Capital Gains Tax Indonesia 2026: 2.5% Property, 0.1% Shares, Asset Disposal

WhatsApp

How Indonesia Taxes Capital Gains

Indonesia does not have a unified "capital gains tax" like the US or UK. Instead, gains on the disposal of different asset types are taxed under separate provisions of the income tax law (UU PPh), each with its own rate and mechanism.

Most capital gains in Indonesia are taxed as PPh Final -- a flat-rate final tax that is simple to calculate and requires no further reporting on your annual tax return. This is one of the more investor-friendly aspects of Indonesia's tax system.

Here is the overview:

Property Capital Gains: 2.5% PPh Final

The Basics

When you sell land or buildings in Indonesia, the seller pays 2.5% PPh Final on the gross transaction value under PP No. 34/2016. This replaced the previous 5% rate (which was effective from 2008-2016).

Key characteristics:

• Final tax -- no further obligation on the gain
• On gross value -- not on the profit (gain), but on the entire sale price
• No deductions -- purchase price, renovation costs, agent fees are irrelevant for this tax
• No holding period benefit -- same rate whether held 1 year or 20 years

Calculation Examples

Example 1: Villa Sale in Seminyak

You purchased a villa in 2020 for IDR 5,000,000,000 and sell it in 2026 for IDR 8,000,000,000.

Example 2: Land Sale in Ubud

You purchased agricultural land for IDR 800,000,000 and sell it for IDR 2,000,000,000.

Example 3: Quick Flip (Loss Scenario)

You purchased a property for IDR 3,000,000,000 and are forced to sell at IDR 2,500,000,000 (a loss).

Even when you sell at a loss, you still owe the 2.5% PPh Final. There is no loss offset, no carryforward, and no exemption for loss-making sales. This is the downside of the flat-rate final tax system.

Exemptions from Property PPh Final

Certain property transfers are exempt from the 2.5% PPh Final:

Payment Process for Property PPh Final

1. Calculate the 2.5% tax on the sale value
2. Create e-Billing code through DJP Online or Coretax
3. Pay via bank transfer, ATM, or online banking
4. Obtain SSP (Surat Setoran Pajak) as proof
5. Present the SSP to the PPAT/notary before signing the AJB
6. Report on SPT Tahunan (though the tax itself is final)

The PPAT will not sign the AJB without proof of PPh Final payment by the seller (and BPHTB payment by the buyer).

Stock Market Capital Gains: 0.1% PPh Final

Listed Shares on IDX

Gains from selling shares listed on the Indonesia Stock Exchange (IDX/BEI) are taxed at 0.1% PPh Final on the gross transaction value under PP No. 14/1997.

Example: Selling IDX Shares

You sell shares worth IDR 500,000,000 (regardless of purchase price):

• PPh Final: 0.1% x IDR 500,000,000 = IDR 500,000

The tax is automatically deducted by your securities broker at the time of sale. You do not need to calculate, report, or pay anything separately.

Founder Shares

Founders of companies that go public on IDX have an additional tax obligation:

• 0.1% PPh Final on regular share sales (same as all investors)
• Additional 0.5% PPh Final on the deemed value of shares at IPO time

This additional 0.5% is a one-time payment when the company lists, calculated on the founder's shareholding value at IPO price.

Dividend vs Capital Gains on Shares

For investors deciding between holding for dividends versus selling for capital gains:

The 0.1% capital gains rate on listed shares is among the lowest in the world, making IDX an attractive market from a tax efficiency perspective.

Unlisted Share Disposals

Resident Taxpayer

When a resident taxpayer sells shares in a private company (not listed on IDX), the gain is taxed as regular income under progressive tax rates:

The gain is calculated as:

Gain = Sale Price - Cost Basis (purchase price + acquisition costs)

Example: PT PMA Share Sale

You originally invested IDR 2,500,000,000 for 49% of a PT PMA. You sell your shares for IDR 5,000,000,000.

This IDR 2,500,000,000 gain is added to your other income for the year and taxed at progressive rates. If this is your only income, the tax would be approximately:

• 5% on first IDR 60M = IDR 3,000,000
• 15% on next IDR 190M = IDR 28,500,000
• 25% on next IDR 250M = IDR 62,500,000
• 30% on remaining IDR 2,000M = IDR 600,000,000
• Total tax: approximately IDR 694,000,000 (effective rate: ~27.8%)

Non-Resident Taxpayer

Non-residents disposing of shares in Indonesian companies face:

• 20% withholding tax on the gross gain (or treaty-reduced rate)
• The buyer is obligated to withhold and remit to the tax office
• Many tax treaties reduce this to 10% or 15%

Example with Tax Treaty:

A Singapore resident sells shares in an Indonesian PT PMA with a gain of IDR 1,000,000,000:

Always check the applicable tax treaty between Indonesia and your country of tax residence. See our Double Taxation Treaties guide for details.

