Indonesia

Research notes

Indonesia — family-office tax dossier

Last reviewed: 2026-10-15 Tax year: 2026 Reviewer: research agent (Claude), unreviewed by a tax adviser

Summary

Indonesia taxes residents on worldwide income at up to 35%. That rate applies to gains on foreign shares and to foreign dividends, unless the reinvestment-in-Indonesia exemptions apply. Indonesian listed shares bear only a 0.1% tax on sale proceeds, and Indonesian dividends a 10% final tax. Foreign experts can be taxed only on Indonesian income for four years, but that needs qualifying work. There is no inheritance, gift or wealth tax. A golden visa exists for large investors (thresholds not verified).

US citizens: US citizens pay US tax on top; the Indonesia-US treaty (1988) gives credits.

Residence and eligibility

Resident if residing in Indonesia, present more than 183 days in any 12-month period, or present during a fiscal year with intent to reside. Treaty tie-breakers apply.

• Golden Visa (investor) and other KITAS/KITAP permits (EU, US, OTHER): Indonesia introduced a golden visa for investors in 2023 with 5- and 10-year terms and investment thresholds in company investment or government bonds (amounts not verified). Retirement and second-home visas also exist (not researched).

Capital gains

Indonesian tax resident (standard)

Residents are taxed on worldwide income. Capital gains are ordinary income at the progressive rates (5%-35%; 35% above IDR 5 billion), except sales of shares on the Indonesia Stock Exchange (0.1% final tax on proceeds) and transfers of land and buildings (2.5% final tax on the gross transfer value). Gains on foreign listed shares are therefore taxed at up to 35%, with a foreign tax credit.

• Exemptions and thresholds: None for securities. Gains from mutual funds are exempt (PwC).
• Important exceptions, statute references and announced changes: Foreign experts who become resident may elect to be taxed only on Indonesian-source income for their first four years (Omnibus Law; special regime, needs qualifying skills). Founder shares on IPO: optional 0.5% on listing value.
• Tax year / confidence / verification: 2026 / medium / partially_verified (checked 2026-10-15)
• JSON numbers: headline 35% (0.35); listed domestic 0.2% (0.002); listed foreign 35% (0.35); private business sale 35% (0.35); local real estate 5% (0.05); foreign real estate 35% (0.35).
• How derived: Foreign shares, private company shares and foreign property: top progressive rate 35%. Proceeds-based final taxes converted to a rate on the gain assuming the gain is half of the proceeds: IDX shares 0.1% of proceeds -> 0.2% of the gain; Indonesian land and buildings 2.5% of gross value -> 5% of the gain.
• Holding period: None.
• Trader recharacterisation: Trading as a business is taxed as business income at progressive rates; IDX sales remain under the 0.1% final tax.
• Foreign assets: Worldwide taxation with credit for foreign tax (per-country limit; not detailed by PwC).

Foreign expert: Indonesian-source taxation (4 years) (foreign_expert_territorial)

Foreign gains are not taxed for the first four years; Indonesian gains as standard.

• Tax year / confidence / verification: 2026 / medium / partially_verified (checked 2026-10-15)
• JSON numbers: headline 35% (0.35); listed domestic 0.2% (0.002); listed foreign 0% (0.0); private business sale 35% (0.35); local real estate 5% (0.05); foreign real estate 0% (0.0).
• How derived: Foreign-source gains 0; Indonesian-source as standard.

Dividends

Indonesian tax resident (standard)

Dividends from Indonesian companies bear a 10% final tax, or none if the resident individual reinvests them in Indonesia within the prescribed period. Foreign dividends are taxed at the progressive rates up to 35% with credit for foreign tax, unless they qualify for the reinvestment exemption for foreign dividends introduced by the 2020/2021 tax laws (not verified).

• Important exceptions, statute references and announced changes: Foreign dividends: exemption if invested in Indonesia within a set period (for listed foreign companies the dividend itself; for unlisted, at least 30% of after-tax profit) under the Omnibus/HPP amendments to Income Tax Law Art. 4(3) (general knowledge, not verified).
• Tax year / confidence / verification: 2026 / medium / partially_verified (checked 2026-10-15)
• JSON numbers: headline 35% (0.35); domestic 10% (0.1); foreign gross 35% (0.35); foreign tax relief: credit.
• How derived: Domestic: 10% final (0 if reinvested in Indonesia). Foreign: top progressive rate 35% before credit, assuming no reinvestment in Indonesia.
• Outbound withholding: 20% WHT on dividends to non-residents, reducible by treaty (corporate summary; not opened).
• Treaty network: Around 70 treaties including the US and most EU states (count not verified; PwC treaty page opened).
• Holding companies: CIT 22%; foreign dividends received by Indonesian companies exempt if reinvested (not verified).

