What are the new government tax regulations in Indonesia?

Article author
Fabi Lopez
  • Updated

Starting January 1, 2024, the new tax regulation GR-58 introduced changes to the income tax withholding rates for individuals across various income categories. These regulations are relevant for anyone in Indonesia who earns income from work, services, or other activities.

For a general idea of how the tax rates might impact your income category, consult the table below.

Tax rate categories per income level

The rate is determined by various factors including marital status, number of dependents, and income bracket. Please refer to the tables on pages 7, 8, and 9 of this document (available in Indonesian only) for further information on how the tax rates might impact your income. For tax advice, we recommend seeking professional assistance. 

Potential fluctuations, tax overpayments and underpayments

  • Some employees might experience a tax increase or decrease due to changes in their salary throughout the year. These changes can result from receiving additional compensation, like bonuses or raises. 
  • Newly hired employees who did not work the entire year of 2023 may be particularly impacted due to the lower Total Annual Income for the year 2023.
  • Tax calculations are based on monthly income from January to November. Any outstanding tax deductions for the year will be reconciled in December.

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