Corporate Income Tax Indonesia 2026 | CIT Guide

Q: What is the corporate tax rate in Indonesia for 2026?

The standard corporate income tax (PPh Badan) rate is 22%. SMEs with annual revenue under IDR 4.8 billion qualify for 0.5% final tax rate. Publicly listed companies with 40%+ free float get a 3% reduction to 19%.

Q: What expenses can Indonesian companies deduct from taxable income?

Deductible expenses include employee salaries and benefits, office rent and utilities, depreciation of assets, business travel, professional fees, bad debts (with conditions), and CSR contributions up to 5% of net income. Entertainment expenses require a nominative list.

Q: When is the corporate tax return due in Indonesia?

Corporate SPT Tahunan PPh Badan is due by April 30 each year, four months after the fiscal year ends. Monthly corporate tax installments (PPh 25) are due by the 15th of each month.