Kupang

Once you are tax resident, Indonesia taxes your worldwide income at 5% to 35%. A one-year stay permit such as the E33G remote worker visa counts as intent to reside, so residence can start on arrival. No law exempts E33G holders. The 4-year foreign-income exemption is only for approved foreign experts. Foreign dividends reinvested in Indonesia are exempt. There is no wealth or inheritance tax.

• Remote work income

  Salary from a foreign employer or fees from foreign clients

  Taxed

  5%–35% progressive after an allowance of Rp54 million a year

• Investments and pensions

  Dividends, interest, gains, rent and pensions from abroad

  Taxed

  5%–35% progressive on foreign interest, gains, rent and pensions; foreign dividends exempt if reinvested in Indonesia

• Wealth

  Net wealth and inheritance

  No wealth tax

  No inheritance tax

Tax resident after

183 days a year

Top income tax rate

35%

• Foreign national with certain expertise (taxed only on Indonesian income)4 years

  Only Indonesian-source income is taxed, so foreign dividends, interest, capital gains, rent and pensions are exempt for 4 tax years counted from when you first became resident (Income Tax Law, Article 4(1a); PMK 81/2024, Articles 442–446). Pay for work done in Indonesia stays taxable at 5%–35% even when paid abroad.

  Who qualifies: Foreigners who become Indonesian tax residents and work in a listed position for an employer in Indonesia under an approved foreign manpower plan (RPTKA), or who are foreign researchers, and who prove expertise in science, technology or mathematics by certificate, degree or 5 years' experience and have a duty to transfer knowledge. You apply to the Directorate General of Taxes, which decides within 10 working days. You cannot also claim treaty benefits for foreign income.

• 0.5% final tax on small-business turnover (PPh Final UMKM)no fixed end

  0.5% of gross turnover as a final tax instead of 5%–35% of profit, and the first Rp500 million of turnover each year is tax-free. Since PP 20/2026 (in force 22 April 2026) individuals can use it with no time limit. Exceeding Rp4.8 billion ends it for later years. Income taxed or owed abroad is excluded, and how it applies to fees from foreign clients is not spelled out.

  Who qualifies: Resident individuals whose gross business turnover, including turnover earned abroad, is no more than Rp4.8 billion a year. Independent professions are excluded: lawyers, accountants, architects, doctors, consultants and similar experts, artists and online content creators, advisers, teachers and coaches, authors, researchers and translators, project managers, agents and brokers.

• Undang-Undang Nomor 7 Tahun 2021 tentang Harmonisasi Peraturan Perpajakan (UU HPP) · JDIH Kementerian Keuangan Republik Indonesia · read 2026-10-27

  Amended Income Tax Law: Art 4(1a)–(1b) (foreigners with certain expertise taxed only on Indonesian income for 4 tax years; pay for work in Indonesia paid abroad counts as Indonesian income); Art 4(2) (final taxes on interest, share transactions, land and buildings, rent); Art 4(3) (gifts within one degree of direct line and inheritances excluded; foreign and domestic dividend reinvestment exemptions, 30% of after-tax profit, reference to the Art 24 foreign tax credit); Art 7 (PTKP Rp54 million; Rp500 million turnover exempt); Art 17(1)(a) (5%–35% brackets, 35% above Rp5 billion) and 17(2c) (final tax on dividends to resident individuals capped at 10%)

• Peraturan Direktur Jenderal Pajak PER-23/PJ/2025 tentang Penentuan Subjek Pajak Dalam Negeri dan Subjek Pajak Luar Negeri · Direktorat Jenderal Pajak (pajak.go.id) · read 2026-10-27

  In force 9 December 2025. Art 3–4: a foreign national is resident if residing in Indonesia (home, centre of interests, daily activities), present more than 183 days in 12 months (part days count), or present in a tax year with intent to reside, evidenced by KITAP, VITAS or ITAS valid over 183 days, contracts or leases over 183 days, or family relocation; Art 6: non-resident if 183 days or fewer

