Share with your friends

Indonesia: Proposal for reduced corporate tax rate, territorial tax system

Indonesia: Proposal for reduced corporate tax rate

The government reportedly is finalizing a draft of a tax omnibus bill, with the intention that the legislation would be presented to the Parliament for consideration in January 2020.


Related content

According to information from the Ministry of Finance, the draft legislation would:

  • Decrease the corporate income tax rate in phases, initially from 25% to 22% and subsequently to 20%
  • Replace the current worldwide tax system for foreign individual tax residents to a territorial tax system so that these persons would no longer be subject to Indonesian income tax on their overseas income

Read a December 2019 report prepared by the KPMG member firm in Indonesia 

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal