Indonesia Corporate Tax Calculator – Calculate CIT, SME & Micro Business Tax

  • Adam
  • November 5, 2025

Calculate Indonesia corporate income tax with our 2025 calculator. Supports 22% standard CIT, 19% public company rate, SME 50% relief (IDR 50B), micro business 0.5% final tax, depreciation, and deductions. Get instant results.

Indonesia Corporate Tax Calculator 2025

Calculate Indonesia corporate income tax instantly. This comprehensive calculator supports the 22% standard CIT rate, 19% public company rate (40% publicly traded), SME 50% relief (turnover ≤ IDR 50 billion), micro business 0.5% final tax (≤ IDR 4.8 billion), depreciation schedules, loss carryforward, and withholding taxes. Updated with the latest 2025 regulations from Indonesia's Directorate General of Taxation (DGT).

Indonesia Corporate Income Tax Calculator

Your Corporate Tax Calculation Results

Detailed Tax Breakdown

Description Amount (IDR)

Understanding Indonesia Corporate Tax System

Indonesia's corporate income tax (CIT) system is administered by the Directorate General of Taxation (DJP) under the Ministry of Finance. The standard corporate income tax rate was reduced to 22% effective 2023 under Law No. 6 of 2023. The tax system includes preferential rates for public companies, SMEs, and micro businesses, alongside various deductions, depreciation methods, and loss carryforward provisions. Understanding these regulations is essential for compliance and tax optimization.

Standard Rate: 22%

General CIT rate for most domestic and foreign companies (PT PMA, PT PMDN, permanent establishments). Applied on net taxable income after fiscal reconciliation.

Public Companies: 19%

Listed companies on Indonesia Stock Exchange (IDX) with ≥40% of paid-up shares held publicly qualify for 3% rate reduction from 22% to 19%.

SME Relief: 50% off

Gross revenue ≤ IDR 50 billion qualifies for 50% tax relief. Only 50% of taxable income is taxed at 22% rate (effective 11%).

Micro Business: 0.5%

Gross revenue ≤ IDR 4.8 billion can pay 0.5% final tax on gross turnover for up to 3 years. Simplified regime available for new companies.

Indonesia Corporate Tax Rates 2025

Indonesia offers multiple corporate tax rate structures to accommodate different business sizes and types. The rate reduction to 22% in 2023 was implemented as part of the government's tax reform to improve business competitiveness. Additional preferential rates and relief mechanisms are available for specific categories of companies, including publicly listed companies and small-to-medium enterprises.

Company Type/Category CIT Rate Eligibility Criteria Tax Base
Standard Companies 22% Most domestic (PT PMDN) and foreign (PT PMA) companies Net taxable income (fiscal profit)
Public Companies 19% Listed on IDX with ≥40% paid-up shares publicly held Net taxable income after fiscal reconciliation
SMEs (Gross Turnover Relief) 11% Effective Annual gross revenue ≤ IDR 50 billion 50% of net taxable income × 22% = 11% effective rate
Graduated SME Relief 11%-22% Blended Revenue between IDR 4.8B - IDR 50B First IDR 4.8B taxed at 11%, remainder at 22%
Micro Business (Final Tax) 0.5% Annual gross revenue ≤ IDR 4.8 billion (up to 3 years) Gross turnover (not net income)
Permanent Establishments (PEs) 22% Foreign company PE operations in Indonesia Net PE income

Important Note: The graduated SME relief applies when a company's gross revenue falls between IDR 4.8 billion and IDR 50 billion. In this case, the first IDR 4.8 billion of taxable income receives 50% relief (11% effective rate), while income above that threshold is taxed at the standard 22% rate, creating a blended effective rate.

How to Calculate Indonesia Corporate Income Tax

Step 1: Determine Accounting Profit

Basic Formula

Accounting Profit = Gross Revenue - COGS - Operating Expenses - Depreciation - Interest - Other Deductions

Step 2: Perform Fiscal Reconciliation

Fiscal reconciliation adjusts accounting profit to determine taxable income by adding back non-deductible expenses and excluding non-taxable income.

