From employee income tax calculations to periodic and annual return filing and Coretax migration — your business tax obligations handled accurately and on time, in full compliance with Indonesian tax law.
Credentials
Three things every business owner should understand before a tax deadline arrives. Knowing which taxes apply, the right rates, and the filing calendar is the difference between a quiet year and a painful audit.
Most Indonesian businesses deal with a handful of taxes. Knowing which ones apply to your entity is the first step to staying compliant.
The progressive brackets under UU HPP, applied to annual taxable income (after PTKP). The table you'll reference every March.
| Annual taxable income | Rate |
|---|---|
| 0 – 60M | 5% |
| >60 – 250M | 15% |
| >250 – 500M | 25% |
| >500M – 5B | 30% |
| >5B | 35% |
Miss a deadline and penalties accrue automatically. These four dates cover most businesses through the year.
The same five Palu businesses, now through the tax lens — which taxes apply, the exact computations, and the compliance traps for each. This completes the three lenses: the Accounting page records the books, the Finance page reads them, and this page reports them to DJP. Follow Accounting → on any case to see the other two.
A sole-proprietor café. The simplest taxpayer: one final tax on turnover and payroll below threshold. But there’s a relief that’s often missed.
PP 55/2022: businesses with turnover ≤ Rp 4.8 B/year may use a final 0.5% rate on gross turnover instead of normal rates.
| Component | Value |
|---|---|
| Gross turnover January | Rp 32,930,000 |
| Final rate (PP 55/2022) | 0,5% |
| Final tax (nominal) | Rp 164,650 |
| Cumulative YTD turnover | Rp 32,930,000 |
| Tax remitted this month | Rp 0 |
PPh 21 is only withheld when an employee’s annual income crosses the PTKP (TK/0 = Rp 54 M/year or Rp 4.5 M/month).
| Employee | Gross/mo | Allowance | Art. 21 |
|---|---|---|---|
| Rina Marlina — Barista | Rp 4,000,000 | TK/0 | Rp 0 |
| Dedy Kurniawan — Barista | Rp 4,000,000 | TK/0 | Rp 0 |
| Pak Hasan — Owner | — | K/1 | Rp 0 |
| TOTAL ART. 21 | Rp 0 |
A PKP grocery store. Its main duty is VAT: collect on sales, pay on purchases, remit the difference. A real monthly tax cash flow.
Output VAT (collected on sales) less Input VAT (paid on purchases). A positive difference is payable and must be remitted.
| Component | Tax base | VAT 11% |
|---|---|---|
| Output VAT (sales) | Rp 27,460,000 | Rp 3,020,600 |
| Input VAT (purchases) | Rp 18,285,000 | Rp 2,011,350 |
| VAT payable (remit to DJP) | Rp 1,009,250 |
Being a PKP triggers VAT but doesn’t change its income-tax regime. Store turnover is still within the UMKM threshold.
| Obligation | Basis | Result |
|---|---|---|
| UMKM final tax 0.5% | Monthly turnover | ± Rp 137,300 |
| Store payroll PPh 21 | Below PTKP | Rp 0 |
| Periodic VAT return | Monthly | Required |
A software house with five staff paid above PTKP. Three withholding duties at once — and one easily-missed penalty risk.
As a withholding agent, CV Solusi deducts PPh 21 from salaries monthly and remits to DJP by the 10th of the following month.
| Employee | Gross/mo | Tax ID | PPh 21/mo |
|---|---|---|---|
| Arif — Director (K/2) | 18.000.000 | ✓ | 1.281.250 |
| Novia — Sr Developer (TK/0) | 11.500.000 | ✓ | 475.000 |
| Rizky — Backend (K/1) | 9.500.000 | ✓ | 188.750 |
| Dewi — UI/UX (TK/0) | 7.750.000 | None | 143.125 |
| Bagas — Junior (TK/0) | 6.000.000 | None | 60.000 |
| TOTAL | 52.750.000 | 2.148.125 |
Corporate clients withhold PPh 23 on services; CV Solusi collects VAT. Both flow separately from employee PPh 21.
| Obligation | Basis | Rate | Value |
|---|---|---|---|
| PPh 23 withheld by client | 180.000.000 | 2% | 3.600.000 |
| Output VAT (services) | 180.000.000 | 11% | 19.800.000 |
A building contractor. Construction services carry a final Article 4(2) tax, and its workforce is mixed — the most common source of PPh 21 error in this industry.
Construction services carry a final tax, withheld by the client on each progress claim. The rate depends on the contractor’s qualification.
| Component | Value |
|---|---|
| Total contract value | Rp 2,800,000,000 |
| Progress I billed (base) | Rp 840,000,000 |
| Rate — qualified contractor | 2,65% |
| PPh 4(2) withheld (FINAL) | Rp 22,260,000 |
Permanent staff, skilled workers (tukang), and daily labourers are treated differently. Assuming ‘all tukang are exempt’ is a costly trap.
| Group | Count | Status | PPh 21/mo |
|---|---|---|---|
| Permanent staff | 5 | Taxable | 3.085.000 |
| Tukang above PTKP | 7 | Taxable | 184.500 |
| Tukang below PTKP | 2 | Exempt | Rp 0 |
| Daily labourers | 15 | Exempt | Rp 0 |
| TOTAL ART. 21 | 29 | 3.269.375 |
A 20-room boarding house owned by an individual. Rental income on land/buildings carries one simple final tax — but there’s a nuance on who withholds.
Renting land and/or buildings carries a final 10% tax on gross rent (PP 34/2017), boarding rooms included.
| Component | Value |
|---|---|
| Rent received | Rp 15,450,000 |
| Final 4(2) rate — rent | 10% |
| Final tax due (FINAL) | Rp 1,545,000 |
As an individual with a business, Pak Haris files via the 1770 annual return; rent enters as final-taxed income.
| Aspect | Treatment |
|---|---|
| Return form | 1770 (individual w/ business) |
| VAT status | Residential rent — outside VAT |
| Caretaker PPh 21 | Rp 1.8M/mo < PTKP → Rp 0 |
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From employee income tax to annual returns and Coretax — your tax obligations handled completely and on time. The first consultation is free, answered within 24 hours, directly by me.
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