Indonesia
Top Income Tax
35%
Marginal rate
Corporate Tax
22%
Standard rate
VAT / Sales Tax
11%
Standard rate
Capital Gains
0.1%
Standard rate
Overview
Indonesia, home to the digital nomad paradise of Bali, offers very low living costs and a growing digital economy. The tax system is being modernized with new brackets and VAT increases. Bali remains one of the world's most popular remote work destinations.
Income Tax Brackets
| Income Range (IDR) | Tax Rate |
|---|---|
| 0 - 60,000,000 | 5% |
| 60,000,000 - 250,000,000 | 15% |
| 250,000,000 - 500,000,000 | 25% |
| 500,000,000 - 5,000,000,000 | 30% |
| 5,000,000,000+ | 35% |
IDR amounts per year. Non-residents taxed at flat 20% on Indonesian-source income.
Corporate Tax
Standard Rate
22%
22% standard. 50% reduction for listed companies meeting certain criteria.
VAT / Sales Tax
Standard Rate
11%
11% standard. Export of goods and services at 0%.
Capital Gains Tax
Standard Rate
0.1%
0.1% final tax on sale of listed shares. 25% on non-listed shares for residents.
Social Security Contributions
Employee
5%
Employer
9.24%
Self-Employed
5%
BPJS Ketenagakerjaan and BPJS Kesehatan. Covers work accident, death, pension, health.
Special Tax Regimes
Second Home Visa
5-10 year stay permit for foreigners. Tax implications depend on residency status.
Eligibility: Must have USD 130,000+ in savings or proof of income.
Digital Nomad Visa
Digital Nomad Visa (B211A) and Second Home Visa. E-Visa for remote workers available in Bali and other locations.
Pros & Cons
Pros
- Very low cost of living
- Bali digital nomad hub
- Low social security contributions
- Growing digital economy
Cons
- Complex bureaucracy
- 35% top income tax
- Limited infrastructure outside cities
- Visa complexity
- Internet reliability varies
Living Indicators
Cost of Living Index
Very affordable
Quality of Life Index
Average
Best For
Data Sources
Tax rate data for Indonesia is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- Indonesia government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.