A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a foreign-owned limited liability company in Indonesia established under Law No. 25/2007 on Investment. Every PT PMA must comply with corporate tax regulations issued by the Directorate General of Taxes (DJP) under the Ministry of Finance.
The standard corporate income tax rate for PT PMA entities is 22%, complemented by mandatory filings for Withholding Tax (PPh 21/23), Personal Income Tax (PPh 25/29), Value Added Tax (VAT at 11%), Land and Building Tax (PBB), and Documentary Stamp Tax (Bea Meterai).
PT PMA companies investing between IDR 1 billion and IDR 500 billion may qualify for a 50% reduction in Corporate Income Tax during their initial five years of operation. Proper registration with the Online Single Submission (OSS) system and timely reporting to the DJP ensure compliance, avoid penalties, and build tax efficiency for sustainable business growth in Indonesia.
Understanding these obligations ensures full compliance with Indonesian tax regulations and avoids penalties, making tax management a critical component of operating a PT PMA successfully.
But before discussing its tax regulations, make sure your PMA company is properly registered. You can rely on InvestinAsia’s services for PMA company registration in Indonesia.
Types of Corporate Taxes for PT PMA in Indonesia
In general, the law treats PT PMA similarly to a domestic company, subject to the same Indonesian company tax rates. Foreign individuals managing a PT PMA for property rental purposes should be aware of the following six crucial corporate taxes in Indonesia:
- Corporate Income Tax (CIT)
- Employee Withholding Tax (WHT)
- Personal Income Tax (PIT)
- Land and Buildings Tax (PBB)
- Value Added Tax (VAT)
- Documentary Stamp Tax
As a business owner, having a clear understanding of tax obligations associated with operating a PT PMA in Indonesia, including property taxes, is indispensable.
Also read: Indonesia Tax Rate: A Complete Guide
Corporate Income Tax (CIT)
Corporate Income Tax applies to the net taxable income earned by a PT PMA each fiscal year.
- Tax Rate: 22%
- Regulator: Directorate General of Taxes (DJP)
- Filing Deadline: April 30th of the following year
- Payment Deadline: 10th day of the subsequent month
PT PMA entities investing between IDR 100 billion ($6.5 million) and IDR 500 billion ($32.5 million) during their first five years can receive a 50% reduction on CIT. Global tax treaties may also lower rates for cross-border activities.
Example: Capital gains from property sales are considered taxable income and must be reported under CIT regulations.
Also read: Indonesia Corporate Tax Rate: Navigating the Business Landscape
Employee Withholding Tax (WHT)
Employee Withholding Tax (PPh 21) is the portion of an employee’s salary deducted by a PT PMA and remitted directly to the government.
- Filing Deadline: 20th of the following month
- Payment Deadline: 10th of the following month
Progressive Tax Rates (with NPWP):
| Income Range | Tax Rate |
|---|---|
| Up to IDR 60 million ($3,900) | 5% |
| IDR 60–250 million ($3,900–$16,250) | 15% |
| IDR 250–500 million ($16,250–$32,500) | 25% |
| IDR 500 million–5 billion ($32,500–$325,000) | 30% |
| Above IDR 5 billion ($325,000) | 35% |
Non-residents without a Tax ID (NPWP) are taxed at a flat 20% rate. Foreigners with temporary stay permits (KITAS) are exempt from NPWP obligations.
Also read: The Minimum Capital for Establishing PMA Company in Indonesia
Personal Income Tax (PIT)
Personal Income Tax (PPh 25/29) applies to individual employees or shareholders earning income from the PT PMA.
- Filing Deadline: March 31st of the following year
- Payment Deadline: 10th of the subsequent month
Shareholders must also pay dividend tax, which forms part of their income tax liability. The progressive PIT rates mirror those under WHT.
| Income | Tax Rate |
|---|---|
| Up to IDR 60 million ($3,900) | 5% |
| IDR 60 million ($3,900) – IDR 250 million ($16,250) | 15% |
| IDR 250 million ($16,250) – IDR 500 million ($32,500) | 25% |
| IDR 500 million ($32,500) – IDR 5 billion ($325,000) | 30% |
| Over IDR 5 billion ($325,000) | 35% |
Also read: PT vs PMA vs KPPA Indonesia, What’s the Differences?
Land and Buildings Tax (PBB)
Land and Building Tax (Pajak Bumi dan Bangunan or PBB) is payable by the property owner, which includes PT PMA entities owning land or buildings in Indonesia.
- Tax Authority: DJP (Directorate General of Taxes)
- Rate: Up to 0.5% of the taxable value (NJKP)
- Payment Deadline: Within six months after receiving the SPPT (Tax Due Letter)
Example Calculation:
If a property has an NJOP (taxable sale value) of IDR 5.8 billion:
NJKP = 40% × (5,800,000,000 – 12,000,000) = IDR 2.32 billion
PBB = 0.5% × 2.32 billion = IDR 11.58 million ($752) annually.
Also read: Can a PMA Own Land and Properties in Indonesia?
Value Added Tax (VAT)
Value Added Tax (VAT) is imposed on the sale of goods and services, both tangible and intangible.
- Standard Rate: 11%
- Filing & Payment Deadline: End of the following month
PT PMA companies must register as PKP (Pengusaha Kena Pajak) to collect and remit VAT properly. Businesses dealing in exports may qualify for zero-rated VAT (0%) under certain conditions.
Documentary Stamp Tax (DST)
Documentary Stamp Tax (Bea Meterai) applies to official documents, contracts, and legal agreements.
- Tax Rate: IDR 10,000 ($0.65) per document
- Payment: Due at the time of legalization
This tax is mandatory for documents approved by Indonesian government offices, banks, or notaries.
Also read: Business Registration Number vs Tax ID: The Key Differences
Filing and Payment Summary for PT PMA Corporate Taxes
The table below outlines the filing and payment deadlines for corporate taxes in Indonesia:
| Type of Tax | Filing Deadline | Payment Deadline |
|---|---|---|
| Corporate Income Tax (CIT) | April 30 (following year) | 10th of the following month |
| Withholding Tax (WHT) | 20th of following month | 10th of following month |
| Personal Income Tax (PIT) | March 31 (following year) | 10th of following month |
| Land and Building Tax (PBB) | Upon SPPT issuance | Within 6 months |
| Value Added Tax (VAT) | End of following month | End of following month |
| Documentary Stamp Tax (DST) | N/A | Upon legalization |
Timely submission and payment are essential to avoid penalties or interest charges under Law No. 7/2021 on Harmonized Tax Regulations.
Managing Your PT PMA Taxes in Indonesia
Ensure that the taxes for your PMA company are managed correctly. You can rely on InvestinAsia’s Indonesia tax consultant and compliance services.
Our experienced team of professionals is ready to assist you in every tax matter, such as:
- Accounting and tax reporting services in Indonesia
- Indonesia Payroll Service
- Indonesia LKPM Reporting Service
- Indonesia VAT Taxpayers Registration
Contact us for a FREE tax consultation and get special offers!
