News concerning the New Untaxed Income ("PTKP")
23 September 2008, the Government of the Republic of Indonesia promulgated
Law Number 36 Year 2008 concerning the Fourth Amendment of Law Number
7 Year 1983 concerning Income Tax. This Law shall effective by 1
this Law the amount of Untaxed Income (“PTKP”) and Income tax rate
The Amount of Untaxed Income ("PTKP") is as follows:
of Untaxed Income (“PTKP”)
Amount of the new Untaxed Income per year
sum for married taxpayer
sum for a spouse which her income is aggregated with her husband’s
sum per family member related by blood and by marriage in a
straight line, and adopted children as full dependent, at maximum
new Untaxed Income (“PTKP”) scheme will be effective as of 1 January
Income tax rate is as follows:
Income tax rate for resident individual taxpayer:
to IDR 50,000,000.00
IDR 50,000,000.00 up to IDR 250,000,000.00
IDR 250,000,000.00 up to IDR 500,000,000.00
2) Income tax
rate for resident corporate taxpayers and permanent establishments
is 28% of taxable income.
resident taxpayer which is 40% of its whole paid up capital is sold
in a stock exchange in Indonesia and fulfilling other certain requirements
shall have 5% tax rate lower than 28%.
4) The highest
tax rate on dividend derived by resident individual taxpayer is
10%. The dividend tax is final in nature. Under the old law, the
highest tax rate on dividend is 35%.
tax rate on any consideration for service is 2% of gross income.
Under the old law such tax rate is 15% of estimated net income.
6) Tax rate
for taxpayers who derive gross income no more than IDR 50,000,000,000
and its taxable income no more than IDR 4,800,000,000 shall entitle
a tax facility in a form of tax rate deduction amounting to 50%
of the normal tax rate.