Capital Market Tax

Stock sales on the Indonesia Stock Exchange are subject to final income tax at: (1) 0.1% of gross transaction value for regular shares — automatically deducted by the broker and remitted to KSEI, (2) Additional 0.5% on founder shares at IPO valuation. The tax is final, meaning the taxpayer does not need to report or pay additional tax on these transactions in their annual return. Brokerage commissions, VAT, and IDX levies are charged separately.

Under the Omnibus Law (UU Cipta Kerja): (1) Dividends received by domestic individual taxpayers are exempt from income tax if reinvested in Indonesia for a minimum of 3 years, (2) If not reinvested, the individual pays 10% final tax, (3) Dividends received by domestic corporate taxpayers are fully exempt regardless of reinvestment, (4) Dividends paid to foreign taxpayers (WPLN) are subject to 20% PPh 26, potentially reduced under an applicable tax treaty.

Bond income is subject to final withholding tax: government bonds (SUN, ORI, SBR): interest is 10-15% final depending on the bond series and investor type. Corporate bonds: interest is 15% final for domestic taxpayers and 20% for foreign taxpayers (or treaty rate). Capital gains on bond sales: 0% for government bonds held to certain conditions, standard rates for corporate bonds. All final taxes are withheld by the custodian bank.

Capital gains from the sale of non-listed shares are subject to standard income tax rates: individual sellers pay progressive rates (5-35%), while corporate sellers pay 22% corporate income tax on the net gain. The gain is calculated as the selling price minus the tax basis (acquisition cost adjusted for any capital changes). Unlike listed shares, non-listed share transactions do not benefit from the 0.1% final tax regime.

Securities companies (broker-dealers, underwriters) have two layers of tax obligations: (1) Their own tax compliance — corporate income tax at 22% on brokerage and underwriting income, VAT at 11% on services, employee PPh 21, and (2) Custodian and reporting obligations — ensuring correct 0.1% final tax deduction on client transactions, providing annual tax reports to clients, and reporting to KSEI and DGT as required.

Your tax work is handled by Arunika's tax consultants. We confirm the scope, deadlines and price before work starts.

Contact us early. We help analyze the risk, prepare supporting documents, draft the response, and assist discussions with the tax office.

We review your structure, transactions and available incentives so tax is calculated under the rules, without crossing into tax evasion. The outcome depends on your facts, so we do not promise a savings figure.