DoubleTaxationTaxes on salary: Indonesia preliminary data
How much income tax and social contributions are paid on a salary in Indonesia, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | IDR 1,179,859,302 ≈ €60,000 |
|---|---|
| Income tax | IDR 272,498,928 ≈ €13,858 |
| Employee contributions | IDR 24,862,874 ≈ €1,264 |
| Take-home pay | IDR 882,497,500 ≈ €44,878 |
| Employer contributions and payroll taxes | IDR 52,557,410 ≈ €2,673 |
| Employer's labour cost | IDR 1,232,416,712 ≈ €62,673 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 IDR 589,929,651 | €60,000 IDR 1,179,859,302 | €120,000 IDR 2,359,718,604 |
|---|---|---|---|
| Sole proprietor | IDR 88,234,171 16.6 % | IDR 246,362,012 23.2 % | IDR 564,924,023 26.6 % |
| Company | IDR 158,219,132 29.8 % | IDR 316,438,265 29.8 % | IDR 632,876,530 29.8 % |
| Sole proprietor · PPh Final UMKM (final income tax for micro, small and medium businesses) | IDR 449,648 0.1 % | IDR 3,399,297 0.3 % | IDR 9,298,593 0.4 % |
Special tax regimes
Territorial taxation for foreign experts (WNA with certain expertise)
For people relocating
Who: Foreign citizens with certain expertise who become Indonesian tax residents; for the first 4 tax years of residence.
Only Indonesian-source income is taxed; foreign income is left out.
Legal basis: Income Tax Law Art. 4(1a), inserted by Law 7/2021 on Harmonisation of Tax Regulations (HPP)
Tax residence
The tax residence check does not cover Indonesia yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 19664.3217 IDR (Ministry of Finance (BKF) — tax exchange rate (kurs pajak), KMK 31/MK/EF.2/2025, valid 31 Dec 2025 – 6 Jan 2026; Bank Indonesia site not reachable, 2026-01-02) ↗
Sources
- Directorate General of Taxes — Law 7/2021 on Harmonisation of Tax Regulations (HPP), official copy (Art. 17 rates, Art. 4(1a), PTKP)
- Directorate General of Taxes — UU HPP explainer page
- Directorate General of Taxes — PPh Final UMKM 0.5%
- BPJS Ketenagakerjaan — Penerima Upah (wage earners): contribution rates and JP wage cap
- Ministry of Finance (BKF) — Kurs Pajak 31 Dec 2025 – 6 Jan 2026
- Directorate General of Taxes — PP 20/2026: 0.5% PPh rate for individual MSMEs without time limit
Data checked: 2026-11-08. An indicative calculation for a typical case. Not tax advice.