Indonesia: tax residency, rates & nomad visa

Tax residency rules in Indonesia

As of 2026, Indonesia’s tax-residency test centres on a presence threshold of 183 days^ⓘPwC Worldwide Tax Summaries“Is present in Indonesia for more than 183 days in any 12-month period.”View source · accessed 2026-09-18. An individual becomes an Indonesian tax resident either by being present in Indonesia for more than 183 days in any 12-month period, or by being present during a tax year while intending to reside there, so the day count is not the only route to residency. Even an Indonesian citizen who spends less than 183 days in the country can still be treated as resident unless extra tests, such as having a permanent home or centre of vital interest abroad, are met.

Worldwide income basis

Indonesian tax residents are taxed on their worldwide income, subject to relief under double tax treaties, while individuals who do not meet the residency tests are only taxed on income sourced in Indonesia. This resident-versus-non-resident split is the foundation of Indonesia's personal income tax system. [source]PwC Worldwide Tax Summaries“A tax resident is generally taxed on worldwide income, although this may be mitigated by the application of double taxation agreements (DTAs).”View source · accessed 2026-09-18

Income tax rates in Indonesia

As of 2026, the headline personal income tax rate in Indonesia is 35%^ⓘPwC Worldwide Tax Summaries“Up to IDR 60 million: 5%, above IDR 60 million up to IDR 250 million: 15%, above IDR 250 million up to IDR 500 million: 25%, above IDR 500 million up to IDR 5 billion: 30%, above IDR 5 billion: 35%”View source · accessed 2026-09-18. The top marginal personal income tax rate in Indonesia is 35 percent, applying to taxable income above IDR 5 billion per year. This is the highest bracket in Indonesia's five-tier progressive scale for resident individuals.

Vat standard rate

Indonesia's VAT (PPN) is nominally 12 percent, but the government applies it to a reduced tax base so that most goods and services in practice face an effective rate of about 11 percent rather than the full 12 percent. The law also allows the rate to be adjusted between 5 and 15 percent by government regulation after consulting parliament. [source]PwC Worldwide Tax Summaries“The VAT rate is currently 12%. However, the government has decided to implement the 12% rate by using Other Value as Tax Base (Dasar Pengenaan Pajak/DPP Nilai Lain) of 11/12, resulting in an 'effective' VAT rate of 11% for most taxable goods and services.”View source · accessed 2026-09-18

Capital gains tax

2.5% (as of 2026)^ⓘPwC Worldwide Tax Summaries“A transfer of land and building will give rise to income tax on the deemed gain on the transfer/sale to be charged to the transferor/seller. The tax is set at 2.5% of the gross transfer value (tax base).”View source · accessed 2026-09-18 — Indonesia has no general standalone capital gains tax for individuals, but transfers of land and buildings trigger a final income tax of 2.5 percent on the gross transfer value, charged to the seller. This is the closest equivalent PwC documents to a capital gains tax on real estate for individuals.

Non resident withholding tax

20% (as of 2026)^ⓘPwC Worldwide Tax Summaries“Non-resident individuals are subject to a general withholding tax (WHT) at 20% in respect of their Indonesian-sourced income.”View source · accessed 2026-09-18 — Non-resident individuals are generally subject to a flat 20 percent withholding tax on their Indonesia-sourced income instead of the progressive resident scale. This rate can be reduced where an applicable tax treaty provides for a lower rate.

Bphtb land building acquisition duty

5% (as of 2026)^ⓘPwC Worldwide Tax Summaries“In a land and building transfer, the acquirer is liable for duty on the acquisition of land and building rights (Bea Pengalihan Hak atas Tanah dan Bangunan or BPHTB) at a maximum of 5% of the relevant Tax Object Acquisition Value (Nilai Perolehan Objek Pajak), minus an allowable non-taxable threshold.”View source · accessed 2026-09-18 — Alongside the seller's 2.5 percent final tax on land and building transfers, the buyer separately owes BPHTB (Bea Pengalihan Hak atas Tanah dan Bangunan), a duty of up to 5 percent of the Tax Object Acquisition Value after subtracting a non-taxable threshold. Together these are the two taxes individuals commonly pay on Indonesian real estate transactions.

Pit income brackets

5–35% (as of 2026)^ⓘPwC Worldwide Tax Summaries“Up to IDR 60 million: 5%, above IDR 60 million up to IDR 250 million: 15%, above IDR 250 million up to IDR 500 million: 25%, above IDR 500 million up to IDR 5 billion: 30%, above IDR 5 billion: 35%”View source · accessed 2026-09-18 — Indonesia applies a five-bracket progressive scale to resident individuals' taxable income, from 5 percent on the first IDR 60 million up to 35 percent on amounts above IDR 5 billion. The 35 percent top bracket sits above the older 5/15/25/30 percent structure.

