Corporate Income Tax (PPh Badan)

Corporate Income Tax (PPh Badan) is the tax on taxable income earned by corporate taxpayers in a tax year. Governed by Article 17 paragraph (1) (b) of the Income Tax Law (No. 36/2008). The standard corporate tax rate is 22% since tax year 2022 (previously 25%). Domestic public companies with at least 40% of shares traded on the Indonesia Stock Exchange qualify for a 3-percentage-point discount (19%). MSMEs with turnover below Rp 4.8 billion may apply a final tax rate of 0.5% under Government Regulation No. 55/2022.

This article is for education, not tax advice.

Example

PT Sukses has Taxable Income of Rp 1 billion in 2024. PPh Badan = Rp 1 billion x 22% = Rp 220 million. Minus tax credits (PPh 25, PPh 23, etc.) gives the balance due (PPh 29).

Source: Article 17 paragraph (1)(b) UU PPh No. 36/2008; PP No. 55/2022