Other BriefingsTax Transformation: Indonesia Introduces New Income Tax Regulations
Indonesia’s government has introduced Government Regulation 58 of 2023 (GR 58/2023) on new income tax deduction rates for individual taxpayers. GR 58/2023 became effective on January 1, 2024.
GR 58/2023 aims to simplify the monthly withholding tax calculation to the income received by individuals. The regulation also provides the categories of taxpayer and the deduction rate for their income bracket.
Monthly income tax calculation
GR 58/2023 stipulates that the monthly withholding tax calculation for the months from January to November must now be done using an ‘effective tax rate’ (ETR). However, the annual calculation that is carried out in December is still done using the progressive income tax rate under Article 17(a) of the Income Tax Law.
The ETR is calculated based on the individual’s gross monthly income or an individual’s daily income.
Taxpayer categories
Monthly ETR
There are three categories of taxpayers.
Category A
- Single with no dependent (S/0);
- Single with one dependent (S/1); and
- Married with no dependent (M/0).
Category B
- Single with two dependents (S/2);
- Single with three dependents (S/3);
- Married with one dependent (M/1); and
- Married with two dependents (M/2).
Category C
Married with three dependents (M/3).
Daily ETR
This ETR is applied to non-permanent employees who are paid on a daily/weekly/unit/piece rate basis.
- Zero percent income tax rate for a daily income of up to 450,000 rupiah (US$28.79); and
- 0.5 percent tax rate for daily income above 450,000 rupiah (US$28.79) and up to 2.5 million (US$159) rupiah.
|
Category A |
|
|
Monthly gross income (IDR) |
ETR (%) |
|
Up to 5.4 million (US$345) |
0 |
|
> 5.4 million (US$345) – 5.65 million (US$361) |
0.25 |
|
> 5.65 million (US$361) – 5.95 million (US$380) |
0.5 |
|
> 5.95 million (US$380) – 6.3 million (US$403) |
0.75 |
|
> 6.3 million (US$403) – 6.75 million (US$431) |
1 |
|
> 6.75 million (US$431) – 7.5 million (US$479) |
1.25 |
|
> 7.5 million (US$479) – 8.55 million (US$547) |
1.5 |
|
> 8.55 million (US$547) – 9.65 million (US$617) |
1.75 |
|
> 9.65 million (US$617) – 10.050 million (US$643) |
2 |
|
> 10.050 million (US$643) – 10.35 million (US$662) |
2.25 |
|
> 10.35 million (US$662) – 10.7 million (US$684) |
2.5 |
|
> 10.7 million (US$684) – 11.050 million (US$707) |
3 |
|
> 11.050 million (US$707) – 11.6 million (US$742) |
3.5 |
|
> 11.6 million (US$742) – 12.5 million (US$800) |
4 |
|
> 12.5 million (US$800) – 13.75 million (US$880) |
5 |
|
> 13.75 million (US$880) – 15.1 million (US$966) |
6 |
|
> 15.1 million (US$966) – 16.95 million (US$1,085) |
7 |
|
> 16.95 million (US$1,085) – 19.75 million (US$1,264) |
8 |
|
> 19.75 million (US$1,264) – 24.15 million (US$1,542) |
9 |
|
> 24.15 million (US$1,542) – 26.45 million (US$1,693) |
10 |
|
> 26.45 million (US$1,693) – 28 million (US$1,791) |
11 |
|
> 28 million (US$1,791) – 30.050 million (US$1,923) |
12 |
|
> 30.050 million (US$1,923) – 32.4 million (US$2,073) |
13 |
|