Special tax regimes in Indonesia

4 years (as of 2026)^ⓘPwC Worldwide Tax Summaries“foreigners who have become domestic tax subjects by reason of becoming tax resident in Indonesia can be taxed only on Indonesian-sourced income (including if paid offshore) if they meet certain skill requirements. This will only be available for the first four years they become tax resident.”View source · accessed 2026-09-18 — Indonesia gives qualifying skilled foreign workers who newly become tax residents the option to be taxed only on their Indonesian-sourced income, including income paid from offshore, instead of their full worldwide income. This facility only lasts for the first four years after they become a tax resident, after which normal worldwide taxation applies.

Second home visa

Indonesia's Second Home Visa, launched in October 2022, lets qualifying foreign nationals or former Indonesian citizens stay for 5 or 10 years if they place a financial guarantee of at least IDR 2 billion (roughly USD 130,000) in an account in their own or a sponsor's name. It targets wealthy long-stay residents and investors rather than employees, and holders are barred from taking up formal employment in Indonesia. [source]Direktorat Jenderal Imigrasi (Indonesian Directorate General of Immigration)“Proof of Fund berupa rekening milik orang asing atau Penjamin dengan nilai sekurang-kurangnya Rp2.000.000.000,00 (dua milyar rupiah) atau setara”View source · accessed 2026-09-18

Digital nomad visa in Indonesia

E33G Visa Rumah Kedua Pekerja Jarak Jauh (Second Home Remote Worker Visa, commonly called the E33G Remote Worker Visa) (as of 2026)^ⓘDirektorat Jenderal Imigrasi (Indonesian Directorate General of Immigration)“E33G Visa Rumah Kedua Pekerja Jarak Jauh”View source · accessed 2026-09-18 — Indonesia does have an officially named visa product for remote workers, the E33G, issued through the Directorate General of Immigration's e-visa portal for people who work remotely for a foreign employer or foreign clients while living in Indonesia. It is a distinct, narrower category from the general Second Home Visa aimed at wealthy long-stay foreigners, so it is more accurate to call it a dedicated remote-worker visa than a broad American-style digital-nomad visa.

Nomad visa tax treatment

Holding the E33G remote worker visa or the Second Home Visa does not by itself make someone an Indonesian tax resident. Residency is decided under the same general test that applies to everyone physically present in the country, more than 183 days in any 12-month period, or presence during a tax year combined with an intention to reside, so a remote worker who stays under that threshold without such intent can remain a non-resident for Indonesian tax purposes even while lawfully present on the visa. [source]PwC Worldwide Tax Summaries“Is present in Indonesia for more than 183 days in any 12-month period.”View source · accessed 2026-09-18

Nomad visa income requirement

To qualify for the E33G remote worker visa, applicants must show bank records evidencing income of at least USD 60,000 per year from an employer or clients based outside Indonesia, plus three months of bank statements showing at least USD 2,000 available for living costs while in Indonesia. This is separate from, and much lower than, the IDR 2 billion deposit required for the general high-net-worth Second Home Visa. [source]Direktorat Jenderal Imigrasi (Indonesian Directorate General of Immigration)“Rekening bank yang membuktikan penghasilan berupa gaji atau penghasilan senilai paling sedikit US$60.000 per tahun”View source · accessed 2026-09-18

Nomad visa duration

The E33G remote worker visa permits a stay of one year in Indonesia at a time. The resulting residence permit is renewable and can even be converted into another type of residence permit, and unlike many other KITAS categories it does not require an Indonesian sponsor or guarantor. [source]Direktorat Jenderal Imigrasi (Indonesian Directorate General of Immigration)“Anda dapat tinggal di Indonesia selama 1 tahun.”View source · accessed 2026-09-18

Frequently asked questions

Sources

• Direktorat Jenderal Imigrasi (Indonesian Directorate General of Immigration) daftar visa indonesia / E33G · other, accessed 2026-09-18
• PwC Worldwide Tax Summaries individual / taxes on personal income · big4, accessed 2026-09-18
• PwC Worldwide Tax Summaries individual / residence · big4, accessed 2026-09-18
• PwC Worldwide Tax Summaries corporate / other taxes · big4, accessed 2026-09-18
• PwC Worldwide Tax Summaries individual / other taxes · big4, accessed 2026-09-18
• Direktorat Jenderal Imigrasi (Indonesian Directorate General of Immigration) 25 / siaran pers ditjen imigrasi resmi luncurkan aturan second home visa · other, accessed 2026-09-18
• Direktorat Jenderal Imigrasi (Indonesian Directorate General of Immigration, eVisa portal) faq / b6469147 09ae 44c0 878e 74e2c4c2c14e · other, accessed 2026-09-18

Explore more

• Not sure you count as resident? Am I a tax resident of Indonesia?
• Working remotely? Digital nomad taxes in Indonesia — the visa, when you become tax resident, and your effective rate.
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• Planning your days in Indonesia? Track them with the free 183 Days residency tracker — it checks your travel log against verified thresholds like the ones on this page.

When to talk to an advisor

This page maps Indonesia’s general rules — it cannot weigh your treaty position, your family and asset ties, or the timing of a move. If meaningful money depends on the answer, have a qualified advisor in Indonesia (and in your home country) review your situation before you act.