From January 2022, new progressive income tax rates come into effect in Indonesia. The changes include a new top individual income tax rate of 35% on income over IDR 5 billion, in addition to an increase in the upper threshold for the 5% rate from IDR 50 million to IDR 60 million.

The new rates, effective from January 2022, can be found in the table below:

*Indonesian Rupiah

Interested in doing business in Indonesia? Find out everything you need to know about payroll, tax, social security, employee benefits, work permits, employment law and more in activpayroll’s Guide to Doing Business in Indonesia. This is available as a free PDF to download.

By scaling, streamlining, or ensuring your people are taken care of, we bring absolute clarity to your global business.

Latest news & insights

 
August 29, 2025 | 3 minute read

The South African Revenue Service, has published the Draft Taxation Laws Amendment Bill 2025 for public...

 
August 27, 2025 | 2 minute read

The IRS has announced that it will not make changes to federal income tax withholding tables or key payroll...

 
August 25, 2025 | 2 minute read

1 January 2026, Bulgaria will become the 21st member of the euro area, marking a milestone in its financial &...

Talk to a specialist today and find out how we support the growth of over 500 businesses with a range of activpayroll solutions designed to help your global payroll and people operations succeed.