Back to all country updates
The Harmonization of Tax Regulations (HPP) Law
The HPP Law will impact Income Tax, Value-Added Tax (VAT), and the General Tax Provisions Law.
Key changes include:
- The VAT rate will gradually increase from 10% to 11% from 1 April 2022, and then from 11% to 12% at some point no later than 1 January 2025.
- Removal of some previously exempt services like financial and medical services
- Introduction of Carbon Tax on the purchases of carbon-containing goods from 1 April 2022
- The tax bracket for individuals who earn Rp0-60 million per year
- A new tax bracket of 35% for the highest income earners to be introduced for taxable income above IDR5 billion.
For more information, please visit the government website.
Minimum Wage for Jakarta Increases for 2022
Jakarta’s provincial minimum wage for 2022 will be set at Rs 4,641,854, increasing by 5.1%.
Foreigners Can Enter on Certain Conditions
Effective 15 September 2021, the Minister of Law and Human Rights issued Regulation No. 34 of 2021, changing the restrictions on foreigners entering Indonesia.
Source: Links International
Back to all country updates