Tax-Indo News

Helping You Stay Informed

corporate taxes

Complete Guide to Types of Corporate Taxes in Indonesia

Understanding corporate taxes is a crucial aspect of running a business in Indonesia. Every business entity is obliged to pay various direct taxes based on the type of income received. A profound understanding of these tax types is vital for companies to comply with their tax obligations accurately. Here are several types of taxes imposed on companies in Indonesia.

corporate tax in indonesia

PPh 21 (Article 21 Income Tax)

PPh Article 21 is income tax deducted directly from employees’ salaries by the company. The company acts as the withholder and is responsible for providing proof of deduction to its employees.

PPh 23 (Article 23 Income Tax)

PPh Article 23 is levied on income such as gifts, awards, capital, and services that have not been subject to previous tax deductions.

PPh Article 26

PPh Article 26 is imposed on income received by taxpayers from overseas, excluding income from businesses or operations located in Indonesia.

PPh Article 25

PPh Article 25 constitutes advance income tax payments based on the previous year’s corporate income tax.

PPh Article 29

PPh Article 29 represents underpaid tax recorded in the Annual Income Tax Return (SPT Tahunan PPh), which is the remaining tax due for the tax year minus tax credits.

PPh Article 4 Paragraph (2)

PPh Article 4 paragraph (2) is a final tax imposed on certain types of income and cannot be credited against income tax due.

The Importance of Choosing a Reliable Tax Consultant for Companies in Indonesia

Tax consultants from Tax-Indo are pivotal in managing corporate taxes. In Indonesia, the necessity for tax consultants is significant due to the continuously evolving complexity of tax regulations.

Tax-Indo has an in-depth understanding of tax rules and regulations in Indonesia. We can assist companies in comprehending applicable tax requirements based on their business type and income.

Our consultants are dedicated to aiding companies in optimizing their tax obligations. Through accurate analysis, we recommend strategies to reduce legal tax burdens in line with prevailing regulations.

With the support of experienced tax consultants from Tax-Indo, companies can effectively manage their taxes, optimize tax obligations, and comply with current regulations.



Tax & Legal Associates

Discover Indonesian Market Entry Insights

Major Changes in Indonesia’s Visa Regulations Effective from December 31, 2023 Indonesia gears up for a significant overhaul in its visa regulations, set to take effect from December 31, 2024, reflecting the nation’s commitment to accommodating expatriates’ evolving needs. The latest adjustments, outlined in Peraturan Menteri Hukum dan Hak Asasi Manusia Nomor 22 Tahun 2023, […]

The Indonesian government recently introduced amendments to the Investor KITAS regulations (PERMENKUMHAM no. 22 Year 2023 about Stay Permit/ Visa to Indonesia) aimed at refining foreign investments in the country. The most significant change involves a tenfold increase in the required investment amount for foreign investors engaging in Foreign Direct Investment (PMA) companies. Formerly set […]

Streamlining Company Registration Navigating the process of registering a company is pivotal and can be made simpler by adhering to the latest regulations. Indonesia, despite its bureaucratic intricacies, offers numerous business opportunities by providing tailored options for registering your company.  What is PT PMA? A Preferred Choice for Foreign Investors For foreign investors, establishing a […]

In Indonesia’s property investment, a crucial step to master is conducting due diligence before making any investment decisions. This process involves a series of steps aimed at gathering accurate and comprehensive information about the property in question. The due diligence process for a property in Indonesia involves collecting information and analyzing various aspects related to […]

The Tax Identification Number (NPWP) is a mandatory identity for Indonesian residents with income. NPWP is essential for citizens to pay income tax earned in Indonesia.  Previously, the NPWP registration process required a visit to the nearest Tax Office (KPP), posing challenges due to its lengthiness. Now, the NPWP registration can be completed online through […]


Get in Touch