Income tax on rent, worked example, in Indonesia
June 14, 2017
|Non-resident couple´s rental income1|
|Monthly Rental Income2||1,500||6,000||12,000|
|Annual Rental Income||18,000||72,000||144,000|
|= Taxable Income||18,000||72,000||144,000|
|Annual Income Tax Due||3,600||14,400||28,800|
|Tax Due as % of Gross Income||20.00%||20.00%||20.00%|
Global Property Guide
1 The residential property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 13,300.00 IDR
3 Nonresident foreigners deriving rental income in Indonesia are subject to a 20% income tax rate levied on the gross income, without any deduction for depreciation expense and other income-generating expenses.