Foreign expert: Indonesian-source taxation (4 years) (foreign_expert_territorial)

Foreign dividends are not taxed for the first four years; Indonesian dividends 10% final as standard.

• Tax year / confidence / verification: 2026 / medium / partially_verified (checked 2026-10-15)
• JSON numbers: headline 10% (0.1); domestic 10% (0.1); foreign gross 0% (0.0); foreign tax relief: exemption.
• How derived: Foreign-source dividends 0; domestic 10% final.

Inheritance and gifts to children

Indonesian tax resident (standard)

Indonesia has no inheritance, estate or gift tax. Property acquired by gift is exempt income for the recipient (PwC lists it as exempt; under the Income Tax Law the exclusion covers gifts between direct-line relatives of one degree), and undivided inheritances are not income. The heir pays land and building acquisition duty (BPHTB, up to 5% above a regional threshold that starts at IDR 300 million for inheritances) on Indonesian real estate.

• Important exceptions, statute references and announced changes: BPHTB on inherited Indonesian property is not reflected in other_transfer_cost_rate because the family's estate is mostly securities; foreigners can hold only use rights (Hak Pakai) to land.
• Tax year / confidence / verification: 2026 / high / partially_verified (checked 2026-10-15)
• JSON numbers: basis none, children fully_exempt, scope worldwide, exemption 0 IDR, brackets (marginal): none; other transfer costs 0% (0.0); deemed disposal 0% (0).
• Gifts: No gift tax; gifts to children are excluded from the recipient's income. BPHTB up to 5% applies to transfers of Indonesian land and buildings, including by gift and inheritance. (same as inheritance: True; tax-free after years: None)
• Foreign assets: No tax.
• Residence/domicile rules: Not applicable.
• Business relief covers listed shares: False

Foreign expert: Indonesian-source taxation (4 years) (foreign_expert_territorial)

Same as the standard regime.

Wealth tax

Indonesian tax resident (standard)

No net wealth tax.

• Tax year / confidence / verification: 2026 / high / partially_verified (checked 2026-10-15)
• JSON type: none
• Property tax (not a wealth tax): Land and buildings tax (PBB) annually at up to 0.5% of the government-determined value; BPHTB acquisition duty up to 5% on purchases; 2.5% final tax for the seller.

Foreign expert: Indonesian-source taxation (4 years) (foreign_expert_territorial)

Same as the standard regime.

Special regimes

Foreign expert: Indonesian-source taxation (4 years) (foreign_expert_territorial)

Foreigners who become resident and meet skill requirements are taxed only on Indonesian-source income for their first four years of residence.

• Eligible citizenships: EU, US, OTHER
• Eligibility: Foreign national who becomes tax resident and has qualifying expertise/skills (implemented by regulation; requires work in Indonesia). Not available where a treaty is used for foreign income.
• Duration (years): 4
• Requires qualifying activity: True

Company taxation (kept separate from personal tax)

Headline CIT rate: 22% (0.22). 22% flat CIT; 19% for listed companies meeting a 40% free-float test; small-business reductions. Worldwide taxation of resident companies. Special zones/regimes: Special Economic Zones and tax holidays for pioneer industries (not researched).

Cost of living notes

Not researched in this pass (no quickly verifiable sources).

Open questions

• Only PwC was opened; Income Tax Law (as amended by the Omnibus Law and the HPP Law) not read.
• Golden visa investment thresholds not verified.
• (standard.dividends) Conditions of the foreign dividend reinvestment exemption were not read from the law or regulations.

Sources

• Indonesia - Individual - Income determination (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/indonesia/individual/income-determination
• Indonesia - Individual - Other taxes (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/indonesia/individual/other-taxes
• Indonesia - Individual - Taxes on personal income (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/indonesia/individual/taxes-on-personal-income
• Indonesia - Individual - Foreign tax relief and tax treaties (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/indonesia/individual/foreign-tax-relief-and-tax-treaties
• Indonesia - Individual - Residence (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/indonesia/individual/residence
• Indonesia - Corporate - Taxes on corporate income (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/indonesia/corporate/taxes-on-corporate-income

Change log

• 2026-10-15: initial research.