Fiscal Profit = Accounting Profit + Non-Deductible Expenses - Non-Taxable Income

Step 3: Apply Loss Carryforward

Net Taxable Income = Fiscal Profit - Loss Carryforward (Maximum 5 years)

Step 4: Calculate Corporate Income Tax

For Standard Rate (22%):

CIT = Net Taxable Income × 22%

For SME Relief (50% off for turnover ≤ IDR 50B):

CIT = (Net Taxable Income × 50%) × 22% = Net Taxable Income × 11%

For Micro Business (0.5% final tax for turnover ≤ IDR 4.8B):

CIT = Gross Revenue × 0.5% (Final tax, simplified regime)

Deductible and Non-Deductible Expenses

Indonesian tax law allows deductions for ordinary and necessary business expenses incurred to generate taxable income, subject to proper documentation. However, certain expenses are explicitly non-deductible for tax purposes, requiring add-back during fiscal reconciliation.

Expense Category Deductibility Notes
Cost of Goods Sold (COGS) Fully Deductible Direct materials, labor, manufacturing overhead
Salaries & Wages Fully Deductible Must be reasonable, documented, and comply with labor law
Rent & Lease Payments Fully Deductible Business property rental; must be at arm's length rates
Utilities & Maintenance Fully Deductible Electricity, water, repairs, cleaning
Depreciation Fully Deductible Straight-line or declining-balance methods; asset-by-asset basis
Interest on Business Debt Fully Deductible Interest on bank loans, bonds; must be at reasonable rates
Professional Services Fully Deductible Accounting, legal, consulting fees for business
Advertising & Marketing Fully Deductible Promotion, marketing campaign expenses
Travel Expenses Deductible Business travel; personal travel generally not deductible
Meals & Entertainment 50% Deductible Generally limited to 50% unless specific business meal requirements
Government Fines & Penalties NOT Deductible Tax penalties, traffic fines, administrative fines
Corporate Income Tax (CIT) NOT Deductible CIT itself cannot be deducted as business expense
Personal Expenses NOT Deductible Owner's personal living expenses, medical, personal transport
Donations to Political Parties NOT Deductible Political contributions explicitly disallowed
Provisions & Reserves Limited/Conditional Only specific, documented provisions allowed (e.g., bad debt provisions up to 5% of receivables)

Depreciation Methods in Indonesia

Indonesia allows two depreciation methods: straight-line (linear) and declining-balance (double declining). Once a method is chosen for an asset, it must be applied consistently. Depreciation periods vary by asset class, ranging from 4 years to 20+ years.

Asset Category Useful Life Straight-Line Rate Declining-Balance Rate
Non-Building Property
Category 1 (Equipment, tools) 4 years 25% 50%
Category 2 (Machinery, vehicles) 8 years 12.5% 25%
Category 3 (Furniture, fixtures) 16 years 6.25% 12.5%
Category 4 (Infrastructure) 20 years 5% 10%
Buildings
Permanent Building 20 years 5% Not applicable
Non-Permanent Building 10 years 10% Not applicable
Intangible Assets
Patents, Trademarks (>20 years useful life) 20 years or actual useful life 5% or 1/useful life Not applicable

Tax Loss Carryforward & Tax Credits

Companies experiencing net operating losses can carry forward losses to offset taxable income in future years for a maximum of five (5) consecutive years. Losses cannot be carried backward. Additionally, Indonesia offers various tax credits and incentives for specific industries and regions.

Loss Carryforward Rules

  • Carryforward Period: 5 consecutive years from the year following the loss
  • No Carryback: Losses cannot be carried back to prior years
  • Limitation: Annual deduction limited to available losses; cannot exceed actual loss in any year
  • Ownership Change Impact: Significant ownership changes (>50%) may trigger loss restriction under anti-abuse provisions
  • Documentation: Losses must be documented and reported in annual tax return

Withholding Taxes (Withholding on Payments)

Companies making certain payments must withhold income tax before disbursing funds to recipients. These withholding taxes are credited against the recipient's annual income tax liability or refunded if excess.

Payment Type Withholding Tax Rate Taxpayer Type
Dividends 10% Domestic shareholders (reduced by treaty for foreign)
Interest Income 15-20% Lenders (varies; may be reduced by treaty)
Royalties 15% Intellectual property licensors
Services by Foreigners 20% Foreign service providers
Technical Fees 15% Technical service providers
Management Fees 15-20% Management/administrative service fees

Filing and Payment Deadlines

Indonesian companies must follow strict filing and payment deadlines. The fiscal year runs from January 1 to December 31 (calendar year). Corporate income tax payments and annual tax returns must be filed by specific deadlines, with penalties for late filing or payment.

