🇮🇩 Indonesia
A culturally rich archipelago with stunning nature, growing appeal for remote workers, and affordable living in Southeast Asia.
Indonesia Citizenship and Naturalization
Grade:
C-Global Rank: 113
Visa-free Access
74 out of 195 countries
Access to Major Destinations
- European Union
- United Kingdom
- Canada
- United States
- China
- Russia
- Japan
| Category | Details |
|---|---|
Citizenship by Descent |
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Naturalizations |
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Spouse Naturalization |
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Birthright Citizenship |
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Economic Citizenship (Investment) |
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Other Provisions |
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Citizenship by Exception |
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Taxation Overview
Personal Tax Overview: Indonesia 🇮🇩
Key information about personal taxation in Indonesia
Tax Residency
Normal rule: 183 days
Special rule: No information
Special Tax Regime
No information
| From (IDR) | To (IDR) | Tax Rate |
|---|---|---|
| 0 | 60,000,000 | 5% |
| 60,000,001 | 250,000,000 | 15% |
| 250,000,001 | 500,000,000 | 25% |
| 500,000,001 | 5,000,000,000 | 30% |
| 5,000,000,001 | and above | 35% |
Dividend Tax
10%
Dividend income is generally subject to a final withholding tax. However, exemptions are available in certain cases. Domestic corporate shareholders can receive dividends from Indonesian companies without being taxed. Domestic individual shareholders may also be exempt if dividends are reinvested in Indonesia within a specified period. Similarly, foreign dividends may be exempt if reinvested in Indonesia. It’s essential to consult a tax advisor to ensure compliance with these exemptions.
Capital Gains Tax
2.5%
Capital gains from the sale of shares listed on the Indonesian Stock Exchange are exempt from tax if the shares are held for more than a year. However, land and property sales are subject to tax unless exemptions apply for specific transactions, such as sales between related parties or for certain small-value transfers.
Property Rental Income
10%
Rental income from property in Indonesia is subject to taxation. For tax residents, the rental income is taxed at a final rate of 10% of the gross rental income. Non-residents are subject to a final withholding tax of 20%, unless a Double Taxation Agreement (DTA) applies. If a corporate entity owns the property, the rental income is taxed at a rate of 22%. Additionally, Value-Added Tax (VAT) at 11% may apply to rental transactions for registered taxable entrepreneurs.
Property Tax
Yes
Property ownership in Indonesia is subject to several taxes, including the annual Land and Building Tax (PBB), which is up to 0.5% of the market value, and a one-time Property Transfer Tax (BPHTB) of 5% on the higher of the transaction or market value. Capital gains from property sales are taxed at 2.5% of the transaction value, and rental income is taxed with a withholding rate of 20% for non-residents.
Inheritance Tax
No
Indonesia does not impose inheritance, estate, or gift taxes. Inheritance is generally exempt from income tax under Article 4 Paragraph (3) of the Income Tax Law. However, if the inherited assets generate income, such as interest or dividends, that income remains subject to taxation. Additionally, the transfer of land and buildings may incur a 2.5% final income tax on the transfer value.
Wealth Tax
No
VAT
12%
Indonesia's standard VAT rate is 12%, effective from January 1, 2025. Most goods and services are taxed at this rate, while luxury items, like high-end vehicles and residences, are subject to the same VAT under the Luxury Goods Tax framework. Exports remain zero-rated, and some exemptions, like for staple foods and property sales, aim to reduce the impact on lower-income groups.
CFC Laws
No
Indonesia does not have Controlled Foreign Corporation (CFC) rules specifically targeting individuals. However, it does apply CFC rules to certain business entities, generally focusing on corporations that control foreign subsidiaries. The aim is to prevent tax avoidance by shifting income to low or no-tax jurisdictions.
