Next, effective January 1, 2022, SB 1828 consolidates the state’s four general marginal individual income tax rates into two by eliminating the 4.5 percent and 4.17 percent general rates and reducing the two lower rates from 3.34 to 2.98 percent and from 2.59 to 2.55 percent, benefiting all individual income taxpayers. 8 With the determination of such corporate income tax rate, the Government of Indonesia canceled the provision for reducing the corporate income tax rate, in which the previous provision on the income Rp Rate Tax Rp On the first 50,000,000 10% 5,000,000 On the next 50,000,000 15% 7,500,000 Over 100,000,000 30% ---Tax residence A company is treated as a resident of Indonesia for tax by virtue of its establishment or its place of management in Indonesia. A foreign company carrying out business Indonesia Tax Info | March 2020 Page 5 1. Income Tax The income tax facilities available in SEZ are as follow: a. Tax holiday b. Tax allowance c. Other income tax facilities as per prevailing regulations. 1.1. Tax Holiday Facility Business Entity and Business Player investing in main business sector can apply for tax holiday facility. However, Foreign tax relief. A tax resident is entitled to claim foreign tax credits against Malaysian tax. Where a treaty exists, the credit available is the whole of the foreign tax paid or the Malaysian tax levied, whichever is lower. In the absence of a tax treaty, the credit available is restricted to half of the foreign tax paid. The change of tax rates policy enforced through the Law of Income Tax No. 36 of 2008 also contributed on the level of tax evasion in Indonesia. Moreover, the socio-economic and demographic factors were also included in the analysis of identified tax evasion. Keywords: Tax Evasion, Personal Income Tax, Progressive Tax Rates. .

indonesia personal income tax rate