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Asia

SMEs and bootstrapped founders, Indonesia

A 0.5% final tax regime applies to SMEs with turnover under IDR 4.8B, dramatically simplifying compliance for early stage operators. Investor KITAS visa provides residency for qualifying foreign directors and shareholders.

0.5% SME final taxInvestor KITAS62 DTAs
Start setup {placement} 4 min · no card required
Corp tax
22%
Fastest setup
6 weeks
Tax treaties
62
Region
Asia

What you'll need

  • Resident director required
  • Local registered office required
  • Economic-substance test applies
  • Minimum capital: IDR 2,500,000,000
  • Administrative language: Indonesian (Bahasa Indonesia)
  • Legal system: Civil law

Tax and treaty profile

  • Corporate tax 22%
  • Tax treaties 62
  • VAT rate 12%
  • Withholding on dividends 20%
Key treaty partners
SingaporeNetherlandsJapanUnited StatesChinaSouth Korea

Banking and payments

  • Banking takes 2 to 4 weeks with KYC
  • Stripe supported
  • Wise supported
  • EMI license framework available

Considerations

If you have limited startup capital

PT PMA (foreign owned) requires IDR 2.5B paid up capital and an IDR 10B investment plan per KBLI business code. Multi code businesses multiply the capital requirement, locking up significant working capital before launch.

IDR 2.5B paid upIDR 10B per KBLICapital lock up