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.

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