Capital Gains Tax in Indonesia: Rates and Rules for Foreign Investors

Capital gains tax in Indonesia depends on the asset being sold, the seller’s tax residency, and the rules governing the transaction. There is no single capital gains tax rate for every investment. A sale of listed shares generally attracts 0.1% final income tax on gross proceeds, while a qualifying private-share sale by a nonresident may attract an effective 5% final tax on the selling price.

For foreign investors, the distinction matters when selling shares in a PT PMA, disposing of Indonesian property, or preparing a company exit. The person selling the investment may face a different tax calculation from the Indonesian company that owns the underlying assets.

How Capital Gains Tax Works in Indonesia

Indonesia generally treats gains from selling or transferring assets as taxable income. Article 4 of the Income Tax Law includes gains from asset disposals within the scope of income subject to taxation.

Law No. 7 of 2021 on Tax Harmonization amended the Income Tax Law and introduced changes to the ordinary income tax rates from the 2022 tax year.

Specific provisions determine how Indonesia taxes transactions involving listed shares, private-company shares, land, buildings, and crypto assets.

Before calculating tax, identify the asset’s legal owner. A shareholder selling an investment and a company selling one of its assets are separate taxpayers.

Ordinary Income Tax on Net Gains

Under the ordinary income tax regime, the taxable gain generally reflects the proceeds from disposal less the relevant tax basis and allowable adjustments.

For a company, the calculation may involve the asset’s remaining tax book value. The resulting taxable gain enters its wider corporate income tax calculation.

An individual selling private-company shares may also face ordinary income tax, although the result depends on residency, available deductions, and the seller’s other taxable income.

Final Income Tax on Gross Transaction Value

Indonesia applies final income tax to certain asset transfers using a prescribed transaction value rather than the seller’s actual profit.

Listed-share sales and qualifying land transfers are examples. The relevant tax can arise even when the seller receives less than the original acquisition price.

For that reason, investors need to distinguish their commercial return from the amount used to calculate Indonesian tax.

Final Tax and Withholding Tax Mean Different Things

The term “final tax” describes how Indonesia settles the income tax obligation on income covered by a final-tax provision.

Withholding describes the collection process. An Indonesian buyer, broker, or another designated party may have to deduct or collect the tax and remit it to the Directorate General of Taxes (DJP).

Some withholding payments are final. Others may be creditable against the taxpayer’s annual income tax liability.

The relevant provision determines the tax base, collection method, and finality. Investors should check all three before calculating the amount payable.

Capital Gains Tax Rates in Indonesia by Asset Class

The table below compares common investment disposals. It provides a starting point for identifying the applicable regime, rather than a universal tax calculation for every transaction.

Special provisions can change the treatment of particular transactions. Founding shareholders, taxpayers transferring property under an exemption, and nonresidents claiming treaty benefits need further review.

Listed Shares: The 0.1% Final Tax

Indonesia generally imposes final income tax of 0.1% on the gross proceeds from selling shares through the Indonesian stock exchange.

Article 244 of PMK 81/2024 sets out this treatment. The regulation took effect on 1 January 2025 and has subsequently been amended, including by PMK 1/2026.

The tax applies to the prescribed gross transaction value. Investors therefore do not calculate this final tax by subtracting the original purchase price from the selling price.

Under Article 245, the exchange transaction mechanism collects the tax through the securities intermediary at settlement.

Keep your broker’s transaction confirmations and records of tax collected. These documents support the amounts reported in the relevant tax records.

Additional Tax on Founder Shares

Founding shareholders may have an additional final income tax obligation under the founder-share provisions.

Article 246 of PMK 81/2024 provides an additional 0.5% final income tax based on the prescribed value of qualifying founder shares.

The regulation determines that value using the relevant historical reference point, including the initial public offering price for companies listed after the prescribed 1996 reference date.

The founder-share levy has its own calculation and payment requirements. Do not assume the ordinary 0.1% exchange-sale deduction covers every obligation attached to founder shares.

Private Company Share Sales: Resident and Nonresident Taxpayers

A direct sale of shares in an unlisted Indonesian company requires a separate assessment of the seller’s tax status.

The shareholder register and sale agreement identify the investor transferring the shares. The company’s foreign ownership status does not determine the shareholder’s personal tax residency.

Resident Individuals Selling Private Shares

An Indonesian tax-resident individual generally calculates taxable gains from selling private-company shares under the ordinary personal income tax regime, unless a specific provision applies.

Under Law No. 7 of 2021, resident individual income tax rates range from 5% to 35%, depending on annual taxable income.

The applicable marginal rate depends on the individual’s wider tax position. An investor cannot determine the liability from the share sale proceeds alone.

For the annual bracket structure, see our personal income tax guide for Indonesia.

Resident Companies Selling Private Shares

An Indonesian-incorporated PT PMA is generally an Indonesian resident corporate taxpayer, even when foreigners own all or part of its shares.

When a PT PMA sells an investment that falls under the ordinary income tax regime, the company includes the taxable gain in its corporate tax calculation.

The standard corporate income tax rate is 22% under Law No. 7 of 2021. That rate has applied since the 2022 tax year, subject to applicable special rates, adjustments, and reliefs.

