Indonesia

Indonesia uses a progressive income tax system (PPh 21) with five brackets: 5% on income up to IDR 60,000,000, 15% to IDR 250,000,000, 25% to IDR 500,000,000, 30% to IDR 5,000,000,000, and 35% above that. A non-taxable income (PTKP) of IDR 54,000,000 per year plus IDR 4,500,000 per dependent applies. Social security includes BPJS Ketenagakerjaan (employment: old age savings 2% employee / 3.7% employer, work accident, death, pension 1% / 2%) and BPJS Kesehatan (health insurance: 1% employee / 4% employer). Total employee contributions are approximately 4% of salary. Indonesia offers limited tax deductions for employees beyond the PTKP and social insurance contributions. Occupational pension contributions may be deductible. VAT is 11% (increasing to 12%). The corporate tax rate is 22%. Expatriates who become tax residents (183+ days) are taxed on worldwide income. The government has proposed tax incentives for foreign workers in the new capital (IKN Nusantara).