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Indonesian Corporate Tax Introduction and Guide of Indonesian Income Tax and Value Added Tax 2023

Income tax is imposed on income received by corporate taxpayers (companies and other types of legal entities) and individual taxpayers. Income tax is also imposed on income received by foreign taxpayers originating from Indonesia. In this publication, KAP Agus Ubaidillah dan Rekan (TGS AU Partners) will only discuss some of the tax obligations for limited liability companies which we consider important in doing business in Indonesia.

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Income Below 500 Million Rupiah is Not Subject to Income Tax

According to Government Regulation (GR) number 55 of 2022, income of up to 500 million rupiah received by certain taxpayers who are subject to final tax (businesses with turnover below 4.8 billion rupiah in 1 tax year and fulfill the requirements according to GR 55 of 2022), this income not subject to income tax.

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