Other Capital Gains Situations

Crypto and Digital Assets

Cryptocurrency disposals are subject to PPh Final of 0.1% on the transaction value when traded through registered Indonesian exchanges (under PMK 68/2024). See our Crypto Tax guide for a comprehensive breakdown.

Vehicle and Equipment Sales

The sale of business assets (vehicles, machinery, equipment) by a company generates a gain or loss that is part of regular corporate income:

• Gain = Sale price - Book value (after depreciation)
• Taxed at the corporate rate of 22%
• Losses can offset other income

Intellectual Property and Goodwill

Disposal of intangible assets follows the same principle:

• Gain = Proceeds - Amortized book value
• Subject to regular corporate income tax at 22%
• Or withholding tax for non-resident sellers

Mutual Funds (Reksa Dana)

Capital gains from mutual fund redemptions are currently:

• 0% tax for gains realized from mutual fund units
• Dividends distributed by the mutual fund may be taxed separately

This makes mutual funds one of the most tax-efficient investment vehicles in Indonesia.

Capital Gains Tax Comparison Table

Tax Planning Strategies

1. Hold Property Long-Term

Since property PPh Final is 2.5% of the gross sale price regardless of gain, the effective tax rate on your actual profit decreases the longer you hold. A property that doubles in value has an effective gain tax of 5%, while one that triples has an effective rate of 3.75%.

2. Use Corporate Structures Strategically

If you anticipate selling your PT PMA shares (which hold property), the tax treatment differs from selling the property directly:

• Sell property from PT PMA: 2.5% PPh Final on gross sale price
• Sell PT PMA shares: Progressive rates on net gain (5-35%) for residents, or 20%/treaty rate for non-residents

Depending on the numbers, one path may be significantly more tax-efficient.

3. Reinvest Dividends from Listed Shares

Dividends from listed shares that are reinvested in Indonesian securities within 3 months are exempt from the 10% PPh Final. If you are building a portfolio, this creates a significant compounding advantage.

4. Leverage Tax Treaties

Non-residents should always claim treaty benefits when disposing of Indonesian assets. The difference between 20% and 10% on a large share sale can be tens or hundreds of millions of IDR.

5. Time Your Disposals

For unlisted share sales taxed at progressive rates, timing matters. If you can split a large disposal across two tax years, you may reduce the overall rate by staying in lower brackets each year.

Reporting Capital Gains

PPh Final Gains (Property, Listed Shares, Crypto)

These are reported on your SPT Tahunan (annual tax return) under the "PPh Final" section. Since the tax is already paid, no additional tax is due. You are simply disclosing the transaction.

Non-Final Gains (Unlisted Shares, Business Assets)

These must be included in your taxable income calculation:

1. Calculate the net gain (proceeds minus cost basis)
2. Include in your total taxable income for the year
3. Apply progressive rates (or corporate 22% rate)
4. Pay any additional tax due via e-Billing
5. Report on SPT Tahunan with supporting documentation

Frequently Asked Questions

What is the tax on selling property in Indonesia?

Sellers pay 2.5% PPh Final on the gross transaction value (or NJOP, whichever is higher). This is a final tax -- no deductions for purchase cost, improvements, or holding period. For a property sold at IDR 5 billion, the seller's tax is IDR 125 million.

How are shares taxed when sold in Indonesia?

Listed shares on IDX are taxed at 0.1% PPh Final on gross transaction value. Unlisted (private) shares are taxed at progressive rates (5-35%) on the actual gain. For founder shares of listed companies, an additional 0.5% tax applies.

Do foreigners pay capital gains tax in Indonesia?

Yes. Non-resident foreigners disposing of Indonesian assets pay: 2.5% on property, 0.1% on listed shares, and 20% withholding tax on gains from unlisted shares (or reduced rate under applicable tax treaty).

Can capital losses be offset against gains?

For PPh Final taxes (property, listed shares), no -- losses cannot offset gains. For non-final gains (unlisted shares, business assets), losses within the same category can offset gains as part of your total taxable income calculation. Business losses can be carried forward for up to 5 years.

Is there a capital gains tax exemption for primary residence?

Indonesia does not currently offer a primary residence exemption for capital gains tax. The 2.5% PPh Final applies to all property sales regardless of whether it is your primary home.

Get Expert Capital Gains Tax Advice

Capital gains tax in Indonesia has many moving parts — different rates for different assets, final vs non-final treatment, treaty implications for non-residents, and corporate vs personal structures. Getting it wrong can cost millions. Speak with a BaliZero tax advisor to optimize your position before you transact.

WhatsApp