The relevant fundamental taxation laws of Indonesia include, sorted by enactment: Indonesian Taxation law provides the following definitions to clarify whom exactly is obligated to pay tax: Individuals or statutory bodies which meet relevant criteria stipulated, including certain tax collectors or withholders.
Statutory bodies are defined by Indonesian Taxation Law as groups of persons and/or capital which constitutes a unit.
Companies are subject to Value-Added Tax, pursuant to Law of 1984 and all amendments, excluding the few small-scale businesses whose criteria are stipulated by the Minister of Finance.
Tax Credits for over-taxation or overpayment is withheld until the subsequent year- as payouts are not issued within the same financial year.
Independent works/jobs shall be jobs executed by individuals having special expertise in a bid to earn income not bound by certain working relations.
Income taxation is subject to provincial (Provinsi) government regulations defined by the economic realities of that particular area.
For example, the most urbanised and industrialised region, DKI Jakarta (Special Administrative Region of Greater Municipality of Jakarta), income taxation commences with salaries greater than one million Rupiah (IDR) per calendar month, at a rate of 10%, which slides progressively to 40%.
Companies that put a minimum of 40% of their shares to the public and are listed in the Indonesia Stock Exchange offer are taxed on 20%.
Companies that have a gross turnover below 50 Billion (IDR) have a discount on 50% from the standard corporate income tax, in other words 12.5%.
From the Finance Ministry regulations, companies with gross turnover under 4.8 Billion (IDR) is only 0.5% of the total revenue (in this case not on the profit) since July 2018 (to be paid monthly).
This calculated value has the caveat of being a legally non-negotiable purchase price if the Government wishes to procure said land.
Land Tax calculations are considered a highly specialised skill- most especially as the punishments and sanctions for false reportage are very severe and indeed costly.
Petroleum is taxed at a rate of approximately 25% – though remains cheaper than neighbouring developed nations such as Australia or Singapore.
As one of the non-trade fiscal instrument, the carbon tax is aimed to change behaviour, supporting emission decrease and encourage investment and innovation.
Carbon tax is imposed with the principle of just and affordable, based on global and national business climate.