• Peraturan Menteri Keuangan Nomor 81 Tahun 2024 tentang Ketentuan Perpajakan dalam Rangka Pelaksanaan Sistem Inti Administrasi Perpajakan · JDIH Kementerian Keuangan Republik Indonesia · read 2026-10-27

  Arts 442–446 (foreign nationals with certain expertise: listed positions under an employer's RPTKA or foreign researchers, science/technology/mathematics expertise by certificate, degree or 5 years' experience, knowledge transfer, 4 tax years from first residence, no treaty benefits at the same time, application decided in 10 working days); Art 169 (individual annual return due 3 months after the tax year); revokes PMK 18/PMK.03/2021 Arts 7–13 from 1 January 2025. Amended by PMK 54/2025 and PMK 1/2026, which were not checked for these articles

• Peraturan Menteri Keuangan Nomor 18/PMK.03/2021 (pelaksanaan UU Cipta Kerja di bidang pajak penghasilan) · JDIH Kementerian Keuangan Republik Indonesia · read 2026-10-27

  Art 36: dividends must be invested by the end of the third month after the tax year (individuals) and kept invested for at least 3 tax years; partly revoked by PMK 81/2024 (not Art 36)

• Pengenaan PPh hanya atas penghasilan yang diterima atau diperoleh dari Indonesia oleh WNA (panduan layanan) · Direktorat Jenderal Pajak (pajak.go.id) · read 2026-10-27

  Application for the foreign-expert regime needs a copy of the employer's foreign manpower plan (RPTKA), passport, visa and KITAS, and proof of expertise or 5 years' experience

• Peraturan Pemerintah Nomor 20 Tahun 2026 tentang Perubahan atas PP 55 Tahun 2022 · JDIH Kementerian Keuangan Republik Indonesia · read 2026-10-27

  0.5% final tax on business turnover up to Rp4.8 billion for individuals; independent professions excluded (Art 56(3)–(4), list including consultants and online content creators); foreign turnover counts toward the limit (Art 58); income taxed or owed abroad excluded; Art 59 time limit deleted, so individuals have no time limit; in force 22 April 2026

• E33G Visa Rumah Kedua Pekerja Jarak Jauh · Direktorat Jenderal Imigrasi, Kementerian Imigrasi dan Pemasyarakatan Republik Indonesia · read 2026-10-27

  One-year stay for carrying out work for a foreign company; the page says nothing about income tax and gives no exemption

• PP 131 Tahun 2000: Pajak Penghasilan atas Bunga Deposito dan Tabungan serta Diskonto Sertifikat Bank Indonesia · Direktorat Jenderal Pajak (pajak.go.id) · read 2026-10-27

  20% final tax on deposit and savings interest for resident taxpayers; balances up to Rp7,500,000 exempt

• PP 91 Tahun 2021: Pajak Penghasilan atas Penghasilan berupa Bunga Obligasi · Direktorat Jenderal Pajak (pajak.go.id) · read 2026-10-27

  10% final tax on bond interest received by resident taxpayers

• PP 34 Tahun 2016: Pajak Penghasilan atas Penghasilan dari Pengalihan Hak atas Tanah dan/atau Bangunan · Direktorat Jenderal Pajak (pajak.go.id) · read 2026-10-27

  2.5% final tax on the gross value of a transfer of land or buildings (1% for simple houses sold by developers)

• PPh atas Kontrakan Bukan Pajak Baru (article on PP 34/2017) · Direktorat Jenderal Pajak (pajak.go.id) · read 2026-10-27

  Quotes PP 34/2017 Arts 2(1) and 4(1): 10% final tax on gross rent from land or buildings. A staff article marked as the author's personal opinion, used only for the quoted regulation text

• Undang-Undang Nomor 1 Tahun 2022 tentang Hubungan Keuangan antara Pemerintah Pusat dan Pemerintahan Daerah · JDIH Kementerian Keuangan Republik Indonesia · read 2026-10-27

  Art 41 (PBB-P2 land and building tax at most 0.5%, set by regional regulation); Art 44 (BPHTB covers acquisition by sale, gift and inheritance); Art 47 (BPHTB at most 5%)