Pages: 35 (8656 words) / Published: Apr 30th, 2013
Individual income tax (Pajak penghasilan) rates in Indonesia are progressive up to30%, as follows:
Taxable income (Rp) Tax Rate
0 – 50,000,000 0 + 5% on excess
50,000,001 – 250,000,000 2,500,000 + 15% on excess
250,000,001 – 500,000,000 32,500,000 + 25% on excess
Above 500,000,000 95,000,000 + 30% on excess
An additional 20% tax is imposed on the individuals, other than non-tax residents, who do not posses tax identification number (NPWP).
ALLOWABLE TAX DEDUCTIONS
In determining the annual taxable income of an individual, the following may be deducted from gross income:
- Occupational support: 5% of gross income, up to maximum of 6,000,000
- Pension: 5% of gross income, up to maximum of 2,400,000
- Non-taxable income: . For the taxpayer 15,840,000 . Additional for a married taxpayer 1,320,000 . Additional for each lineal family member related by blood marriage who is a full dependent up to a maximum of three 1,320,000 each
A married female employee is only allowed non-taxable income for herself unless she has a certificate from the local authorities stating that her husband does not work.
Non-resident individuals are subject to a final tax of 20% where the payments represent compensation for work performed in Indonesian regardless of where paid.
Lump sump pension payments and severance pay on individual residents are subject to final tax on the gross amount at the following rates:
Taxable income Tax Rate
0 – 25,000,000 exempt/non taxable income
25,000,001 – 50,000,000 5% on excess
50,000,001 – 100,000,000 1,250,000 + 10% on excess
100,000,001 – 200,000,000 6,250,000 + 15% on excess
200,000,000 and above 21,250,000 + 25% on excess
However, pension payments made to