Independent Profession (Pekerjaan Bebas)
Independent profession (pekerjaan bebas) is work performed by an individual with specialized skills as a way to earn income, without an employment relationship with any employer. The definition is set in Article 1 number 24 of the Indonesian Income Tax Law. Professions classified as independent include skilled professionals (lawyers, public accountants, architects, doctors, notaries, appraisers, actuaries, consultants), musicians and event hosts, athletes, advisors, teachers and trainers, authors and translators, advertising agents, project supervisors or managers, brokers, traveling salespeople, insurance agents, MLM distributors, and certain entrepreneurs. Income from independent professions is reported on Form 1770 of the Individual Annual Tax Return. Net income is computed through bookkeeping or, for those with gross turnover under IDR 4.8 billion a year, through the Net Income Calculation Norm (NPPN) under Article 14 of the Income Tax Law.
This article is for education, not tax advice.
Example
Dr. Rina runs a private practice in Jakarta. As a doctor, she falls under skilled professionals and her income is classified as income from an independent profession. She can compute net income using NPPN at 50 percent for KLU 86202, provided she files the notification via Coretax before 31 March of the tax year.
Source: Law No. 7 of 1983 as amended by Law No. 7 of 2021, Article 1 number 24
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