🇮🇩 Tax Overview — Indonesia

Foreign Investment Limited Liability Company (PT PMA)

PT PMA companies are taxed at the standard corporate income tax rate of 22% on worldwide income. Public companies that list at least 40% of their shares on the Indonesia Stock Exchange qualify for a reduced rate of 19%. Small and medium enterprises with annual turnover up to IDR 4.8 billion can elect to pay a final income tax of 0.5% on gross turnover for the first three years. VAT is 11% on most goods and services. Withholding tax on dividends paid to non-resident shareholders is 20%, reduced under Indonesia's 71 double tax treaties (typically to 10–15%). Interest and royalty payments to non-residents are also subject to 20% withholding tax, treaty-reduced. Indonesia applies transfer pricing rules aligned with OECD guidelines. Tax holidays of 5–20 years (100% CIT reduction) are available for pioneer industries meeting minimum investment thresholds.