Indonesia Tax Guide for Foreigners 2026 | Complete

Q: When does a foreigner become a tax resident in Indonesia?

You become an Indonesian tax resident after staying 183 days in any 12-month period, or if you intend to stay in Indonesia (evidenced by KITAS/work permit). Tax residents pay progressive rates on worldwide income and must register for NPWP.

Q: What are the income tax rates for foreigners in Indonesia?

Progressive rates apply: 5% on income up to IDR 60 million, 15% on IDR 60-250M, 25% on IDR 250-500M, 30% on IDR 500M-5B, and 35% above IDR 5 billion. Non-residents pay a flat 20% withholding tax on Indonesian-sourced income.

Q: Do expats in Indonesia pay tax on foreign income?

Under PMK 18/2021, foreign-sourced income is taxed at 0% if not remitted to Indonesia, provided you meet specific conditions. This creates a territorial tax system benefiting expats earning from overseas clients or employers.