It applies to corporate taxable income rather than automatically to the entire amount received from a share sale.

Our corporate income tax guide for PT PMA owners explains the wider calculation.

Nonresident Shareholders Selling Private Shares

Article 238 of PMK 81/2024 provides a specific Article 26 withholding mechanism for qualifying gains from sales of company shares by nonresidents other than Indonesian permanent establishments.

The provision uses deemed net income equal to 25% of the selling price. It then applies Article 26 tax at 20% of that deemed amount.

The resulting effective tax is 5% of the gross selling price and is final for transactions covered by the provision.

Where the seller is a resident of a country with an applicable tax treaty, Article 238 requires consideration of whether that treaty gives Indonesia the right to tax the gain.

The formula should not be applied automatically to every asset owned by a foreign investor. The tax treatment of land, listed shares, and other property must be assessed under the rules relevant to those assets.

Example: Capital Gains Tax When Shares Are Sold at a Loss

A final tax based on gross proceeds can arise even when the investor loses money on the underlying investment.

Consider an investor who bought listed shares for IDR 1.2 billion and later sold them through the Indonesian stock exchange for IDR 1 billion.

The sale produces an economic loss of IDR 200 million before fees and tax. The applicable exchange transaction still generates IDR 1 million in final income tax.

A Different Result for a Qualifying Nonresident Private-Share Sale

Suppose a nonresident sells shares in an Indonesian private company for the same IDR 1 billion.

If the transaction falls within Article 238 and Indonesia retains taxing rights, the domestic final tax calculation would be:

IDR 1,000,000,000 × 5% = IDR 50,000,000.

The example assumes the full IDR 1 billion is the relevant selling price and that no applicable treaty changes the Indonesian tax outcome.

Actual tax treatment requires confirmation of the seller’s status, the nature of the shares, and the relevant transaction documents.

Capital Gains Tax on Property in Indonesia

Government Regulation No. 34 of 2016 governs final income tax on qualifying transfers of Indonesian land or building rights and covered sale-and-purchase agreements.

PP 34/2016 was enacted on 8 August 2016 and became effective on 8 September 2016.

The standard rate is 2.5% of the gross transfer value determined under the regulation.

Specific provisions provide different treatment for qualifying transactions.

• 2.5%: The standard final income tax rate for transfers covered by the general provision.
• 1%: The rate for qualifying transfers of simple houses or simple apartments by taxpayers whose principal business meets the regulation’s requirements.
• 0%: The rate for specified transfers connected with qualifying government acquisition for public interest.

Other exclusions may apply under PP 34/2016. The parties should examine the transfer documents and eligibility conditions before treating a transaction as exempt.

Land and building acquisitions can also create separate buyer-side obligations, including applicable BPHTB. The seller’s final income tax rate does not represent the buyer’s entire transaction tax cost.

Property Owned by a PT PMA

Consider a foreign shareholder who wants to exit a PT PMA that owns commercial property.

If the company sells the property, the company transfers the underlying land or building rights. The relevant property-transfer tax provisions require review.

If the shareholder sells shares in the PT PMA, the shareholder transfers an equity interest. That transaction requires a share-sale analysis, including any applicable tax treaty.

The distinction affects the identity of the seller, applicable tax rules, and transaction documentation.

Investors comparing a share acquisition with an asset acquisition can also review our business due diligence checklist for Indonesia.

Capital Gains Tax on Crypto Assets in Indonesia

Minister of Finance Regulation No. 50 of 2025 changed Indonesia’s tax treatment of crypto asset trading from 1 August 2025.

The regulation distinguishes trading through domestic digital financial asset traders, known as PAKD, from transactions through other electronic trading platforms covered by the regulation.

Crypto Sales Through a Domestic PAKD

PMK 50/2025 generally imposes final Article 22 income tax of 0.21% of the prescribed transaction value when a seller trades through a qualifying domestic PAKD mechanism.

The domestic trading platform collects, pays, and reports the tax under the regulation.

Crypto Sales Through Other Covered Trading Platforms

For transactions through a non-PAKD electronic trading platform within the relevant provisions, PMK 50/2025 imposes final Article 22 tax of 1% of the prescribed transaction value.

This category includes covered transactions through foreign electronic trading platforms.

Where DJP has appointed the foreign platform as a collector, the platform handles the collection obligations. If the relevant platform has not been appointed, the seller may have to pay and report the tax directly.

The seller should check the platform’s status and transaction records before determining the payment procedure.

Crypto-to-crypto transactions also require attention. An investor should not assume that tax arises only after converting crypto assets into rupiah.

PMK 50/2025 separately addresses VAT treatment for crypto assets and the services provided by trading platforms. Platform fees should not be confused with income tax on the seller’s crypto transaction.

How Tax Residency Affects Foreign Investors

Foreign citizenship does not automatically make an individual a nonresident taxpayer in Indonesia.

Indonesian tax residency depends on the applicable residence tests, including where an individual lives, the length of their presence, and evidence of an intention to reside.

Indonesia’s tax residency rules include a test based on presence for more than 183 days within a 12-month period. Other residence conditions can also establish resident status.

