How wealth tax works in Indonesia
Indonesia does not impose a general tax on an individual's net worth. Holding cash, listed investments or other financial assets is not, by itself, subject to an annual wealth tax. The income produced by those assets can still be taxable.
Land and buildings are different. Rural and urban land and building tax, or PBB-P2, is a local tax with a statutory maximum rate of 0.3% of the applicable tax base, while certain centrally administered sectors follow separate PBB rules.
Acquiring land or buildings can trigger BPHTB, a local duty generally capped at 5% of the taxable acquisition value after the local non-taxable threshold. It can apply to purchases and some non-sale acquisitions, including inheritance.
Other ownership costs can include luxury-goods tax on qualifying purchases, transfer tax, stamp duty and local charges. Rental, interest, dividend and business income from wealth is taxed separately under the relevant income-tax rules.
Tax rates at a glance
- General net wealth tax
- 0%None
- PBB-P2 local property tax
- Up to 0.3%
- Certain PBB sectors
- 0.5% statutory rate
- BPHTB acquisition duty
- Up to 5%
- Stamp duty
- IDR 10,000
- Income from assets
- PIT / CIT / final rates
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Property investorsLong-term residentsFamily wealth planningListed-market investorsFounders holding business assets
Watch out for
- No net wealth tax does not mean no annual property cost. PBB is assessed locally or under sector-specific rules, and the tax base is tied to the official property valuation rather than simply the purchase price.
- BPHTB is a buyer-side acquisition duty and is separate from the seller's final PPh on a land or building transfer. Check the relevant local regulation and non-taxable threshold.
- A person can have no wealth tax and still owe tax on rent, dividends, interest, share sales, crypto, property transfers and luxury consumption.
Frequently asked questions
Does Indonesia have a wealth tax?
Indonesia does not have a broad annual net wealth tax. It does tax certain property ownership, acquisitions and transfers, and it taxes income earned from assets.
Does Indonesia tax property ownership?
Yes. Rural and urban land and building tax is a local annual property tax, with a statutory maximum rate of 0.3% of the applicable base. Certain sectors follow separate PBB rules.
What is BPHTB in Indonesia?
BPHTB is the duty on acquiring rights to land and buildings. The statutory rate is generally up to 5% of the taxable acquisition value after the local non-taxable threshold.