Indonesia Corporate Income Tax (Pajak Penghasilan Badan)
Indonesia Corporate Income Tax (Pajak Penghasilan Badan) is 22 percent, in force since 1 Jan 2020. Last checked against the official source on 31 Jul 2026.
Standard headline corporate income tax rate on the taxable profits of resident corporate taxpayers and permanent establishments.
| Current value | 22 percent |
|---|---|
| In force from | 2020-01-01 |
| Official source | Two instruments, one continuous rate. Perpu 1/2020 (enacted as UU 2/2020), Pasal 5, reduced the corporate rate from 25% to 22% for Tax Year 2020 and Tax Year 2021 and scheduled 20% from Tax Year 2022; Undang-Undang No. 7 Tahun 2021 (UU HPP), amending Pasal 17 ayat (1) huruf b UU PPh, cancelled that second step and fixed the rate at 22% from Tax Year 2022 onward. The rate has therefore been 22% without interruption since Tax Year 2020, which is what effective_from records. |
| Last verified | 2026-07-31 |
| Verification | primary — No verification limitation recorded — read from the official source cited. |
| Provenance | source fingerprint |
What this value means
Flat 22%, in force CONTINUOUSLY SINCE TAX YEAR 2020 and re-confirmed unchanged for tax year 2026. READ THE DATE CAREFULLY: the legal basis changed at the end of 2021 but the rate did not. The 22% applied to tax years 2020 and 2021 under Perpu 1/2020 (UU 2/2020) Pasal 5, and applies from tax year 2022 under UU HPP. A source that dates the 22% to 2022 is describing when the CURRENT instrument took over, not when the rate took effect - we made exactly that error ourselves until 2026-07-31. HISTORY OF THE CANCELLED CUT: Perpu 1/2020 (later UU 2/2020, the COVID-19 emergency law) had reduced the rate from 25% to 22% for tax years 2020-2021 and scheduled a further cut to 20% from tax year 2022. UU HPP CANCELLED that second step and permanently fixed the rate at 22%. Anyone working from pre-2022 sources will wrongly show 20% — this is the single most common error on Indonesian corporate tax. RELIEFS AND VARIANTS, none of which change the served headline rate: (a) Pasal 31E UU PPh grants a 50% rate reduction (effective 11%) on the portion of taxable income attributable to gross turnover up to IDR 4.8 billion, for taxpayers with annual gross turnover up to IDR 50 billion; (b) publicly listed companies meeting a >=40% free-float and other conditions receive a 3 percentage point reduction, to 19%; (c) certain MSMEs with turnover up to IDR 4.8 billion may instead elect the final PPh regime under PP 55/2022 at 0.5% of gross turnover, time-limited by entity type; (d) an alternative minimum tax was proposed during the HPP debates but was NOT enacted. Indonesia has implemented the OECD Pillar Two GloBE 15% global minimum tax for in-scope multinational groups (consolidated revenue >= EUR 750 million) via PMK 136/2024, applying from fiscal years beginning on or after 1 January 2025 — this is a top-up regime and does not alter the 22% domestic rate, but it is material for large groups. Standard tax year is the calendar year unless a different bookkeeping year is approved.
Get it programmatically
curl https://asiaref.dev/v1/id/corporate-tax
# $0.005 per call — x402 on Base (USDC). No key, no signup.
# History: curl https://asiaref.dev/v1/id/corporate-tax/history?from=2020-01-01
# Provenance: curl https://asiaref.dev/provenance/id/corporate-taxOther Indonesia series: Policy Rate (BI-Rate) · Value Added Tax (Pajak Pertambahan Nilai, PPN) · VAT registration threshold · Minimum Wage (Upah Minimum) · Public Holidays (Hari Libur Nasional) · Consumer Price Index Inflation (Inflasi IHK) · Withholding tax rates · Statutory default interest (bunga moratoir) · Personal Income Tax (Pajak Penghasilan Orang Pribadi, PPh OP) · Statutory social-insurance contributions
The same figure elsewhere: Iraq · Israel · Japan · Jordan · Kazakhstan · all 28