Corporate Tax
Indonesian firms are subject to corporate tax on all sources income regardless of where the
income is derived. Foreign companies shall be considered taxable in Indonesia if they have a
presence and conduct business in that country. In case of branches of foreign companies, the
companies are taxed only on income derived in Indonesia. Taxable income for the companies
shall be assessable income less tax deductible expenses. It is important to note that the tax
payment paid to other countries is granted tax deduction in Indonesia.
Corporate tax rates in Indonesia are levied as follows: