Scope of personal income tax - production and business income, professional income and investment income

Scope of personal income tax - production and business income, professional income and investment income | Indonesian Tax Guide 2025 (11)

tax guide Tax Guide Tax guide Indonesia Investment Indonesia investment Personal Income Tax Personal income tax 2025-01-22 09:08:24 Page view：1314

本期导读

个人所得税

征收范围-

（2）生产经营与职业收入

（3）投资收益

Chapter II Individual Income Tax

Scope of collection-
(2) Production and operation and occupational income

①Income from production and business, including income from business activities as a private entrepreneur, or income from independent, freelance or employee activities, is taxed at the personal income tax rate.

Individuals with annual income from businesses or annual total income from independent businesses of IDR 4.8 billion or more must determine their taxable income by setting up registration books in accordance with the provisions of the Personal Income Tax Law. If the annual turnover or total income is less than IDR 4.8 billion, the taxable income can be calculated using a fixed amount (estimated deemed taxable income). Any individual who intends to use a fixed amount must inform the tax office within the first 3 months of the tax year.

② Professional income

Remuneration or other remuneration paid by Indonesian companies and other organizations to resident individuals (such as lawyers, consultants, notaries, architects and other experts) who provide independent services in Indonesia as professionals, as well as remuneration paid to the following non-employment persons, shall be subject to deductible withholding tax on total income:

A. Musicians, emcees, singers, comedians, actors and directors in movies, television and advertising, film crews, photo models, male/female models, stage actors, dancers: craftsmen, painters and other artists;

B. Athletes;

C. Consultants, mentors, trainers, speakers, counselors and hosts people;

D. writers, researchers and interpreters;

E. service providers in all fields, including technology, computers and application systems, telecommunications and electronics, photography, economics and society;

F. advertising agents;

G. supervisors, project managers, members and suppliers of all departments serving the organizing committee and participants, as well as other independent workers;

H. buyers or salesmen;

I. contestants;

J. commodity vendors;

K. insurance company investigators;

L. participants in education, training and apprenticeship programs;

M. distributors of MLM or direct sales companies and other similar activities.

③ Partnership income

A partnership is an independent taxpayer, that is, profits are taxed at the partnership level, and profits distributed to partners are tax-free.

Scope of tax collection-
(3) Investment income

① Dividends

② Interest

③ Royalties refer to fees paid or payable in any manner, whether regularly or irregularly, for the following purposes:

A. Use of or right to use copyright for literary, artistic or scientific works, patents, designs or models, drawings, formulas or secret processes, trademarks, intellectual property rights, industrial property rights or similar rights in other fields;

B. Use or right to use industrial, commercial or scientific equipment or tools;

C. Acquisition of knowledge or information in the fields of science, technology, industry or commerce;

D. Obtaining additional or free assistance related to the above;

E. Use or right to use motion picture films, television broadcast films or videotapes, radio broadcast tapes;

F. Complete or partial abandonment of the use or authorization of intellectual property rights or industrial property rights or other rights mentioned above.

④ Real estate income

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