> 32.4 million (US$2,073) – 35.4 million (US$2,265) |
14 |
|
> 35.4 million (US$2,265) – 39.1 million (US$2,500) |
15 |
|
> 39.1 million (US$2,500) – 43.85 million (US$2,803) |
16 |
|
> 43.85 million (US$2,803) – 47.8 million (US$3,057) |
17 |
|
> 47.8 million (US$3,057) – 51.4 million (US$3,287) |
18 |
|
> 51.4 million (US$3,287) – 56.3 million (US$3,601) |
19 |
|
> 56.3 million (US$3,601) – 62.2 million (US$3,980) |
20 |
|
> 62.2 million (US$3,980) – 68.6 million (US$4,390) |
21 |
|
> 68.6 million (US$4,390) – 77.5 million (US$4,958) |
22 |
|
> 77.5 million (US$4,958) – 89 million (US$5,695) |
23 |
|
> 89 million (US$5,695) – 103 million (US$6,590) |
24 |
|
> 103 million (US$6,590) – 125 million (US$7,997) |
25 |
|
> 125 million (US$7,997) – 157 million (US$10,044) |
26 |
|
> 157 million (US$10,044) – 206 million (US$13,179) |
27 |
|
> 206 million (US$13,179) – 337 million (US$21,561) |
28 |
|
> 337 million (US$21,561) – 454 million (US$29,046) |
29 |
|
> 454 million (US$29,046) – 550 million (US$35,182) |
30 |
|
> 550 million (US$35,182) – 695 million (US$44,457) |
31 |
|
> 695 million (US$44,457) – 910 million (US$58,214) |
32 |
|
> 910 million (US$58,214) – 1.4 billion (US$89,560) |
33 |
|
> 1.4 billion (US$89,560) |
34 |
|
Category B |
|
|
Monthly gross income (IDR) |
ETR (%) |
|
Up to 6.2 million (US$396) |
0 |
|
> Up to 6.2 million (US$396) – 6.5 million (US$415) |
0.25 |
|
> 6.5 million (US$415) – 6.85 million (US$438) |
0.5 |
|
> 6.85 million (US$438) – 7.3 million (US$467) |
0.75 |
|
> 7.3 million (US$467) – 9.2 million (US$588) |
1 |
|
> 9.2 million (US$588) – 10.75 million (US$687) |
1.5 |
|
> 10.75 million (US$687) – 11.25 million (US$719) |
2 |
|
> 11.25 million (US$719) – 11.6 million (US$742) |
2.5 |
|
> 11.6 million (US$742) – 12.6 million (US$806) |
3 |
|
> 12.6 million (US$806) – 13.6 million (US$870) |
4 |
|
> 13.6 million (US$870) – 14.95 million (US$956) |
5 |
|
> 14.95 million (US$956) – 16.4 million (US$1,049) |
6 |
|
> 11.050 million (US$707) – 11.6 million (US$742) |
7 |
|
> 16.4 million (US$1,049) – 18.45 million (US$1,180) |
8 |
|
> 18.45 million (US$1,180) – 21.85 million (US$1,398) |
9 |
|
> 21.85 million (US$1,398) – 26 million (US$1,666) |
10 |
|
> 26 million (US$1,666) – 27.7 million (US$1,771) |
11 |
|
> 27.7 million (US$1,771) – 29.35 million (US$1,877) |
12 |
|
> 29.35 million (US$1,877) – 31.45 million (US$2,011) |
13 |
|
> 31.45 million (US$2,011) – 33.95 million (US$2,171) |
14 |
|
> 33.95 million (US$2,171) – 37.1 million (US$2,373) |
15 |
|
> 37.1 million (US$2,373) – 41.1 million (US$2,628) |
16 |
|
> 41.1 million (US$2,628) – 45.8 million (US$2,930) |
17 |
|
> 45.8 million (US$2,930) – 49.5 million (US$3,166) |
18 |
|
> 49.5 million (US$3,166) – 53.8 million (US$3,442) |
19 |
|
> 53.8 million (US$3,442) – 58.5 million (US$3,742) |
20 |
|
> 58.5 million (US$3,742) – 64 million (US$4,093) |
21 |
|
> 64 million (US$4,093) – 71 million (US$4,541) |
22 |
|
> 71 million (US$4,541) – 80 million (US$5,117) |
23 |
|
> 80 million (US$5,117) – 93 million (US$5,949) |
24 |
|
> 93 million (US$5,949) – 109 million (US$6,971) |