The Directorate General of Taxes addresses these tests in the rules on determining domestic and foreign tax subjects.

For a PT PMA shareholder, residence should be established before relying on either the resident individual tax regime or the nonresident Article 26 share-sale calculation.

An Indonesian-incorporated PT PMA generally remains a domestic corporate taxpayer despite foreign shareholding.

How Tax Treaties Affect Capital Gains Tax in Indonesia

A tax treaty can change Indonesia’s right to tax a capital gain earned by a resident of a treaty partner country.

Foreign shareholders should examine the capital gains article in the specific treaty between Indonesia and their country of tax residence.

The result can depend on the asset, the seller’s residence, the nature of the company being sold, and the wording of the treaty.

Some treaties distinguish ordinary shares from shares deriving substantial value from immovable property. The relevant treaty text and transaction facts determine whether that distinction applies.

Article 238 of PMK 81/2024 expressly links Indonesian Article 26 withholding on covered share sales to Indonesia’s taxing rights under an applicable treaty.

A seller should therefore review treaty entitlement before applying the domestic effective 5% calculation to a cross-border share sale.

Form DGT Requirements Under PMK 112/2025

Minister of Finance Regulation No. 112 of 2025 governs procedures for applying Indonesia’s tax treaties.

The regulation was enacted on 30 December 2025 and came into force on 31 December 2025.

DJP’s implementation announcement, PENG-2/PJ.09/2026, directs nonresident taxpayers to use the Form DGT format provided under PMK 112/2025.

However, a Form DGT issued under the earlier PER-25/PJ/2018 procedure before PMK 112/2025 took effect remains valid for its stated period.

DJP also identifies the Coretax menu LA.03-03 for submitting Form DGT information and uploading the relevant documentation.

Before a cross-border share sale closes, the parties should confirm whether the seller qualifies for treaty benefits and whether the withholding party has the documents needed to apply the relevant treatment.

Who Must Withhold and Report Capital Gains Tax?

The responsible party depends on the transaction. A foreign shareholder should establish the collection arrangement before agreeing to the final payment schedule.

Listed Shares

Under Article 245 of PMK 81/2024, the exchange transaction mechanism collects the prescribed final income tax through the securities intermediary.

The transaction confirmation and related broker records provide evidence of the sale and the tax collected.

Private Shares Sold by a Nonresident

Article 239 of PMK 81/2024 identifies the withholding and collection responsibilities for the nonresident share-sale regime under Article 238.

Where a nonresident sells shares to an Indonesian taxpayer, the buyer is responsible for the relevant Article 26 withholding.

Where the buyer is also a nonresident, the Indonesian company whose shares are transferred is designated as the tax collector under the provision.

The designated party must prepare the relevant tax evidence and fulfil the applicable payment and reporting obligations.

Under Article 240, the company records the share-transfer deed upon receiving the required evidence that the relevant Article 26 tax has been paid.

The parties should settle these responsibilities in the transaction documentation before completion.

Land and Building Transfers

For a standard property transfer covered by PP 34/2016, the seller generally handles the applicable final income tax payment under the prescribed procedures.

The payment evidence forms part of the documentation required for the relevant property transfer process.

Ordinary Asset Disposals by a PT PMA

A PT PMA selling ordinary business assets needs to reconcile the proceeds with the company’s tax records.

The finance team should confirm the tax book value, applicable income tax treatment, and any separate indirect tax obligations.

Where ordinary corporate income tax applies, the gain enters the company’s annual taxable income calculation.

Documents to Prepare Before Selling an Indonesian Investment

A tax review becomes easier when the seller can show how the investment was acquired, who owns it, and what the buyer will receive.

Prepare the following records before the transaction closes:

1. Ownership documents. Obtain the shareholder register, relevant company deeds, asset title, or other records establishing the seller’s legal interest.
2. Acquisition records. Retain the original purchase agreement, payment evidence, and documents supporting the relevant tax basis.
3. Proposed sale documents. Review the selling price, payment schedule, currency, conditions, and allocation of transaction costs.
4. Tax residency documentation. For nonresident sellers, establish the relevant residence position and available treaty documentation.
5. Withholding arrangements. Identify the party responsible for calculating, collecting, paying, and reporting the applicable tax.
6. Transaction tax records. Retain the withholding or collection evidence, payment confirmation, and relevant filing records.

The required documents will vary. A property transfer, listed-share transaction, and private PT PMA share sale do not follow identical procedures.

Review Your Capital Gains Tax Position Before Closing

For an investor preparing a PT PMA exit, the main objective is to establish the tax position before the parties settle the price and payment arrangements.

The seller should know whether Indonesia taxes the net gain or the prescribed transaction value. A nonresident also needs to establish whether an applicable treaty changes Indonesia’s taxing rights.

If your transaction involves a PT PMA, Indonesian assets, or foreign shareholders, InvestinAsia’s Indonesia tax compliance services provide a route to discuss the relevant tax records, withholding obligations, and reporting requirements.

InvestinAsia is the Indonesia market entry arm of vOffice Group. Its Indonesia operations are supported by the group’s business services infrastructure and local corporate services capabilities.