  • Annual Tax Return Filing: By end of 4th month following fiscal year-end (April 30 for calendar year companies)
  • Extension: Maximum 2-month extension available with written request to DGT before original deadline
  • CIT Payment: Must be paid by end of 4th month after fiscal year-end (generally April 30)
  • Installment Payments: Large companies may be required to make monthly installment payments throughout the year
  • Penalties: 2% per month (max 24%) for late payment; administrative penalties for late filing

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Frequently Asked Questions (FAQs)

What is the current corporate income tax rate in Indonesia?
The general corporate income tax rate in Indonesia is 22% as of 2023 (reduced from 25% under Law No. 6 of 2023). This applies to standard domestic (PT PMDN) and foreign (PT PMA) companies. Preferential rates of 19% apply to public companies with ≥40% public shareholding, and special rates apply to SMEs and micro businesses.
Do I qualify for SME tax relief?
You qualify for SME tax relief (50% relief on taxable income, effective 11%) if your annual gross revenue is ≤ IDR 50 billion. For graduated relief, if revenue is between IDR 4.8 billion and IDR 50 billion, the first IDR 4.8 billion of taxable income receives 50% relief (11% rate), while amounts above that are taxed at 22%. Micro businesses with turnover ≤ IDR 4.8 billion can opt for 0.5% final tax on gross revenue.
What is fiscal reconciliation and why is it important?
Fiscal reconciliation is the process of adjusting accounting profit to determine taxable income for Indonesian tax purposes. It involves adding back non-deductible expenses (fines, personal expenses, disallowed provisions) and subtracting non-taxable income (donations, inheritances). This reconciliation is required because accounting profit and taxable income often differ under Indonesian tax law. Proper reconciliation is essential for accurate tax calculation and compliance.
What depreciation methods are allowed in Indonesia?
Indonesia allows two depreciation methods: straight-line (linear) and declining-balance (double declining). Once chosen for an asset, the method must be applied consistently. Depreciation periods vary by asset class: 4 years for equipment (Category 1), 8 years for machinery (Category 2), 16 years for furniture (Category 3), and 20 years for infrastructure (Category 4). Buildings have their own schedules: 20 years for permanent, 10 years for non-permanent.
Can I carry forward tax losses?
Yes, net operating losses can be carried forward for a maximum of 5 consecutive years to offset taxable income in future years. Losses cannot be carried backward to prior years. Documentation of losses in annual tax returns is required. Significant changes in company ownership (>50%) may trigger loss restriction provisions under anti-abuse rules.
What is the difference between a PT PMA and PT PMDN?
PT PMA (Perusahaan Penanaman Modal Asing) is a foreign investment company with foreign ownership. PT PMDN (Perusahaan Penanaman Modal Dalam Negeri) is a domestic company with Indonesian ownership. Both are taxed at the same standard CIT rate of 22%, with the same deductions and depreciation rules applying to both entities.
What expenses are NOT deductible for tax purposes?
Non-deductible expenses include: corporate income tax itself, government fines and penalties, personal living expenses, political contributions, unreasonable salaries, related-party transactions at non-arm's length prices, and certain reserves. These expenses must be added back during fiscal reconciliation. Meals and entertainment are generally only 50% deductible.
When are Indonesia corporate tax returns and payments due?
For calendar-year companies, corporate income tax returns must be filed and payments made by April 30 (end of 4th month after fiscal year-end). An extension of maximum 2 months is available with written request to the Directorate General of Taxation before the original deadline. Late filing results in penalties of 2% monthly (max 24%), plus administrative penalties.
What is the micro business 0.5% final tax regime?
Micro businesses with annual gross revenue ≤ IDR 4.8 billion can opt for the 0.5% final tax regime under Government Regulation No. 55/2022. Instead of calculating normal corporate income tax, these businesses pay 0.5% of gross turnover as final tax. This regime is available for newly formed companies opting in within their first fiscal year and applies for up to 3 years or while criteria are met.
Are there tax incentives for specific industries or regions?
Yes, Indonesia offers various tax incentives for certain sectors and regions, including tourism, manufacturing, agriculture, mining, and renewable energy. Special economic zones (SEZs) like Batam and Bintan offer reduced CIT rates. Additionally, research and development activities may qualify for accelerated depreciation. Companies should consult tax authorities or professionals to determine eligibility for specific incentives.

Official Sources and References

Disclaimer: This calculator provides estimates based on current Indonesia corporate tax regulations as of 2025 (Law No. 6 of 2023). Tax rates, deductions, depreciation methods, and eligibility criteria are subject to change with new legislation. Special rates and incentives apply to specific industries, regions, and entities. For accurate tax compliance and planning, consult qualified Indonesian tax professionals, CPAs, or the Directorate General of Taxation (DGT).

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