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Zantara AI
AI Tax Advisor
Bali Zero handles visas, company setup, tax and property compliance in Indonesia. Ask us directly on WhatsApp.
Chat with Bali Zero on WhatsAppTL;DR: Capital gains tax in Indonesia varies by asset: property sales taxed at 2.5% PPh Final on transaction value (not profit), listed shares at 0.1% on gross proceeds, unlisted shares at progressive rates up to 35%. Most gains are "final" — no further inclusion in annual SPT required. Foreign investors selling Indonesian property pay 2.5% regardless of holding period.
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:
| Asset Type | Tax Rate | Tax Mechanism | Base |
|---|---|---|---|
| Land and buildings | 2.5% | PPh Final | Gross sale price or NJOP |
| Listed shares (IDX) | 0.1% | PPh Final | Gross transaction value |
| Founder shares (IPO) | 0.1% + 0.5% | PPh Final | Transaction + initial value |
| Unlisted shares (resident) | Progressive 5-35% | Regular income tax | Net gain |
| Unlisted shares (non-resident) | 20% (or treaty rate) | Withholding tax | Net gain |
| Other assets | Progressive 5-35% | Regular income tax | Net gain |
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:
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.
| Item | Amount |
|---|---|
| Sale price | IDR 8,000,000,000 |
| NJOP | IDR 6,000,000,000 |
| Tax base (higher of sale/NJOP) | IDR 8,000,000,000 |
| PPh Final (2.5%) | IDR 200,000,000 |
| Actual gain | IDR 3,000,000,000 |
| Effective tax on gain | 6.7% |
Example 2: Land Sale in Ubud
You purchased agricultural land for IDR 800,000,000 and sell it for IDR 2,000,000,000.
| Item | Amount |
|---|---|
| Sale price | IDR 2,000,000,000 |
| PPh Final (2.5%) | IDR 50,000,000 |
| Actual gain | IDR 1,200,000,000 |
| Effective tax on gain | 4.2% |
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).
| Item | Amount |
|---|---|
| Sale price | IDR 2,500,000,000 |
| PPh Final (2.5%) | IDR 62,500,000 |
| Actual loss | (IDR 500,000,000) |
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.
Certain property transfers are exempt from the 2.5% PPh Final:
| Exemption | Condition |
|---|---|
| Government expropriation | Compulsory acquisition for public interest |
| Inheritance | Transfer by death (subject to estate rules) |
| Property value below IDR 60 million | Small-value exemption |
| Simple housing (RSS/RSH) | Government-subsidized housing programs |
| Company restructuring | Certain approved mergers/spin-offs |
The PPAT will not sign the AJB without proof of PPh Final payment by the seller (and BPHTB payment by the buyer).
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.
| Feature | Detail |
|---|---|
| Rate | 0.1% of gross sale value |
| Mechanism | Automatically withheld by broker |
| Tax type | PPh Final |
| Reporting | No additional reporting needed |
| Loss offset | Not available |
Example: Selling IDX Shares
You sell shares worth IDR 500,000,000 (regardless of purchase price):
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.
Founders of companies that go public on IDX have an additional tax obligation:
This additional 0.5% is a one-time payment when the company lists, calculated on the founder's shareholding value at IPO price.
For investors deciding between holding for dividends versus selling for capital gains:
| Income Type | Tax Rate | Mechanism |
|---|---|---|
| Dividends (listed, reinvested) | 0% | Exempt if reinvested in Indonesia within 3 months |
| Dividends (listed, not reinvested) | 10% PPh Final | Withheld by company |
| Capital gains (listed shares) | 0.1% PPh Final | Withheld by broker |
| Dividends (unlisted, domestic) | 10% PPh 23 | Withheld by company |
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.
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:
| Taxable Income Bracket | Rate |
|---|---|
| Up to IDR 60,000,000 | 5% |
| IDR 60,000,000 - 250,000,000 | 15% |
| IDR 250,000,000 - 500,000,000 | 25% |
| IDR 500,000,000 - 5,000,000,000 | 30% |
| Above IDR 5,000,000,000 | 35% |
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.
| Item | Amount |
|---|---|
| Sale price | IDR 5,000,000,000 |
| Cost basis | IDR 2,500,000,000 |
| Taxable gain | IDR 2,500,000,000 |
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:
Non-residents disposing of shares in Indonesian companies face:
Example with Tax Treaty:
A Singapore resident sells shares in an Indonesian PT PMA with a gain of IDR 1,000,000,000:
| Scenario | Rate | Tax |
|---|---|---|
| No treaty | 20% | IDR 200,000,000 |
| Indonesia-Singapore treaty | 10% | IDR 100,000,000 |
Always check the applicable tax treaty between Indonesia and your country of tax residence. See our Double Taxation Treaties guide for details.
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.
The sale of business assets (vehicles, machinery, equipment) by a company generates a gain or loss that is part of regular corporate income:
Disposal of intangible assets follows the same principle:
Capital gains from mutual fund redemptions are currently:
This makes mutual funds one of the most tax-efficient investment vehicles in Indonesia.
| Asset | Resident Rate | Non-Resident Rate | Final? | Base |
|---|---|---|---|---|
| Land/buildings | 2.5% | 2.5% | Yes | Gross sale price |
| Listed shares (IDX) | 0.1% | 0.1% | Yes | Gross transaction |
| Unlisted shares | 5-35% progressive | 20% (or treaty) | No/Yes | Net gain |
| Crypto (registered exchange) | 0.1% | 0.1% | Yes | Transaction value |
| Mutual funds | 0% | 0% | N/A | N/A |
| Business assets | 22% corporate | 20% (or treaty) | No | Net gain |
| Founder shares (IPO) |
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%.
If you anticipate selling your PT PMA shares (which hold property), the tax treatment differs from selling the property directly:
Depending on the numbers, one path may be significantly more tax-efficient.
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.
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.
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.
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.
These must be included in your taxable income calculation:
More in this series — Rental & property income tax
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.
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.
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).
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.
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.
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| 0.5% additional |
| 0.5% additional |
| Yes |
| IPO value |