The Personal Tax Card (NPWP) is an essential document for both individuals and business entities that are tax residents in Indonesia. It allows for the regulation of income tax by the Indonesian government and is used in personal and corporate income tax declarations.
We can consider the Personal NPWP Card as important as the Identity Card (KTP). NPWP must be owned by people who have fulfilled certain requirements, including expatriates who live in Indonesia.
Additionally, if you are an expat and planning to live or work in Indonesia, it is mandatory for you to register for an NPWP.
Thresholds based on the update on 31 July, 2024:
Taxable Annual Income | Personal Income Tax Rate (Rp) |
|---|---|
Rp 1-60 million | 5% |
Portion of income between Rp 60-250 million | 15% |
Portion of income between Rp 250 million-500 million | 25% |
Portion of income over Rp 500 million to Rp 5 billion | 30% |
Above RP 5 billion | 35% |
Important Notes: An extra 20% is levied on people who do not have a tax number (NPWP) on top of progressive income tax rates above. Register your NPWP now!
According to the Personal Income Tax Law, income must be defined as any increase in economic capacity. It can consist of, among others, employment income, and personal investment income. Income includes:
*Important Note: Progessive rate will be calculated end of the year, but starting from 2023, based on PP NO. 58 , year 2023, the government implemented additional regulation for incoming tax ( Average Effective Rate/ TER
Corporate NPWP Registration
Established in 2016, LMI Consultancy has been supporting countless individuals in understanding the intricacies of visas, business setup, tax & accounting, and property investment in Indonesia, providing a comprehensive and dependable service.
We take pride in being an ethical and innovative company that places a strong emphasis on exceptional customer service and strives to set a new standard in our industry, guaranteeing a smooth and encouraging experience for our clients.
Failure to pay taxes will result in criminal penalties and fines according to pph21.
There are some progressive tax obligations that regulate the amount of tax according to your income. You can contact our tax consultant for more information regarding your tax compliance.
Expatriates and non-citizens of Indonesia are obligated to pay tax only if they have been staying in Indonesia for more than 183 days. This commonly applies to KITAS and KITAP holders who plan to stay permanently, work, or conduct a commercial business in Indonesia.
Disclaimer : Our services in LMI Consultancy provide consulting services focused on ensuring client compliance with applicable immigration and legal regulations in Indonesia. We do not provide or facilitate the production of official government documents, nor do we offer any expedited or preferential access to government services.
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