Withholding Tax Indonesia 2026 | Complete PPh Guide

Q: What is the difference between PPh 21, PPh 23, and PPh 26?

PPh 21 applies to employment income (progressive 5-35%). PPh 23 applies to payments to Indonesian residents for services (2%), dividends, interest, royalties (15%). PPh 26 applies to payments to non-residents (20% or treaty rate). The distinction depends on recipient's status and payment type.

Q: What are the PPh 4(2) final withholding tax rates?

PPh 4(2) final rates include: property rental (10%), construction services (2-6% depending on qualification), land/building sales (2.5%), lottery prizes (25%), and PP 55 MSME final tax (0.5%). These are final taxes - no further calculation needed at year end.

Q: When must withholding tax be remitted in Indonesia?

Withholding taxes must be paid to the state treasury by the 10th of the following month. SPT Masa (monthly return) must be filed by the 20th. Use e-Bupot system for generating withholding certificates and e-Billing for payment.