VAT & income tax calculator

Calculating VAT

The VAT (PPN) rate is currently 12%. For general goods and services, VAT is not charged on the full selling price but on an other tax base of 11/12 of the price. The result is the same as 11% of the price. The 12% rate on the full price only applies to luxury goods subject to PPnBM (PMK 131/2024).

Type	Formula	Price IDR 10,000,000
General goods/services	12% × (11/12 × price)	VAT IDR 1,100,000
Luxury goods	12% × price	VAT IDR 1,200,000

When the price already includes VAT

Divide the total by 1.11 (general goods/services) or 1.12 (luxury goods) to get the price before VAT. The difference is the VAT. Example: a total of IDR 11,100,000 ÷ 1.11 = a price of IDR 10,000,000 and VAT of IDR 1,100,000.

Income tax withheld by the buyer

For certain types of income, a buyer appointed as a withholder (a company, for example) deducts income tax (PPh) from the payment, pays it to the state, and gives the seller a withholding slip. The tax is calculated on the price before VAT.

Type of income	Rate
Services (PPh 23)	2%
Rent of assets other than land/buildings (PPh 23)	2%
Dividends, interest, royalties, prizes (PPh 23)	15%
Land/building rent (PPh 4(2), final)	10%

If the recipient has no NPWP (tax ID), the PPh 23 rate is 100% higher, for example 2% becomes 4%.

A full example for one service invoice

Design work worth IDR 10,000,000 for a client company:

• VAT: 12% × (11/12 × IDR 10,000,000) = IDR 1,100,000
• Invoice total: IDR 11,100,000
• PPh 23 withheld by the client: 2% × IDR 10,000,000 = IDR 200,000
• Transferred by the client: IDR 10,900,000, plus a PPh 23 withholding slip for IDR 200,000

The 0.5% MSME final tax

Businesses with turnover up to IDR 4.8 billion a year can pay a final income tax of 0.5% of turnover (PP 55/2022 as amended by PP 20/2026, effective 22 April 2026). Since PP 20/2026, the rate is for individuals, sole-owner PTs (PT Perorangan), and cooperatives. Individuals and sole-owner PTs can use it with no time limit; cooperatives for up to four years from registration.

For individuals, the first IDR 500 million of turnover each year is not taxed. It is counted cumulatively from January: tax only starts in the month the year's turnover passes IDR 500 million, and only on the excess.

Example: turnover from January to May is IDR 460 million and June turnover is IDR 80 million. The year's turnover becomes IDR 540 million, so IDR 40 million is taxed in June. June final tax: 0.5% × IDR 40,000,000 = IDR 200,000.

Newly registered regular PTs, CVs, and partnerships can no longer use this rate. Income from independent professions, such as doctors, lawyers, accountants, notaries, architects, and influencers, is also excluded.

Rounding

This calculator rounds tax down to the full rupiah. Results may differ by one rupiah from invoices or withholding slips made by other software, depending on how they round.