, China, India, Canada and the UAE.
Treaties matter more than usual for approved experts, because claiming treaty relief on foreign income means giving up the four-year rule.
👉 Directorate General of Taxes: tax treaty partners and rates
The remote worker visa and the second home visa
Indonesia's digital nomad route is the E33G remote worker visa, a limited stay visa for remote workers employed by a company set up outside Indonesia. The immigration eVisa site asks for income of at least US$60,000 a year (about US$5,000 a month) and bank statements for the last three months showing at least US$2,000, and allows a stay of up to one year. You can't be paid by anyone in Indonesia. It's built around a job with a foreign employer, so it doesn't cover freelancers with their own clients.
The visa comes with no tax exemption. The tax rules treat a stay permit valid for more than 183 days as evidence that you intend to live in Indonesia, so a remote worker who settles in Bali is normally tax resident and taxed on worldwide income, including a salary from a foreign employer. A credit is given for tax already paid abroad.
The second home visa lets you and your family stay for five or ten years. A Directorate General of Taxes article describes the funds test as at least Rp2 billion and says holders are generally treated as tax residents.
👉 Directorate General of Immigration: E33G remote worker visa requirements
👉 Directorate General of Taxes: tax on remote work for a foreign employer (in Indonesian)
👉 Directorate General of Taxes: tax for second home visa holders (in Indonesian)
Who is Indonesia good for?
How does Indonesia compare for different kinds of mover? Ratings are relative to the 150+ countries TaxPilot covers, based on 2026 rules and the all-in cost including compulsory contributions.
☑️ Who is Indonesia good for? Tax ratings for expats in 2026
Expat profile | Indonesia rating | Why |
|---|---|---|
Employees | Moderate | About 27% all-in on a US$100k salary (Rp1.79 billion), single, as a resident: income tax of about 25% plus 2% to the old-age savings scheme (JHT). The four-year rule doesn't help here, because salary for work done in Indonesia is Indonesian income. |
Freelancers (self-employed) | Moderate | About 26% on US$100k of profit on the normal scale. The 0.5% turnover tax for small businesses doesn't cover consultants, writers, translators, content creators and other professionals working on their own account. |
Retirees | Moderate | About 23% on a US$40k foreign pension plus US$20k of foreign investment income, because residents are taxed on worldwide income. There's no inheritance tax and no wealth tax. |
Crypto gains | Good | A final tax of 0.21% of the sale value through an exchange supervised in Indonesia, or 1% through a foreign platform. It's charged on what you sell, not on your gain. |
Investment income | Moderate | About 25% on foreign dividends, interest and gains at the progressive rates. Indonesian investments are far cheaper: 10% final on dividends (0% if reinvested in Indonesia for 3 years) and 0.1% on share sales on the stock exchange. |
Digital nomad visa | Good | The E33G remote worker visa is for people employed by a company outside Indonesia, with income of at least US$60,000 a year. There's no tax exemption attached, and a permit valid for more than 183 days counts as evidence that you intend to live in Indonesia, so you're taxed normally once resident. |
The ratings assume the normal rules. Approved experts do better for four years, because their foreign income isn't taxed.
Filing and deadlines
The tax year is the calendar year. If you're resident and your income is above the tax-free allowance, you need a tax number (NPWP) and must file an annual return (SPT Tahunan).
Deadline: 31 March of the following year, with any balance of tax paid by then. The 2026 return is due by 31 March 2027.
How: online through the Coretax system, which replaced the old e-filing service.
During the year: employers withhold tax from salaries each month. Self-employed people pay monthly instalments.
For 2025 returns, late-filing penalties were waived up to 30 April 2026 during the move to Coretax. Don't count on that again.
Frequently asked questions
Does Indonesia tax foreign income?
Yes, for most residents. Indonesian tax residents are taxed on worldwide income, with a credit for foreign tax. Foreign nationals with certain expertise in approved roles can apply to be taxed only on Indonesian income for their first four tax years.
Who qualifies for the four-year rule in Indonesia?
Foreign workers in officially listed positions and designated foreign researchers, with expertise in science, technology or mathematics shown by a certificate, diploma or five years of experience, and a duty to transfer knowledge. You must apply to the tax office, and you can't also use a tax treaty.
When do you become tax resident in Indonesia?
When you spend more than 183 days in Indonesia in any 12 months, live there, or are there in a tax year intending to stay. A stay permit valid for more than 183 days counts as evidence of intention, so you can be resident from arrival.
What are the income tax rates in Indonesia in 2026?
Residents pay 5% up to Rp60 million of taxable income, 15% up to Rp250 million, 25% up to Rp500 million, 30% up to Rp5 billion and 35% above that. The basic tax-free allowance is Rp54 million a year.
Do remote workers pay tax in Indonesia?
Usually yes. The E33G remote worker visa has no tax exemption. If you become resident, your salary from a foreign employer is taxed in Indonesia at the normal rates, with a credit for tax paid abroad.
How is crypto taxed in Indonesia?
Each sale carries a final income tax of 0.21% of the sale value through an exchange supervised in Indonesia, or 1% through a foreign platform. Because the tax is final, the gain itself isn't taxed again.
Important information
This article is general information and does not constitute tax, legal, immigration or financial advice, and does not create a client relationship. Tax outcomes depend on travel history, income sources, treaty status and the law applying to the relevant year. Rates, thresholds and regimes change, and some measures described may be proposed rather than enacted; this article reflects our understanding as at the date of publication. Obtain advice from a suitably qualified professional before acting or refraining from action.
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