Indonesia

{"ftc_utility":"high","fbar_trigger_notes":"Indonesian bank accounts (e.g. at BCA, BRI, Mandiri, BNI) are commonly required for expats on KITAS. If aggregate balances across Indonesian and other foreign accounts exceed $10,000 at any point in the year, FBAR filing is required. Indonesia does not have a specific minimum balance requirement but local bank accounts are practically necessary for daily living and payroll.","ftc_utility_reason":"Indonesia taxes residents on worldwide income at progressive rates up to 35%. For expats earning income taxed locally at meaningful rates, the Foreign Tax Credit is highly useful to offset US tax liability on income exceeding the FEIE limit. Indonesian income tax paid can generally be credited against US tax on the same income.","presence_day_count_notes":"Indonesia issues various visa categories for expats including the KITAS (temporary stay permit) and newer Second Home Visa. Standard tourist/social visas limit stays and may complicate 330-day counts if the individual is required to exit periodically. KITAS holders maintaining continuous legal residency can more readily satisfy the bona fide residence test. Days must be tracked carefully as Indonesian immigration rules vary by permit type.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":18000,"local_tax_rate_on_earned_income":0.3,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by Indonesian tax residents is subject to progressive income tax up to 35% as ordinary income. Treaty provisions may limit Indonesian taxation depending on the pension type and source country. Local employer pension fund withdrawals have specific final tax treatment under Indonesian regulations.","tax_rate":0.35,"locally_taxed":true},"social_security":{"notes":"US Social Security benefits are generally taxable only by the US under the US-Indonesia tax treaty. Indonesia does not typically impose local tax on US Social Security received by US expats who are Indonesian tax residents, but this depends on treaty application in practice. No totalization agreement exists between the US and Indonesia.","locally_taxed":false,"treaty_protection":true},"roth_distributions":{"notes":"Indonesia does not recognize the Roth IRA structure. Distributions could be treated as foreign-sourced income and taxed if the recipient is a tax resident. The treaty does not explicitly provide exemption for Roth-type distributions. US expats should seek local tax advice on classification.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"The US-Indonesia tax treaty (1988) covers pensions and annuities. Article 18 generally gives the source country (US) primary taxing rights on pension distributions, but Indonesia may also tax resident recipients under its domestic law. In practice, a US expat resident in Indonesia receiving 401k/IRA distributions may be taxed by Indonesia as ordinary income at progressive rates up to 35%, with a potential FTC offset for US taxes paid. Treaty interpretation in this area requires professional advice as Indonesia's treaty network provisions can be complex in application.","tax_rate":0.35,"locally_taxed":true,"treaty_protection":true}}

{"rate":0.35,"notes":"Indonesia does not have a standalone capital gains tax. Gains on most asset disposals are treated as ordinary income and subject to progressive rates up to 35%. Listed share sales are subject to a final withholding tax of 0.1% of gross transaction value regardless of gain or loss.","details":{"tax_type":"Capital Gains Tax","country_name":"Indonesia","country_iso_code":"IDN","source_references":["PwC Indonesia Tax Summary 2024-25","Indonesian Income Tax Law (UU HPP No. 7/2021)"],"last_verified_date":"2026-06-03","general_description":"Indonesia taxes capital gains as ordinary income under the progressive personal income tax regime for individuals, with rates up to 35%. Specific assets such as listed shares and land/buildings have special final tax treatments. Land and building transfers are subject to a final income tax of 2.5% of the gross transfer value (seller side), and there is also a 5% acquisition duty (BPHTB) paid by the buyer. For listed shares, a final withholding tax of 0.1% applies on gross proceeds at the stock exchange level.","corporate_capital_gains":{"rate":0.22,"tax_treatment":"Gains included in taxable income and subject to standard corporate income tax rate of 22%. Land and building transfers subject to 2.5% final income tax on gross proceeds."},"individual_capital_gains":{"rate":0.35,"notes":"The 0.1% final tax on listed share sales applies regardless of whether a gain or loss is realized. Founders shares subject to an additional 0.5% final tax on the shares value at IPO if not settled at IPO.","tax_treatment":"Gains generally taxed as ordinary income at progressive rates up to 35%. Listed share sales subject to 0.1% final withholding on gross transaction value. Land and building transfers subject to 2.5% final income tax on gross proceeds for the seller.","listed_shares_final_tax":0.001,"land_building_transfer_final_tax":0.025}}}

{"notes":"Under the Job Creation Law (UU Cipta Kerja) effective 2021, dividends received by resident individuals from Indonesian companies are exempt from income tax provided they are reinvested in Indonesia within a specified period. If not reinvested, they are subject to a 10% final withholding tax. Dividends paid to non-resident individuals or foreign entities are subject to a 20% withholding tax, reducible under applicable tax treaties. Prior to 2021, the rate for residents was 10% final.","rates":[{"rate":0.1,"type":"withholding","notes":"Final WHT rate for resident individuals who do not meet the reinvestment requirement. Dividends exempt if reinvested in Indonesia per regulations."},{"rate":0,"type":"exempt","notes":"Dividends received by resident individuals are exempt if reinvested in Indonesia within the prescribed period under UU HPP/Cipta Kerja rules."},{"rate":0.2,"type":"withholding","notes":"Standard WHT rate for dividends paid to non-residents (individuals and entities). Reduced by applicable tax treaty; US-Indonesia treaty reduces this to 15% in most cases (10% for substantial holdings)."}]}