How much tax do residents pay on dividends in Indonesia?

Since the Omnibus Law and HPP Law, a resident individual's domestic dividend is exempt from income tax if it is reinvested in Indonesia within the required period and conditions are met. If it is not reinvested, the dividend is subject to a 10% final tax. Resident corporate shareholders are generally exempt.

What is the dividend reinvestment exemption?

A resident individual who receives a domestic dividend can avoid the 10% tax entirely by reinvesting the dividend in qualifying Indonesian instruments within the period set by PMK 18/2021, and by reporting it correctly. If the reinvestment conditions are not met, the 10% final tax applies.

How are dividends to non-residents taxed?

Dividends paid to a non-resident are subject to 20% withholding under PPh Pasal 26. This can be reduced by an applicable double-tax treaty, commonly to 10% or 15% (and 5% for substantial holdings under some treaties). To claim the reduced rate, the recipient must provide a valid Certificate of Domicile (DGT form).

Does this calculator handle corporate shareholders?

It focuses on resident individuals and non-residents, the cases where tax actually applies. Dividends received by a resident Indonesian company are generally exempt from income tax, so a corporate recipient would typically receive the full gross amount net of nothing.

What documents do I need to claim a treaty rate?

A non-resident claiming a treaty-reduced withholding rate must submit a valid Certificate of Domicile, lodged using the Indonesian DGT form, to the payer before payment. Without it the full 20% PPh 26 rate applies. Keep the documentation in case of a tax audit.

Indonesia Dividend Tax Calculator

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The Indonesia dividend tax calculator shows what you keep after tax on a dividend. It applies the right rule for resident individuals — including the reinvestment exemption introduced by the Omnibus and HPP laws — and the PPh 26 withholding regime for non-residents.

How it works

The rate depends on who receives the dividend:

Resident individual, reinvested: 0% — exempt, provided the domestic dividend is reinvested in Indonesia within the required period and reported correctly.
Resident individual, not reinvested: 10% final tax.
Non-resident: 20% withholding under PPh Pasal 26, reducible by treaty (commonly 10-15%, sometimes 5%).

The tool multiplies the gross dividend by the applicable rate to give the tax withheld and your net dividend.

Worked example

A resident individual receiving a Rp 50,000,000 dividend pays Rp 5,000,000 (10%) and nets Rp 45,000,000 if it is not reinvested — but Rp 0 tax and the full Rp 50,000,000 if it is reinvested in Indonesia under the HPP rules. A non-resident with no treaty pays 20%, Rp 10,000,000; a 10% treaty rate cuts that to Rp 5,000,000.

Tips and notes

The reinvestment exemption has strict timing and reporting conditions under PMK 18/2021 — meeting them is what makes the dividend tax-free.
Non-residents need a valid Certificate of Domicile (DGT form) to claim any treaty-reduced rate.
All figures are calculated in your browser. Nothing is uploaded or stored.