25 |
|
> 109 million (US$6,971) – 129 million (US$8,251) |
26 |
|
> 129 million (US$8,251) – 163 million (US$10,425) |
27 |
|
> 163 million (US$10,425) – 211 million (US$13,495) |
28 |
|
> 211 million (US$13,495) – 374 million (US$23,926) |
29 |
|
> 374 million (US$23,926) – 459 million (US$29,364) |
30 |
|
> 459 million (US$29,364) – 555 million (US$35,496) |
31 |
|
> 555 million (US$35,496) – 704 million (US$45,026) |
32 |
|
> 704 million (US$45,026) – 957 million (US$61,212) |
33 |
|
> 1.405 billion (US$89,919) |
34 |
|
Category C |
|
|
Monthly gross income (IDR) |
ETR (%) |
|
Up to 6.6 million (US$396) |
0 |
|
> Up to 6.6 million (US$396) – 6.95 million (US$444) |
0.25 |
|
> 6.95 million (US$444) – 7.35 million (US$470) |
0.5 |
|
> 7.35 million (US$470) – 7.8 million (US$498) |
0.75 |
|
> 7.8 million (US$498) – 8.85 million (US$566) |
1 |
|
> 8.85 million (US$566) – 9.8 million (US$626) |
1.25 |
|
> 9.8 million (US$626) – 10.95 million (US$700) |
1.5 |
|
> 10.95 million (US$700) – 11.2 million (US$716) |
1.75 |
|
> 11.2 million (US$716) – 12.050 million (US$770) |
2 |
|
> 12.050 million (US$770) – 12.950 million (US$828) |
3 |
|
> 12.950 million (US$828) – 14.15 million (US$904) |
4 |
|
> 14.15 million (US$904) – 15.55 million (US$994) |
5 |
|
> 15.55 million (US$994) – 17.050 million (US$1,090) |
6 |
|
> 17.050 million (US$1,090) – 19.5 million (US$1,247) |
7 |
|
> 19.5 million (US$1,247) – 22.7 million (US$1,452) |
8 |
|
> 22.7 million (US$1,452) – 26.6 million (US$1,702) |
9 |
|
> 26.6 million (US$1,702) – 28.1 million (US$1,797) |
10 |
|
> 28.1 million (US$1,797) – 30.1 million (US$1,925) |
11 |
|
> 30.1 million (US$1,925) – 32.6 million (US$2,085) |
12 |
|
> 32.6 million (US$2,085) – 35.4 million (US$2,264) |
13 |
|
> 35.4 million (US$2,264) – 38.9 million (US$2,488) |
14 |
|
> 38.9 million (US$2,488) – 43 million (US$2,752) |
15 |
|
> 43 million (US$2,752) – 47.4 million (US$3,036) |
16 |
|
> 47.4 million (US$3,036) – 51.2 million (US$3,279) |
17 |
|
> 51.2 million (US$3,279) – 55.8 million (US$3,574) |
18 |
|
> 55.8 million (US$3,574) – 60.4 million (US$3,868) |
19 |
|
> 60.4 million (US$3,868) – 66.7 million (US$4,272) |
20 |
|
> 66.7 million (US$4,272) – 74.5 million (US$4,771) |
21 |
|
> 74.5 million (US$4,771) – 83.2 million (US$5,327) |
22 |
|
> 83.2 million (US$5,327) – 95.6 million (US$6,121) |
23 |
|
> 95.6 million (US$6,121) – 110 million (US$7,045) |
24 |
|
> 110 million (US$7,045) – 134 million (US$8,582) |
25 |
|
> 134 million (US$8,582) – 169 million (US$10,824) |
26 |
|
> 169 million (US$10,824)– 221 million (US$14,156) |
27 |
|
> 221 million (US$14,156) – 390 million (US$24,981) |
28 |
|
> 390 million (US$24,981) – 463 million (US$29,660) |
29 |
|
> 463 million (US$29,660) – 561 million (US$35,921) |
30 |
|
> 561 million (US$35,921) – 709 million (US$45,398) |
31 |
|
> 709 million (US$45,398) – 965 million (US$61,794) |
32 |
|
> 965 million (US$61,794) – 1.405 billion (US$89,919) |
33 |
|
> 1.405 billion (US$89,919) |
34 |
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