Indonesia's headline corporate income tax (CIT) rate is 22.
The headline personal income tax (PIT) rate is 35.
The standard VAT/GST (or equivalent consumption tax) rate is 12. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
Under Article 2 of the Income Tax Law (as amended by Law No. 7 of 2021), an individual is an Indonesian tax resident if present in Indonesia for more than 183 days within any 12-month period (cumulative, not necessarily consecutive; arrival and departure days both count), or if they intend to reside in Indonesia. Residents are taxed on worldwide income and must report worldwide assets and liabilities; non-residents are taxed only on Indonesia-source income.
Under Ministry of Finance Regulation No. 93/PMK.03/2019, a non-listed foreign corporation is a Controlled Foreign Company where Indonesian resident taxpayers hold, directly or indirectly, at least 50% of paid-up capital - either individually or collectively (including collective ownership through other CFCs). Certain categories of CFC income - dividends, interest, rents, royalties, and gains from asset sales - are subject to deemed-dividend treatment, attributed to Indonesian shareholders as taxable income within four months of the CFC's tax return filing deadline (or seven months after fiscal year-end where no filing obligation exists), regardless of actual distribution. The ownership threshold is tested as of the end of the Indonesian taxpayer's fiscal year.
Indonesia applies a general maximum debt-to-equity ratio of 4:1 for tax deductibility purposes (Minister of Finance regulation, effective 2016), subject to sector-specific exceptions (notably banking, insurance, and certain infrastructure financing). Interest on debt exceeding this ratio is non-deductible. Separately, interest charged between related parties at rates considered excessive relative to commercial rates may be disallowed under Indonesia's transfer pricing rules, and interest-free related-party loans can trigger deemed-interest withholding exposure.
Indonesia maintains double tax treaties with 71 countries, generally following the UN Model Convention rather than the OECD Model. Treaty benefits require the taxpayer to substantiate residency (typically via a Certificate of Domicile) and satisfy anti-abuse provisions; shell entities used principally to access treaty benefits are denied relief under Indonesia's beneficial-ownership rules. The current authoritative rate schedule is maintained by the Direktorat Jenderal Pajak (Directorate General of Taxes).