Southeast Asia · ASEAN

Indonesia

Indonesia taxes resident individuals on worldwide income at progressive 5–35% rates. A narrower PMK-18/2021 concession can temporarily limit tax to Indonesian-source income for qualifying foreign experts who meet the expertise and knowledge-transfer conditions and apply; it is not a blanket expat exemption. Long-stay access is route-specific, with current official options including the remote-worker stay permit for overseas-employed earners, employer-sponsored work VITAS/KITAS, and the Second Home route with a Rp 2 billion bank-balance requirement and no ordinary employment relationship.

Photo by Katarzyna Zygnerska on Unsplash

Suitability

•PMK-18/2021 can give qualifying foreign experts an Indonesia-source-only tax treatment for up to 4 tax years, but the concession is application-based and not available to every new resident

•Remote Worker Visa (E33G): up to 1 year for overseas-employed earners; requires an offshore employment contract and salary/income of at least US$60,000 per year; no Indonesian wages

•Second Home stay permit: up to 5 years (extendable) with personal bank funds of at least Rp 2,000,000,000; employment relationship prohibited

•Bali (Canggu/Seminyak) remains one of Asia’s best-known nomad hubs, while Jakarta works as the business and compliance anchor city

•Jakarta and Bali still offer a meaningful cost advantage versus Singapore, Hong Kong, or major Western hubs

•22% standard CIT; 19% for qualifying public companies; 0.5% final tax remains available for qualifying SMEs up to IDR 4.8B turnover

Tax

Personal Rate5–35% progressive (0% up to IDR 60,000,000; 35% above IDR 5,000,000,000)

Corporate Rate22% standard; 19% for qualifying public companies meeting the listing/free-float conditions; 0.5% final tax for qualifying SMEs up to IDR 4.8B turnover

Tax SystemResidents/default domestic tax subjects are taxed on worldwide income; PMK-18/2021 offers a 4-tax-year Indonesia-source-only treatment only for qualifying foreign experts who apply; PMK 136/2024 implements the global minimum tax framework for in-scope groups from 2025.

Pillar Two

P2: ADOPTED

If you become an Indonesian domestic tax subject, the default position is worldwide-income taxation at 5–35%. The main exception is the PMK-18/2021 regime for qualifying foreign experts who meet the expertise and knowledge-transfer conditions and successfully apply to be taxed only on Indonesian-source income for up to 4 tax years. Corporate investors still face 22% CIT as the mainstream headline, while PMK 136/2024 brings Pillar Two top-up tax rules for in-scope multinational groups.

High-volatility checks

Resident worldwide-income rule, PMK-18/2021 foreign-expert concession, and Pillar Two statusLast checked2026-04-20

Indonesia’s expat-facing tax marketing often overstates the foreign-expert concession; the real answer depends on domestic-tax-subject status, PMK-18/2021 eligibility, and whether a claim is actually about large-group Pillar Two rules instead of individual tax.

PwC Tax Summaries — Indonesia — Individual income tax·PwC Tax Summaries — Indonesia — Corporate income tax·BPK JDIH — PMK No. 18/PMK.03/2021·ASEAN Briefing — Indonesia’s Omnibus Law: New Tax Treatment to Support Ease of Doing Business·Direktorat Jenderal Pajak — PMK 136 Tahun 2024 (Global Minimum Tax)

· VERIFIED: 2026-04-20

Residency

Indonesian tax residency is not just a visa label: a foreigner can become a domestic tax subject by residing in Indonesia, by being present for more than 183 days in any 12-month period, or by being in Indonesia during a tax year with an intention to reside. Immigration permission is route-specific instead—remote-worker, work, and second-home permits all have their own conditions—and holding one of those routes does not by itself guarantee the PMK-18/2021 foreign-expert tax concession.

Residency TestROUTE & STATUS SPECIFIC

Common Routes

•Remote Worker Visa (E33G): up to 1 year; requires an overseas employment contract, salary/income of at least US$60,000 per year, and no Indonesian compensation or local sales activity
•Employer-sponsored work VITAS/KITAS: available for up to 180 days, 1 year, or 2 years; requires a Ministry of Manpower work permit and Indonesian guarantor
•Second Home stay permit: up to 5 years (extendable); requires personal bank funds of at least Rp 2,000,000,000 or equivalent; employment relationship prohibited
•Short visitor/business routes remain separate from residence status and do not replace the need for an appropriate stay permit when activities or duration change

High-volatility checks

183-day tax residency, intention-to-reside test, and route-specific stay permissionsLast checked2026-04-20

Indonesia’s tax-residency triggers and immigration routes operate on different logic, so pages should avoid collapsing E33G, work KITAS, and Second Home permissions into one universal residency badge.

Remote-worker, work, and Second Home route thresholdsLast checked2026-04-20

Official eVisa route conditions, eligible activities, durations, and funds/income thresholds can shift, so route-specific claims should be kept narrowly tied to the reviewed FAQ pages.

Direktorat Jenderal Pajak — Tax Return Reporting for Foreign Citizens in Indonesia·BPK JDIH — PMK No. 18/PMK.03/2021·Indonesia Immigration eVisa — Remote Worker Visa FAQ·Indonesia Immigration eVisa — Work Stay Visa FAQ·Indonesia Immigration eVisa — Second Home Visa FAQ

· VERIFIED: 2026-04-20

Cost

Overallbudget (Jakarta: ~USD 1,150–1,300/month excluding rent; USD 1,650–1,800 including rent)

Housingmid (Jakarta 1-bed city center: IDR 8.1M avg / USD 505; range IDR 6.5M–12.5M / USD 405–780)

Coworkingmid (Bali dedicated desk: IDR 2,300,000–3,500,000 / USD 145–220; Jakarta would be similar)

Lifestyle

ClimateTropical — hot and humid year-round; distinct wet (Nov–Mar) and dry (Apr–Oct) seasons; Bali dry season is particularly popular

TimezoneWIB (UTC+7) Western Indonesia, WITA (UTC+8) Central, WIT (UTC+9) Eastern

LanguageIndonesian (Bahasa Indonesia); English widely spoken in Bali tourist/expat areas and Jakarta business districts; limited elsewhere

InternetModerate — fibre and 4G available in urban centres; connectivity quality variable across Bali; rural areas significantly slower

Family FitModerate — good international schools in Bali and Jakarta; private healthcare adequate in major cities; infrastructure outside cities is limited

Cautions

⚠ DEFAULT RULE: If you become an Indonesian domestic tax subject, the default tax base is worldwide income; the PMK-18/2021 Indonesia-source-only treatment is a narrow, application-based concession for qualifying foreign experts rather than a general expat exemption.
⚠ TAX RESIDENCY: More than 183 days in a 12-month period is only one trigger — being in Indonesia during a tax year with an intention to reside can also make you resident, so visa planning and day-count planning should be reviewed together.
⚠ SECOND HOME: The current Second Home route requires personal bank funds of at least Rp 2,000,000,000 and prohibits work in an employment relationship.
⚠ REMOTE WORKER VISA: The current remote-worker route requires an offshore employment contract and at least US$60,000/year of salary or income, and it does not authorize Indonesian-source wages.
⚠ HIGH MARGINAL RATE: Personal income tax reaches 35% above IDR 5,000,000,000 per year.
⚠ PILLAR TWO: PMK 136/2024 targets in-scope multinational groups meeting the EUR 750,000,000 threshold; it is not a retail expat tax.

Keep researching Indonesia

Use this profile as a starting point, then confirm the relevant tax, residency, and business rules with a licensed professional before you act.